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Debt
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Jun. 30, 2014
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(5) Debt Outstanding debt at June 30, 2014 and December 31, 2013 is summarized as follows:
TripAdvisor Term Loan Facility Due 2016 and Revolving Credit Facility On December 20, 2011, TripAdvisor entered into a Credit Agreement, which provides $600 million of borrowing including:
As of June 30, 2014, the Term Loan and loans under the Revolving Credit Facility bear interest at LIBOR plus 150 basis points, or the Eurocurrency Spread, or the alternate base rate (“ABR”) plus 50 basis points, and undrawn amounts are currently subject to a commitment fee of 22.5 basis points. As of June 30, 2014, TripAdvisor used a one‑month interest period Eurocurrency Spread which is approximately 1.7% per annum. Interest is payable on a monthly basis while TripAdvisor is borrowing under the one‑month interest rate period. The current interest rates are based on current assumptions, leverage and LIBOR rates and do not take into account that rates will reset periodically. The Term Loan principal is currently payable in quarterly installments on the last day of each calendar quarter equal to 2.5% of the original principal amount, with the balance due on the final maturity date. Principal payments aggregating $20 million were made during the six months ended June 30, 2014. The Revolving Credit Facility includes $40 million of borrowing capacity available for letters of credit and $40 million for borrowings on same‑day notice. As of June 30, 2014, there were no outstanding borrowings under the TripAdvisor Revolving Credit Facility. As of June 30, 2014, TripAdvisor was in compliance with all of its debt covenants. BuySeasons debt See note 6 for a discussion regarding the significant items related to BuySeasons debt obligations. Fair Value Due to the variable rate nature, TripCo believes that the carrying amount of its debt approximated fair value at June 30, 2014 and December 31, 2013. TripCo debt On August 21, 2014 TripCo, through a wholly owned subsidiary, entered into two separate margin loan arrangements for a total of $400 million with a term of three years. Interest on the margin loan will accrue at a rate of 3.65% plus LIBOR for six months and 3.25% thereafter to be paid in kind or cash at the election of TripCo.
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