America Online 2009 Annual Report Download - page 88

Table of Contents
Assets recorded under capital lease obligations totaled $138.4 million and $275.3 million at December 31, 2009 and 2008, respectively. Related
accumulated amortization totaled $67.0 million and $215.9 million at December 31, 2009 and 2008, respectively.
Future minimum capital lease payments at December 31, 2009 are as follows (in millions):
2010 $ 35.8
2011 25.3
2012 14.3
2013 4.2
2014 and thereafter —
Total 79.6
Amount representing interest (5.7)
Present value of minimum lease payments 73.9
Current portion (32.4)
Total long-term portion $ 41.5
Senior Secured Revolving Credit Facility
On December 9, 2009, the Company entered into the Credit Agreement among the Company, the Lenders, the Administrative Agent and the other
financial institutions party thereto for a 364-day $250.0 million senior secured Revolving Credit Facility. The maturity date of the Revolving Credit Facility is
December 8, 2010. Borrowings under the Revolving Credit Facility are available for general corporate purposes. Loans made under the Revolving Credit
Facility will bear interest at a fluctuating rate based on the applicable rating for the senior unsecured long-term debt of Time Warner.
Time Warner has guaranteed all of the Company's obligations with respect to loans and letters of credit under the Revolving Credit Facility, pursuant to
a Guarantee, dated as of December 9, 2009, in favor of the Administrative Agent (the "Time Warner Guarantee"). As consideration for Time Warner
providing such guarantee, the Company will pay Time Warner an annual fee (payable quarterly) equal to 1.0% of the aggregate principal amount of the
commitments at closing under the Revolving Credit Facility, and an ongoing guarantee fee, which will vary with the amount of undrawn commitments and the
principal amount of the Company's obligations outstanding under the Revolving Credit Facility, as well as changes in Time Warner's senior unsecured long-
term debt credit ratings, but will be a minimum fee of $0.9 million. The guarantee fee will be subject to prescribed periodic increases over the term of the
Revolving Credit Facility.
On December 9, 2009, the Company and each of the Company's material, wholly-owned domestic subsidiaries entered into a Security Agreement in
favor of Bank of America, N.A., as collateral agent (the "Security Agreement"), for the benefit of the secured parties thereunder. Pursuant to the Security
Agreement, the obligations under the Revolving Credit Facility are secured by a perfected first-priority security interest in substantially all of the Company's
assets and the assets of each of the Company's material, wholly-owned domestic subsidiaries (excluding cash and real property, but including 100% of the
stock of the Company and each of the Company's material, wholly-owned domestic subsidiaries' first-tier domestic subsidiaries and 65% of the stock of their
first-tier foreign subsidiaries).
Under the terms of the Revolving Credit Facility, the Company is restricted from paying dividends, among other restrictive covenants. The Company
continues to be in full compliance with all covenants contained in the Revolving Credit Facility.
As of March 2, 2010, the Company has not borrowed under the terms of the Company's Revolving Credit Facility.
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