First Data 2013 Annual Report Download - page 86

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
average interest rate associated with these arrangements was 3.8% and 3.9% for the years ended December 31, 2013 and 2012, respectively. Commitment fees
for the committed lines of credit range from 0.156% to 0.8%.
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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. The revolving credit facility matures on September 24, 2016. FDC had no borrowings outstanding against
this facility as of December 31, 2013 and December 31, 2012, respectively, other than the letters of credit discussed below. Up to $500 million of the senior
secured revolving credit facility is available for letters of credit (of which $46.3 million and $45.1 million of letters of credit were issued under the facility as
of December 31, 2013 and 2012, respectively). As of December 31, 2013, $969.9 million remained available.
Interest is payable at a rate equal to, at FDC’s option, either (a) LIBOR for deposits in the applicable currency plus an applicable margin or (b) the
higher of (1) the prime rate of Credit Suisse and (2) the federal funds effective rate plus 0.50%, plus an applicable margin. The weighted-average interest rate
was 5.25% for the years ended December 31, 2013 and 2012. The commitment fee rate for the unused portion of this facility is 0.75% per year.
 The Company has amounts outstanding under its senior secured term loan facility under separate tranches as
shown in the table below. A portion of each tranche is denominated in euro with the exception of the September 2018 term loan. Interest is payable based upon
LIBOR or euro LIBOR plus an applicable margin as shown in the table below.
  
   
        
Due September 24, 2014 $ — $ 130.7 LIBOR + 275 bps $ — $ 123.2 euro LIBOR + 275 bps $ — $ 253.9
Due March 24, 2017 $2,414.4 $2,424.2 LIBOR + 400 bps (a) $243.4 $234.4 euro LIBOR + 400 bps (a) $2,657.8 $2,658.6
Due March 24, 2018 $4,229.9 $4,225.1 LIBOR + 400 bps $425.7 $408.2 euro LIBOR + 400 bps $4,655.6 $4,633.3
Due September 24, 2018 $980.5 $728.6 LIBOR + 400 bps (a) $980.5 $728.6
(a) The 2012 rate was LIBOR + 500 bps. The rates shown in the table above reflect the rates in 2013 after debt modifications described below.
As of December 31, 2013, FDC held interest rate swaps to mitigate exposure to variability in interest payments on the outstanding variable rate senior
secured term loan. Refer to Note 6 of these Consolidated Financial Statements for a discussion of the Company’s derivatives.
The original terms of FDC’s senior secured term loan facility required the Company to pay equal quarterly installments in aggregate annual amounts
equal to 1% of the original principal amount. However, in conjunction with debt modifications and amendments over the last several years, proceeds from the
issuance of the notes were used to prepay portions of the principal balances of FDC’s senior secured term loans which satisfied the future quarterly principal
payments. Therefore, the Company made no principal payments during 2012 or 2013.
The senior secured term loan facility also requires mandatory prepayments based on a percentage of excess cash flow generated by FDC. All obligations
under the senior secured loan facility are fully and unconditionally guaranteed by substantially all domestic, wholly-owned material subsidiaries of FDC,
subject to certain exceptions.
 On February 13, 2013, FDC entered into a February 2013 Joinder
Agreement relating to its credit agreement, pursuant to which FDC incurred $258 million in new term loans maturing on September 24, 2018. The interest rate
applicable to the new September 2018 Term Loans is a rate equal to, at FDC’s option, either (a) LIBOR for deposits in U.S. dollars plus 500 basis points or
(b) a base rate plus 400 basis points. FDC used the net cash proceeds from the new term loans to repay all of its outstanding term loan borrowings maturing in
2014 and to pay related fees and expenses.
On April 10, 2013, FDC’s senior secured term loan facility was amended to create a senior secured replacement term loan facility in an aggregate
principal amount equal to the aggregate outstanding principal amount of term loans due in 2017 that then beared interest at a rate per annum equal to, at FDC’s
option, LIBOR Rate plus 500 basis points or a base rate plus 400 basis points. As of April 10, 2013, all of the previously outstanding term loans due in 2017
were exchanged with loans under the new facility which
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