Digital Generation, Inc. - 10-Q filing on 2013-05-10

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2013

Long-term debt as of March 31, 2013 and December 31, 2012 is summarized as follows (in thousands):

	March 31, 2013			December 31, 2012

Term loans	$	406,425		$	457,650
Less unamortized discount	(3,303		)	(3,732		)
Revolving loans	—			—
Subtotal	403,122			453,918
Less current portion	(35,650		)	(76,950		)

Long-term portion	$	367,472		$	376,968

Schedule of quarterly principal payments

Fiscal Quarter Ending	Minimum Quarterly Principal Payment (in thousands)
June 30, 2013	$	8,575
September 30, 2013	8,575
December 31, 2013	8,575
Each quarter thereafter	6,125

Schedule of ECF principal payments as a percentage of consolidated EBITDA

The Term Loans also require an annual principal payment based on a percentage of our ECF (as defined in the Amended Credit Facility) which at March 31, 2013 was estimated to be $3.8 million and is included in the current portion of long-term debt. The ECF principal payments are reduced by scheduled and voluntary principal payments and fluctuate based on our consolidated leverage ratio (as defined in the Amended Credit Facility) as follows:

Consolidated Leverage Ratio	ECF Prepayment as a Percentage of Consolidated EBITDA (as defined)
Greater than 3.00	75	%
2.25 to 3.00	50	%
1.25 to 2.25	25	%
Less than 1.25	0	%

Schedule of the maximum consolidated leverage ratio and minimum fixed charge coverage ratio under the entity's Amended Credit Facility

Period	Maximum Allowable Consolidated Leverage Ratio	Minimum Consolidated Fixed Charge Coverage Ratio
March 8, 2013 to June 29, 2014	4.00 to 1.00	1.05 to 1.00
June 30, 2014 to June 29, 2015	3.50 to 1.00	1.10 to 1.00
June 30, 2015 and thereafter	3.25 to 1.00	1.10 to 1.00