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The Notes bear interest at a rate of 9.750% per year, payable on May&#160;15 and November&#160;15 of each year, beginning May&#160;15, 2011 with respect to the New Restricted Notes. Interest on the Senior Notes accrued from November&#160;15, 2010. The Notes mature on May&#160;15, 2017. The net proceeds of the Senior Notes were used to repay $77.9&#160;million due under LMI's then outstanding credit agreement and to pay a $163.8&#160;million dividend to Holdings to repay a $75.0&#160;million demand note it issued and for Holdings to repurchase $90.0&#160;million of its Series&#160;A Preferred Stock at the accreted value. The net proceeds of the New Restricted Notes were used to pay a $150.0&#160;million dividend to Holdings, which it used to fully redeem the balance of its Series&#160;A Preferred Stock at the accreted value of $44.0&#160;million and to pay a $106.0&#160;million dividend to the holders of its common securities and stock options. In conjunction with the issuance of the New Restricted Notes, LMI also made a cash payment of $3.75&#160;million to the Holders of the Senior Notes in exchange for the Holders of the Senior Notes consent to amend the Indenture to modify the restricted payments covenant to provide for additional restricted payment capacity in order to accommodate the dividend payment. The premium of $2.25&#160;million and the consent fee of $3.75&#160;million were capitalized and are being amortized over the term of the Notes as an adjustment to interest expense. All of the Notes have been registered with the Securities and Exchange Commission.</font></p> <p style="FONT-FAMILY: times;"><font size="2"><i>Redemption</i></font></p> <p style="FONT-FAMILY: times;"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;LMI can redeem the Notes at 100% of the principal amount on May&#160;15, 2016 or thereafter. 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LMI's obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured senior basis by Lantheus Intermediate and by one of LMI's subsidiaries, and the obligations of such guarantors under their guarantees are equal in right of payment to all of their existing and future senior debt.</font></p> <p style="FONT-FAMILY: times;"><font size="2"><i>Revolving Line of Credit</i></font></p> <p style="FONT-FAMILY: times;"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;As of December&#160;31, 2012, LMI had outstanding the Old Facility with an aggregate principal amount not to exceed $42.5&#160;million and an interest rate of LIBOR plus 3.75% or the Reference Rate (as defined in the agreement) plus 2.75%. The Old Facility also contained an unused line of credit fee of 0.75%, which was payable quarterly. 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Borrowing capacity is determined by reference to a borrowing base, which is based on (i)&#160;a percentage of certain eligible accounts receivable, inventory and machinery and equipment minus (ii)&#160;any reserves. 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The New Facility also contains customary default provisions as well as cash dominion provisions which allow the lender to sweep its accounts during the period certain specified events of default are continuing under the New Facility or excess availability under the New Facility falls below (i)&#160;the greater of $5.0&#160;million or 15% of the then-current borrowing base for a period of more than five consecutive Business Days or (ii)&#160;$3.5&#160;million. During a cash dominion period, the Company is required to comply with a consolidated fixed charge coverage ratio of not less than 1:00:1:00. The fixed charge coverage ratio is calculated on a consolidated basis for Lantheus Intermediate and its subsidiaries for a trailing four fiscal quarter period basis, as (i)&#160;EBITDA minus capital expenditures minus certain restricted payments divided by (ii)&#160;interest plus taxes paid or payable in cash plus certain restricted payments made in cash plus scheduled principal payments paid or payable in cash.</font></p> <p style="FONT-FAMILY: times;"><font size="2"><i>Financing Costs</i></font></p> <p style="FONT-FAMILY: times;"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;LMI incurred and capitalized approximately $15.6&#160;million in direct financing fees including $5.2&#160;million associated with the New Restricted Notes issued in March 2011, consisting primarily of underwriting fees and expenses, consent solicitation fee, legal fees, accounting fees and printing costs in connection with the issuance of the New Restricted Notes, the Existing Notes and the Old Facility. 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