Notes to Financial Statements
NOTE 21—Related Parties
The Company paid a one-time transaction fee in 1998 aggregating
$20 million and will pay an aggregate annual management fee
of $1 million to certain affiliates of THL. In exchange for
the transaction fee, THL and its affiliates provided equity
commitments for the Recapitalization, arranged additional equity
financing, arranged the Recapitalization debt financing and
structured and negotiated the Recapitalization. In return for
the annual management fee, THL, and certain of its affiliates,
provide consulting and management advisory services. Additionally,
in connection with the Recapitalization and the related debt
financings, the Company paid its other equity investors (excluding
management) one-time fees aggregating approximately $35 million
in 1998.
One of the Company’s equity investors is a financial
institution that provides financing to the Company at
terms that are considered to be at arm’s length.
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