First Data 2013 Annual Report Download - page 43

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Short-term borrowings, net $ (109.6) $ 99.1 $(107.3)
Accrued interest funded upon issuance of notes 48.7 6.5 —
Debt modification proceeds (payments) and related financing costs (59.0) 10.8 (39.7)
Principal payments on long-term debt (92.2) (83.3)(104.5)
Proceeds from sale-leaseback transactions —13.8 14.2
Distributions and dividends paid to noncontrolling interests and redeemable
noncontrolling interest (224.5)(261.9)(327.3)
Contributions from noncontrolling interests — — 0.8
Purchase of noncontrolling interests (23.7) (25.1) —
Capital contributed by Parent 6.5 — —
Redemption of Parent’s redeemable common stock (8.3)(1.7)(0.5)
Cash dividends (28.0) (6.7) (0.2)
Net cash used in financing activities $(490.1)$(248.5)$(564.5)
Short-term borrowings, net. The cash activity related to short-term borrowings in 2013, 2012 and 2011 resulted primarily from net borrowings and
paydowns on FDC’s international credit lines used principally to prefund settlement activity.
As of December 31, 2013, FDC’s senior secured revolving credit facility had commitments from financial institutions to provide $1,016.2 million of
credit and matures on September 24, 2016. Besides the letters of credit discussed below, FDC had no amount outstanding against this facility as of December
31, 2013 and 2012. Therefore, as of December 31, 2013, $969.9 million remained available under this facility. Excluding the letters of credit, the maximum
amount outstanding against this facility during 2013 was approximately $352 million while the average amount outstanding during 2013 was approximately
$51 million.
FDC utilizes its revolving credit facility on a short-term basis to fund investing or operating activities when cash flows from operating activities are not
sufficient. The Company believes the capacity under its senior secured revolving credit facility will be sufficient to meet its short-term liquidity needs. FDC’s
senior secured revolving credit facility can be used for working capital and general corporate purposes.
There are multiple institutions that have commitments under this facility with none representing more than approximately 21% of the remaining
capacity.
Accrued interest funded upon issuance of notes. In conjunction with issuing debt in December 2013, FDC received $55.2 million in cash related to
accrued interest on the notes which were issued mid-coupon period. The interest will be paid in the first quarter of 2014.
Debt modification (payments) proceeds and related financing costs. FDC’s debt modifications and amendments noted above were accounted for as
modifications resulting in only the net effect of the transactions, including payment of capitalized fees, being reflected as a source or use of cash excluding
certain fees included in the Company’s results of operations.
Amounts paid in 2011 included $18.6 million in fees related to the December 2010 debt exchange.
Principal payments on long-term debt. In conjunction with the debt modifications and amendments discussed above, proceeds from the issuance of
new notes were used to prepay portions of the principal balances of FDC’s senior secured term loans which satisfied the future quarterly principal payments
under the senior secured credit facility.
During 2013 and 2011, FDC paid notes totaling $16.1 million and $32.6 million, respectively. No payments were made in 2012.
Payments for capital leases totaled $76.1 million, $80.2 million and $71.9 million for 2013, 2012 and 2011, respectively.
As of March 7, 2014, FDC’s long-term corporate family rating from Moody’s was B3 (stable). The long-term local issuer credit rating from Standard
and Poor’s was B (stable). The long-term issuer default rating from Fitch was B (stable). The Company’s current level of debt may impair its ability to get
additional funding beyond its revolving credit facility if needed.
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