Best Buy 1999 Annual Report Download - page 37

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NOT E S T O CONS OL I DAT ED F I NANCI AL S T AT E ME NT S
$ in thousands, except per share amounts
3. LONG-TERM DEBT
E B E B
1999 1998
Senior Subordinated Notes $ – – $ 150,000
Other 60,597 75,322
60,597 225 ,322
Current portion of long-term debt 30,088 14,925
$ 3 0 ,509 $ 210,397
Senior Subordinated Notes:
On October 5, 1998, the Company prepaid its $150,000, 8-5/8% Senior Subordinated Notes due
October 1, 2000, at 102.5% of their par value. The prepayment premium of $3,750 and the write-off
of the remaining deferred debt offering costs of approximately $1,100 are included in interest
expense in fiscal 1999.
Other:
At February 27, 1999, long-term debt consists of a subordinated note, capital leases and other loans
that bear interest at rates ranging from 5.25% to 9.95%. The subordinated note is unsecured and
matures in July 1999. The capital leases and other loans are secured by certain property and equipment
with a net book value of $42,900 and $54,100 at February 27, 1999 and February 28, 1998, respectively.
During fiscal 1999, 1998 and 1997, interest paid (net of amounts capitalized) totaled $23,800,
$37,700 and $50,900, respectively. The fair value of long-term debt approximates carrying value.
U T U R E A T U R I T I E S OF ON G T E R M E B T
I S CA L E A R A P I T A L E A S E S T H E R
2000 $ 693 $ 2 9 ,395
2001 7,542 8,1 67
2002 – – 4,251
2003 – – 1,445
2004 – – 895
Thereafter – – 8,251
8,235 $ 52,404
Less amount representing interest 42
Minimum lease payments $ 8,1 9 3
4. CONVERTIBLE PREFERRED SECURITIES OF SUBSIDIARY
In November 1994, the Company and Best Buy Capital, L.P., a special-purpose limited partnership
in which the Company is the sole general partner, completed the public offering of 4,600,000
convertible monthly income preferred securities with a liquidation preference of $50 per security.
The securities were convertible into shares of the Company’s common stock at the rate of
4.444 shares per security (equivalent to a conversion price of $11.25 per share). In April 1998,
substantially all of the preferred securities were converted into approximately 20.4 million shares
of common stock. The remaining preferred securities were redeemed in June 1998 for cash of $671.
F I S CAL 1999 B E S T B U Y ANNU AL R E POR T
35