ADT 2007 Annual Report Download - page 165

$4.0 billion. The additional commitments expire on, and any borrowings under the facility would
mature on, November 25, 2008. The facility may only be used to repay, settle or otherwise extinguish
the public debt described above, which is the subject of ongoing litigation between us and The Bank of
New York. For more information regarding such litigation, see Item 3. Legal Proceedings—Indenture
Trustee Litigation.
Additionally, on April 25, 2007, we, certain of our subsidiaries and a syndicate of banks entered
into three unsecured revolving credit facilities with an initial aggregate commitment amount of
$2.5 billion that increased to $4.25 billion at the time of the Separation. Of the aggregate commitment
amount of $4.25 billion, a $1.25 billion commitment is available to us, and a $1.5 billion commitment
was available to each of Covidien and Tyco Electronics. We will use the revolving credit facilities for
working capital, capital expenditures and other corporate purposes. We initially guaranteed the new
revolving credit facilities and Covidien and Tyco Electronics each assumed our obligations with respect
to their revolving credit facilities upon the Separation. We no longer guarantee those assumed amounts.
At September 28, 2007, we have borrowed $308 million under our unsecured revolving credit facility.
This facility has a variable interest rate based on LIBOR. The margin over LIBOR payable by TIFSA
can vary based on changes in our credit rating.
The unsecured revolving credit facilities replaced TIGSA’s existing $1.0 billion 5-year revolving
credit facility and $1.5 billion 3-year revolving bank credit facility, which were terminated by June 1,
2007 prior to their scheduled expiration dates of December 16, 2009 and December 21, 2007,
respectively. On the date of termination, no amounts were borrowed under these facilities.
TIFSA’s bank credit agreements contain customary terms and conditions, and financial covenants
that limit the ratio of our debt to our earnings before interest, taxes, depreciation, and amortization
and that limit our ability to incur subsidiary debt or grant liens on our property. Our indentures contain
customary covenants including limits on negative pledges, subsidiary debt and sale/leaseback
transactions. None of these covenants are considered restrictive to our business. We believe we are in
compliance with all of our debt covenants. The Bank of New York, as indenture trustee under
indentures dated as of June 9, 1998 and November 12, 2003, is contesting whether the Separation
transactions were permitted under such indentures. See Item 3. Legal Proceedings—Indenture Trustee
Litigation.
The following table details our long-term debt ratings at September 28, 2007 and September 29,
2006:
2007 2006
Moody’s ............................................ Baa1 Baa3
Standard & Poor’s ..................................... BBB BBB+
Fitch .............................................. BBB BBB+
The security ratings set forth above are not a recommendation to buy, sell or hold securities and
may be subject to revision or withdrawal by the assigning rating organization. Each rating should be
evaluated independently of any other rating.
2007 Financials 73