UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 31, 2005
GENERAL COMMUNICATION, INC.
(Exact Name of Registrant as Specified in its Charter)
Alaska 0-15279 92-0072737
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) No.)
2550 Denali Street Suite 1000 Anchorage, Alaska 99503
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (907) 868-5600
NONE
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Section 2 - Financial Information
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
On August 31, 2005, General Communication, Inc. (GCI) finalized a
$215,000,000 Amended and Restated Senior Secured Credit Facility ("amended
Senior Credit Facility"). The amended Senior Credit Facility includes a
$160,000,000 term loan ("Term Loan") and a $55,000,000 revolving credit facility
("Revolving Credit Facility") with a $25,000,000 sublimit for letters of credit.
Proceeds will be used to pay down the current Senior Credit Facility and the
Satellite Transponder Capital Lease with the remainder used to pay financing
fees. The amended Senior Credit Facility reduces the interest rate for the Term
Loan from LIBOR plus 2.25% to LIBOR plus 1.50%. The Term Loan rate reduction and
the pay down of the Satellite Transponder Capital Lease will reduce interest
expense by approximately $2 million per year.
The Term Loan will mature on August 31, 2012 and the Revolving Credit
Facility will mature on August 31, 2011. GCI will repay the Term Loan $400,000
per quarter beginning September 30, 2005. The remaining balance of $149,600,000
will be repaid in two equal installments during the seventh year of the
agreement. Loans outstanding under the Revolving Credit Facility will be repaid
on the maturity date.
Because a portion of the amended Senior Credit Facility is a substantial
modification of the May 21, 2004 Senior Credit Facility and the Satellite
Transponder Capital Lease, GCI will recognize approximately $1.8 million in
Amortization and Write-off of Loan and Senior Notes Fees during the three months
ended September 30, 2005. Remaining deferred costs of $0.4 million will continue
to be amortized over the life of the amended Senior Credit Facility.
Additionally, GCI will recognize a charge of approximately $2.9 million during
the three months ended September 30, 2005 due to the early termination of the
Satellite Transponder Capital Lease.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL COMMUNICATION, INC.
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(Registrant)
Date: August 31, 2005
By /s/
Name: John M. Lowber
Title: Senior Vice President,
Chief Financial Officer,
Secretary and Treasurer
(Principal Financial Officer)