How did the Company use the net proceeds it received in the initial public offering of its Class A common stock?
The Company received approximately $135 million of net proceeds from its initial public offering and used the proceeds to pay down mainly higher rate interest debt. Specifically, the Company redeemed all $38.3 million of its outstanding 16% senior notes due 2011 and $70.0 million in aggregate principal amount of its 9¾% senior notes due 2010. The Company also completed a prepayment of $15.0 million in principal amount of the term loan under its Amended and Restated Credit Agreement. In total, in 2004, the Company retired more than $150 million of debt, including $21.6 million of its 111/4% senior subordinated notes due 2011, with operating cash flow. This will result in annual cash interest savings of approximately $16 million. Another $26 million of the 111/4% notes was repaid in early 2005, further strengthening the Company’s balance sheet.
