Level 3 Debt Worksheet

This is another in a series of modeling and compiled information posts, which I intend to update over time and refer to in posts.

Because LVLT’s debt is a major (if not all-encompassing) feature of its balance sheet, and because so many financial moves the company makes relate to its structure, it is worth keeping track of in some detail.

There are several floating rate issues that are pegged to LIBOR, and the relationship is more complicated than shown here. For instance, on the senior secured term loan, different parts of the loan may be pegged to different libor rates (1 month, 3 month, etc) at different times. Also the effective rate in any particular quarter is not the published rate at the time, but at the time the rate was reset. I have not attempted to mess with this, it’s just not worth the hassle. Why? Because the interest rate swap negates most effects other than the timing of payments, shifting costs around but keeping the yearly number relatively flat. Thus, the numbers given are a static view of a dynamic calculation, i.e. just a snapshot rather than a projection for the future.

Level 3 Debt Worksheet

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Categories: Financials