3M 2014 Annual Report Download - page 81

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Maturities of Long-term Debt
Maturities of long-term debt for the five years subsequent of December 31, 2014 are as follows (in millions):
After
2015 2016 2017 2018 2019 2019
Total
$
55 $
1,109 $
745 $
608 $
622 $
3,647 $
6,786
Long-term debt payments due in 2015, 2016 and 2017 include floating rate notes totaling $55 million (classified as current
portion of long-term debt), $71 million (included in other borrowings in the long-term debt table) and $96 million (included
as a separate floating rate note in the long-term debt table), respectively, as a result of put provisions associated with
these debt instruments.
Credit Rating / Five-Year Revolving Credit Facility
As of February 2015, the Company has an AA- credit rating, with a stable outlook, from Standard & Poor’s and an Aa3
credit rating, with a negative outlook, from Moody’s Investors Service. In August 2014, 3M amended and extended the
existing $1.5 billion five-year revolving credit facility expiring in September 2017 to a $2.25 billion five-year agreement
expiring in August 2019. This credit agreement includes a provision under which 3M may request an increase of up to
$2.25 billion, bringing the total facility up to $4.5 billion (at the lender’s discretion). This facility was undrawn at December
31, 2014. Under the $2.25 billion credit agreement, the Company is required to maintain its EBITDA to Interest Ratio as of
the end of each fiscal quarter at not less than 3.0 to 1. This is calculated (as defined in the agreement) as the ratio of
consolidated total EBITDA for the four consecutive quarters then ended to total interest expense on all funded debt for the
same period. At December 31, 2014, this ratio was approximately 60 to 1. Debt covenants do not restrict the payment of
dividends.
Other Credit Facilities
In December 2012, 3M entered into a three-year 66 million British Pound (approximately $106 million) committed credit
facility agreement with JP Morgan Chase Bank, which was fully drawn as of December 31, 2012. 3M repaid 36 million
British Pounds in the first quarter of 2014, with the remaining balance of 30 million British Pounds repaid in December
2014 (reference L in the preceding debt table). Apart from the committed facilities, an additional $219 million in stand-
alone letters of credit and $18 million in bank guarantees were also issued and outstanding at December 31, 2014. These
lines of credit are utilized in connection with normal business activities.
Long-Term Debt
The following provides additional discussion concerning 3M’s long-term debt, with a reference back to the preceding debt
table.
2014 Long-Term Debt Issuances (Ref. C, G1, G2, H, K)
The Company has a “well-known seasoned issuer” shelf registration statement, effective May 16, 2014, which registers an
indeterminate amount of debt or equity securities for future sales. This replaced 3M’s previous shelf registration dated
August 5, 2011. In June 2014, in connection with the May 16, 2014, shelf registration, 3M re-commenced its medium-term
notes program (Series F) under which 3M may issue, from time to time, up to $9 billion aggregate principal amount of
notes. Included in this $9 billion are $2.25 billion of notes previously issued in 2011 and 2012 as part of Series F. In June
2014, 3M issued $625 million aggregate principal amount of five-year fixed rate medium-term notes due 2019 with a
coupon rate of 1.625%. Upon debt issuance, the Company entered into an interest rate swap to convert $600 million of
this amount to an interest rate based on a floating three-month LIBOR index. In addition, in June 2014, 3M issued $325
million aggregate principal amount of thirty-year fixed rate medium-term notes due 2044 with a coupon rate of 3.875%. In
November 2014, the Company issued 500 million Euros aggregate principal amount of four-year floating rate medium-
term notes due 2018 with an interest rate based on a floating three-month EURIBOR index, and also issued 750 million
Euros aggregate principal amount of twelve-year fixed rate medium-term notes due 2026 with a coupon rate of 1.5%. Both
June 2014 and November 2014 debt issuances were from the medium-term notes program (Series F).
2014 Eurobond Maturity (Ref. A1, A2)
In July 2007, 3M issued a seven-year 5.0% fixed rate Eurobond for an amount of 750 million Euros (carrying value of
approximately $1.042 billion in U.S. Dollars at December 31, 2013). In addition, in December 2007, 3M reopened its
existing seven year 5.0% fixed rate Eurobond for an additional amount of 275 million Euros (carrying value of
approximately $382 million in U.S. Dollars at December 31, 2013). This security was issued at a premium and was
subsequently consolidated with the original security in January 2008. Upon the initial debt issuance in July 2007, 3M
completed a fixed-to-floating interest rate swap on a notional amount of 400 million Euros as a fair value hedge of a