Intermedix - Laserfiche WebLink

Home Browse Search

INTERMEDIX HOLDINGS INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2010 Fair Value of Financial Assets The fair value of the cash and cash equivalents at December 31, 2010 (which is equal to carrying value) is determined based on Level 1 inputs as follows (in thousands): Description Fair value Cash held in overnight depository or repurchase agreements collected on behalf of and due to customers $ 5,166 Government collateralized money market funds and depository accounts $ 14,630 The carrying amount of accounts receivable, notes receivable, accounts payable and accrued expenses, client collections payable, other current liabilities, and accrued interest approximate fair value based on the short maturity of these accounts. The following table presents the carrying amounts and fair values of the Company's debt at December 31, 2010 (in thousands): Carrying Description amount Fair value Senior credit facility $ 209,013 220,637 Subordinated loans 85,000 95,441 Capitalized lease obligations 241 241 At December 31, 2010, the fair value of borrowings under the Senior Credit Facility was estimated based on the price paid to transfer the liability in an orderly transaction as evidenced by the March 2011 refinancing of such debt (see note 10). The Company believes that rates as of December 31, 2010 would not materially differ from the rates used in the refinancing. The fair value of the Subordinated Loans was based on similar other transactions involving similar rated debt that were being consummated with interest rates of approximately 10.0% — 10.5 %. The capital lease obligations carrying value is a reasonable estimate of fair value based upon current rates offered to companies with a similar credit profile as that of the Company. (13) Transactions with Related Parties Successor Advisory and Professional Services Fees Paid to Related Parties The Company has an Advisory Services Agreement (the ASA) dated August 23, 2010, with THL Managers VI, LLC, a Delaware limited liability company (Sponsor) who is an affiliate of the Company's majority equity holders. Pursuant to the terms of the ASA, the Sponsor agrees to provide the Company certain management consulting, financial and other advisory services as requested from time to time by the Board of Directors or other governing body of the Company, as applicable, and agreed to by the Sponsor. 27 (Continued)