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Newell Rubbermaid Inc. 2007 Annual Report
59
FOOTNOTE 10
Long-Term Debt
The following is a summary of long-term debt as of December 31, (in millions):
2007 2006
Medium-term notes (original maturities ranging from 7 to 30 years, average interest rate of 5.48%) $1,075.0 $1,325.0
Commercial paper 197.0
—
Floating rate note 448.0 448.0
Junior convertible subordinated debentures 436.7 436.7
Terminated interest rate swaps 8.5 11.9
Other long-term debt 4.4 4.3
Total debt 2,169.6 2,225.9
Current portion of long-term debt (972.2) (253.6)
Long-term debt $1,197.4 $1,972.3
The following table summarizes the Company’s average commercial paper obligations and interest rate for the year ended December 31,
(in millions, except percentages):
2007 2006
Borrowing $147.3 $178.4
Average interest rate 5.3% 5.0%
The aggregate maturities of long-term debt outstanding, based on the earliest date the obligation may become due, are as follows as of
December 31, 2007 (in millions):
2008 2009 2010 2011 2012 Thereafter Total
$972.2 $252.7 $252.4 $2.4 $250.8 $439.1 $2,169.6
The medium-term notes, revolving credit agreement (and related commercial paper), floating rate note and junior convertible subordinated
debentures are all unsecured.
Medium-Term Notes
In July 1998, the Company issued $250.0 million of medium-term notes. The notes mature in July 2028 and interest is paid semi-annually. The notes have
a coupon rate reset feature through a remarketing agreement that occurs at two ten year intervals, July 2008 and July 2018. The notes currently have a
coupon rate of 6.35% through the first interest reset date of July 2008. In addition, the notes have an embedded call option pursuant to which a third party
may call the debt at par at each ten-year remarketing interval, and the third party would remarket the notes if the call option is exercised. Should the call
option at each remarketing interval not be exercised, the note holders are required to put the notes back to the Company at a price of par. If the third party
exercises the call option, remarketing of the notes will occur, which may result in the Company paying an increased coupon rate in the future.
In July 1998, the Company also issued $75.0 million of medium-term notes. The notes mature in July 2028, and interest is paid semi-annually. The
notes have a coupon rate of 6.11%, which is fixed through maturity. The note holders have a put option which entitles the holders of the notes to require the
Company to repay the notes at par in July 2008.
The Company has issued three additional series of medium-term notes with aggregate principal amounts of $250.0 million each. The medium-term
notes have coupon rates ranging from 4% to 6.75% and mature at various dates between 2009 and 2012.