AT&T Wireless 2014 Annual Report Download - page 58

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
56 | AT&T INC.
part, amounts committed by the lenders in excess of any
outstanding advances; however, we cannot reinstate any
such terminated commitments. At December 31, 2014,
we had no advances outstanding under either agreement
and were in compliance with all covenants under each
agreement.
Advances under both agreements would bear interest, at
AT&T’s option, either:
• at a variable annual rate equal to (1) the highest of:
(a) the base (or prime) rate of the bank affiliate of
Citibank, N.A. which is serving as administrative agent
under the Agreement, (b) 0.50% per annum above
the Federal funds rate, and (c) the London Interbank
Offered Rate (LIBOR) applicable to U.S. dollars for
a period of one month plus 1.00% per annum, plus
(2) an applicable margin, as set forth in the Agreement
(Applicable Margin; each such advance, a Base Rate
Advance); or
• at a rate equal to: (i) the LIBOR for a period of one, two,
three or six months, as applicable, plus (ii) the Applicable
Margin (each such advance, a Eurodollar Rate Advance).
The Applicable Margin for a Eurodollar Rate Advance under
both agreements will equal 0.565%, 0.680%, or 0.910%
per annum, depending on AT&T’s credit rating. The
Applicable Margin for a Base Rate Advance under both
agreements will be 0%.
Under each agreement, AT&T will pay a facility fee of
0.060%, 0.070% or 0.090% per annum, depending on AT&T’s
credit rating, of the amount of lender commitments.
Both agreements contain covenants that are customary
for an issuer with an investment grade senior debt credit
rating. Among other covenants, both agreements provide
that AT&T will maintain, as of the last day of each fiscal
quarter, a debt-to-EBITDA (earnings before interest,
income taxes, depreciation and amortization, and other
modifications described in the agreements) ratio of not
more than 3-to-1, for the four quarters then ended.
Events of default under both agreements are customary
for facilities of this nature and result in the acceleration or
permit the lenders to accelerate, as applicable, required
repayment and would increase the Applicable Margin by
2.00% per annum.
The obligations of the lenders under the December 2017
Facility to provide advances will terminate on
December 11, 2017, unless prior to that date either:
(i) AT&T, and if applicable, a Co-Borrower, reduce to $0
the commitments of the lenders, or (ii) certain events of
default occur. We and lenders representing more than
Debt Refinancing
During 2014, we received net proceeds of $15,926 from
the issuance of $16,013 in long-term debt in various
markets, with an average weighted maturity of
approximately 13 years and a weighted average coupon
of 2.4%. We redeemed $10,400 in borrowings of various
notes with stated rates of 0.875% to 7.75%.
On January 29, 2015, we issued $2,619 of 4.600% global
notes due 2045.
As of December 31, 2014 and 2013, we were in compliance
with all covenants and conditions of instruments governing
our debt. Substantially all of our outstanding long-term
debt is unsecured. Maturities of outstanding long-term
notes and debentures, as of December 31, 2014, and the
corresponding weighted-average interest rate scheduled
for repayment are as follows:
There-
2015 2016 2017 2018 2019 after
Debt
repayments1 $6,482 $5,523 $6,508 $5,800 $6,348 $54,205
Weighted-
average
interest rate 4.0% 2.1% 2.4% 4.6% 3.7% 4.9%
1 Debt repayments assume putable debt is redeemed by the holders at the next
opportunity.
Credit Facilities
We have a $5,000 revolving credit agreement with a
syndicate of banks that expires in December 2018
(the “December 2018 Facility”) and a $3,000 revolving
credit agreement with a syndicate of banks that expires in
December 2017 (the “December 2017 Facility”). In addition,
on January 21, 2015, we entered into a $9,155 credit
agreement (the “Syndicated Credit Agreement”) containing
(i) a $6,286 term loan facility (the “Tranche A Facility”) and
(ii) a $2,869 term loan facility (the “Tranche B Facility”),
with certain investment and commercial banks and
Mizuho Bank, Ltd. (“Mizuho”), as administrative agent.
On that date, AT&T also entered into a $2,000 18-month
credit agreement (the “18-Month Credit Agreement”) with
Mizuho as initial lender and agent.
Revolving Credit Agreements
In the event advances are made under either the
December 2018 Facility or the December 2017 Facility,
those advances would be used for general corporate
purposes. Advances are not conditioned on the absence
of a material adverse change. All advances must be repaid
no later than the date on which lenders are no longer
obligated to make any advances under each agreement.
Under each agreement, we can terminate, in whole or in