Computer Associates 2010 Annual Report Download - page 82

Note 8 — debt
Credit facilities
As of March 31, 2010 and 2009, the Company’s committed bank credit facilities consisted of a $1 billion, unsecured bank
revolving credit facility.
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
2010 2009
ASOF MARCH 31,
2008 Revolving Credit Facility (expires August 2012) $ 1,000 $ 250 $ 1,000 $ 750
2008 Revolving credit facility
In August 2007, the Company entered into an unsecured revolving credit facility (the 2008 Revolving Credit Facility). The
maximum committed amount available under the 2008 Revolving Credit Facility is $1 billion, exclusive of incremental credit
increases of up to an additional $500 million, which are available subject to certain conditions and the agreement of its
lenders. Total interest expense relating to borrowings under the 2008 Revolving Credit Facility for fiscal years 2010, 2009 and
2008 was approximately $5 million, $24 million and $44 million, respectively.
Borrowings under the 2008 Revolving Credit Facility bear interest at a rate dependent on the Company’s credit ratings at the
time of such borrowings and are calculated according to a base rate or a Eurocurrency rate, as the case may be, plus an
applicable margin and utilization fee. The applicable margin for a base rate borrowing is 0.0% and, depending on the
Company’s credit rating, the applicable margin for a Eurocurrency borrowing ranges from 0.27% to 0.875%. Also, depending
on the Company’s credit rating at the time of the borrowing, the utilization fee can range from 0.10% to 0.25% for
borrowings over 50% of the total commitment. At the Company’s credit ratings as of March 31, 2010, the applicable margin
was 0% for a base rate borrowing and 0.350% for a Eurocurrency borrowing, and the utilization fee was 0.1%. As of
March 31, 2010, the weighted average interest rate on the Company’s outstanding borrowings was 3.18%. Based on the
Company’s credit ratings as of March 31, 2009, the applicable margin was 0% for a base rate borrowing and 0.425% for a
Eurocurrency borrowing, and the utilization fee was 0.1%. As of March 31, 2009, the weighted average interest rate on the
Company’s outstanding borrowings was 2.72%. In addition, the Company must pay facility commitment fees quarterly at
rates dependent on its credit ratings. The facility commitment fees can range from 0.080% to 0.375% of the final allocated
amount of each Lender’s full revolving credit commitment (without taking into account any outstanding borrowings under
such commitments). Based on the Company’s credit ratings as of March 31, 2010 and 2009, the facility commitment fee was
0.100% and 0.125%, respectively, of the $1 billion committed amount.
The 2008 Revolving Credit Facility contains financial and non-financial covenants and negative covenants. The financial
covenants include: (i) for the 12 months ending each quarter-end, the ratio of consolidated debt for borrowed money to
consolidated cash flow, each as defined in the 2008 Revolving Credit Facility, must not exceed 4.00 to 1.00; and (ii) for the
12 months ending each quarter-end, the ratio of consolidated cash flow to the sum of interest payable on, and amortization
of debt discount in respect of, all consolidated debt for borrowed money, as defined in the 2008 Revolving Credit Facility,
must not be less than 5.00 to 1.00. As of March 31, 2010, the Company is in compliance with the financial and other
covenants. In addition, as a condition precedent to each borrowing made under the 2008 Revolving Credit Facility, as of the
date of such borrowing, (i) no event of default shall have occurred and be continuing and (ii) the Company is to reaffirm that
the representations and warranties made by the Company in the 2008 Revolving Credit Facility other than those
representations and warranties that referred to a specified date or period.
During fiscal year 2010, the Company repaid $500 million of the outstanding borrowings under the 2008 Revolving Credit
Facility with proceeds from the 5.375% Senior Notes due November 2019.
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