First Data 2007 Annual Report Download - page 121

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
On September 24, 2007, in conjunction with the merger, the Company repurchased debt as follows:
(in millions)
Principal
Amount
Repurchased
Medium-term note due 2007 $ 59.8
Medium-term note due 2008 26.9
3.375% Notes due 2008 431.9
3.90% Notes due 2009 87.5
4.50% Notes due 2010 137.3
5.625% Notes due 2011 115.7
4.70% Notes due 2013 428.6
4.85% Notes due 2014 338.3
4.95% Notes due 2015 360.9
$ 1,986.9
In combination with the September debt repurchases, the Company terminated the interest rate swaps associated with these debt instruments. The
Company incurred a fee of $6.0 million in connection with this debt repurchase as well as an $11.2 million charge representing the premium paid for consent
from holders to modify terms of the Company's debt they held. The gains and losses resulting from the debt repurchases were included in the "Other income
(expense)" line of the Consolidated Statements of Income.
In December 2007, the Company paid off its medium-term note due in 2008 for $25.6 million.
In September 2006, the Company paid off senior notes in the amount of $650 million. In November and December 2006, the Company re-purchased
approximately $1.7 billion of its long-term debt with proceeds from the spin-off.
Debt Issuances
On September 24, 2007, the Company entered into $22.0 billion of new debt instruments in conjunction with the merger. The senior unsecured cash-
pay term loan facility, senior unsecured PIK term loan facility and senior subordinated unsecured term loan facility are discussed more fully below and
represent bridge financing (the "bridge facilities"). The Company anticipates it may issue note securities to replace these bridge facilities on or before one year
from the transaction date. In October 2007, $2.2 billion of the senior unsecured cash-pay term loan facility was repaid upon issuance of 9.875% senior
unsecured cash pay notes due 2015, as discussed more fully below.
Fees totaling $555.0 million associated with the merger have been capitalized as deferred financing costs and are reported in the "Other assets" line of
the Consolidated Balance Sheet. Approximately $112.5 million of fees were incurred and capitalized on the bridge facilities of which $27.5 million was
subsequently recovered upon repayment of the $2.2 billion of senior unsecured cash-pay term loan facility. The terms of the bridge facilities provide for the
repayment of all or a diminishing portion of the fees, depending upon timing, if the bridge facilities are refinanced in less than a year (currently, 50% of fees
paid on bridge facilities are recoverable upon refinancing through May 21, 2008 and 25% are recoverable thereafter through September 24, 2008). The
Company will incur additional underwriting fees when the bridge facilities are refinanced of which $44.0 million was incurred upon issuance of $2.2 billion
of senior unsecured cash-pay notes and is included in the $555.0 million balance noted above. The deferred financing costs are being amortized using the
interest method over the term of the respective debt, with a weighted-average period of six years.
Senior Secured Revolving Credit Facility and Senior Secured Term Loan Facility
The Company entered into a $2.0 billion senior secured revolving credit facility with a term of six years. The Company drew $200.0 million against the
senior secured revolving credit facility at the time of the merger and $60.0 million was outstanding at December 31, 2007. The Company also entered into a
$13.0 billion senior secured term loan facility with a term of seven years. At the merger date, the Company drew $11,775 million in the form of U.S. dollar
denominated loan and $1,000 million in the form of euro denominated loan (709.2 million euro). The remainder, $225 million, was available in the form of a
delayed draw term loan facility in an amount approximately equal to existing notes remaining outstanding after the tender offers described above were
completed. The delayed draw term loan facility may be drawn as the remaining notes are repaid (of which approximately $26 million was drawn in December
2007 when existing notes were repaid).
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