Harley Davidson 2014 Annual Report Download - page 79

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Debt with a contractual term greater than one year is generally classified as long-term debt and consisted of the following
as of December€31 (in thousands):€
2014 2013
Secured debt
Asset-backed Canadian commercial paper conduit facility $166,912 $174,241
Term asset-backed securitization debt 1,271,533 1,256,632
Unsecured notes
5.75% Medium-term notes due in 2014 ($500.0 million par value) — 499,866
1.15% Medium-term notes due in 2015 ($600.0 million par value) 599,817 599,543
3.88% Medium-term notes due in 2016 ($450.0 million par value) 449,937 449,883
2.70% Medium-term notes due in 2017 ($400.0 million par value) 399,963 399,946
1.55% Medium-term notes due in 2017 ($400.0 million par value) 399,464 —
6.80% Medium-term notes due in 2018 ($888.0 million par value) 887,381 909,742
2.40% Medium-term notes due in 2019 ($600.0 million par value) 597,836 —
15.00% Senior unsecured notes due in 2014 ($600.0 million par value) — 303,000
Gross long-term debt 4,772,843 4,592,853
Less: current portion of long-term debt (1,011,315)(1,176,140)
Long-term debt $3,761,528 $3,416,713
Commercial paper maturities may range up to 365 days from the issuance date. The weighted-average interest rate of
outstanding commercial paper balances was 0.30% and 0.23% at December€31, 2014 and 2013, respectively.
On April€7, 2014, the Company entered into a new $675.0 million five-year credit facility to refinance and replace a $675
million four-year credit facility that was due to mature in April 2015. The new five-year credit facility matures in April 2019.
The Company also has a $675.0 million five-year credit facility which matures in April 2017. The new five-year credit facility
and the existing five-year credit facility (together, the Global Credit Facilities) bear interest at various variable interest rates,
which may be adjusted upward or downward depending on certain criteria, such as credit ratings. The Global Credit Facilities
also require the Company to pay a fee based upon the average daily unused portion of the aggregate commitments under the
Global Credit Facilities. The Global Credit Facilities are committed facilities and primarily used to support the Company's
unsecured commercial paper program. At December€31, 2014 and 2013, the Company had no outstanding borrowings under the
Global Credit Facilities.
In September€2014, the Company amended and restated its revolving facility (U.S. Conduit) with an asset-backed U.S.
commercial paper conduit which provides for a total aggregate commitment of $600.0 million. At December€31, 2014 and
2013, the Company had no outstanding borrowings under the U.S. Conduit. Refer to Note 6 for further discussion on the U.S.
Conduit.
In June 2014, the Company amended its revolving facility agreement (Canadian Conduit) with a Canadian bank-
sponsored asset-backed commercial paper conduit. Under the agreement, the Canadian Conduit is contractually committed, at
the Company's option, to purchase from the Company eligible Canadian retail motorcycle financial receivables for proceeds up
to C$200 million. During 2014 and 2013, the Company transferred $97.1 million and $101.1 million, respectively, of Canadian
retail motorcycle finance receivables for proceeds of $85.0 million and $88.6 million, respectively. Approximately $44.6
million and $38.6 million of the debt was classified as current portion of long-term debt at December€31, 2014 and 2013. Refer
to Note 6 for further discussion on the Canadian Conduit.
During 2014, the Company issued $850.0 million of secured notes through one term asset-backed securitization
transaction. During 2013, the Company issued $650.0 million of secured notes through one term asset-backed securitization
transaction. Additionally, during 2012, the Company issued $89.5 million of secured notes through the sale of notes that had
been previously retained as part of the December 2009, August 2011, and November 2011 term asset-backed securitization
transactions. These notes were sold at a premium, and at December€31, 2014 and 2013, the unaccreted premium associated with
these notes was $0.2 million and $0.5 million, respectively. Approximately $366.9 million and $334.6 million of the obligations
under the secured notes were classified as current at December€31, 2014 and 2013, respectively, based on the contractual
maturities of the restricted finance receivables. The term-asset backed securitization transactions are further discussed in Note
6.
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