Equifax 2010 Annual Report Download - page 53

5. DEBT
Debt outstanding at December 31, 2010 and 2009 was as follows:
December 31,
(In millions) 2010 2009
Commercial paper $— $ 135.0
Note, 4.25%, due in installments
through May 2012 4.7 7.6
Notes, 7.34%, due in installments
through May 2014 60.0 75.0
Notes, 4.45%, due December 2014 275.0 275.0
Notes, 6.30%, due July 2017 272.5 272.5
Debentures, 6.90%, due July 2028 125.0 125.0
Notes, 7.00%, due July 2037 250.0 250.0
Borrowings under long-term revolving
credit facilities, weighted-average
rate of 0.9% in 2009 —4.8
Capitalized lease obligation 2.0 29.0
Other 1.0 3.1
Total debt 990.2 1,177.0
Less short-term debt and
current maturities (20.7) (183.2)
Less unamortized discounts (2.1) (2.4)
Plus fair value adjustments 11.5 (0.5)
Total long-term debt, net of discount $978.9 $ 990.9
Scheduled future maturities of debt at December 31, 2010, are as
follows:
Years ending December 31,
(In millions) Amount
2011 $ 19.9
2012 17.8
2013 15.0
2014 290.0
2015 —
Thereafter 647.5
Total debt $990.2
Senior Credit Facility. We are party to an $850.0 million senior
unsecured revolving credit facility, which we refer to as the Senior
Credit Facility, with a group of financial institutions. Borrowings may
be used for general corporate purposes, including working capital,
capital expenditures, acquisitions and share repurchase programs.
Availability of the Senior Credit Facility for borrowings is reduced by
the outstanding face amount of any letters of credit issued under the
facility and, pursuant to our existing Board of Directors authorization,
by the outstanding principal amount of our commercial paper, or CP,
notes. The Senior Credit Facility was scheduled to expire in
July 2011. On February 18, 2011, we extended the maturity date and
reduced the borrowing limits of the Senior Credit Facility from
$850.0 million to $500.0 million under the Second Amended and
Restated Credit Agreement (the ‘‘Amended Agreement’’). For
additional information about the Amended Agreement, see Note 15
of the Notes to Consolidated Financial Statements.
Under our Senior Credit Facility, we must comply with various
financial and non-financial covenants. The financial covenants require
us to maintain a maximum leverage ratio, defined as consolidated
funded debt divided by consolidated EBITDA (as set forth in the
Senior Credit Facility) for the preceding four quarters, of not more
than 3.5 to 1.0. Compliance with this financial covenant is tested
quarterly. The non-financial covenants include limitations on liens,
cross defaults, subsidiary debt, mergers, liquidations, asset disposi-
tions and acquisitions. As of December 31, 2010, we were in
compliance with our covenants under the Senior Credit Facility. Our
borrowings under this facility, which have not been guaranteed by
any of our subsidiaries, are unsecured and will rank on parity in right
of payment with all of our other unsecured and unsubordinated
indebtedness from time to time outstanding.
At December 31, 2010, interest was payable on borrowings under
the existing credit facility at the base rate or London Interbank
Offered Rate, or LIBOR, plus a specified margin. The annual facility
fee, which we pay regardless of borrowings, and interest rate are
subject to adjustment based on our debt ratings. As of December 31,
2010, $848.3 million was available for borrowings and there were no
outstanding borrowings under the Senior Credit Facility, which is
included in long-term debt on our Consolidated Balance Sheet.
While the underlying final maturity date of this facility is July 2011, it
is structured to provide borrowings under short-term loans. Since
these borrowings primarily have a maturity of thirty days, the
borrowings and repayments are presented on a net basis within
the financing activities portion of our Consolidated Statements of
Cash Flows as net (repayments) borrowings under long-term
revolving credit facilities.
CP Program. Our $850.0 million CP program has been established
through the private placement of CP notes from time-to-time, in
which borrowings bear interest at either a variable rate (based on
LIBOR or other benchmarks) or a fixed rate, with the applicable rate
and margin. Maturities of CP can range from overnight to 397 days.
Since the CP program is backstopped by our Senior Credit Facility,
the amount of CP which may be issued under the program is
reduced by the outstanding face amount of any letters of credit
issued under the facility and, pursuant to our existing Board of
Directors authorization, by the outstanding borrowings under our
Senior Credit Facility. At December 31, 2010, there were no
outstanding borrowings under this program. On February 18, 2011,
under the terms of the Amended Agreement, we reduced the size of
the CP Program, which is supported by the Senior Credit Facility,
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