Henry Schein 2012 Annual Report Download - page 84
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Please find page 84 of the 2012 Henry Schein annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(in thousands, except per share data)
74
Note 5 – Debt – (Continued)
Private Placement Facilities
On August 10, 2010, we entered into $400 million private placement facilities with two insurance companies.
On April 30, 2012, we increased our available credit facilities by $375 million by entering into a new agreement
with one insurance company and amending our existing agreements with two insurance companies. These facilities
are available on an uncommitted basis at fixed rate economic terms to be agreed upon at the time of issuance, from
time to time during a three year issuance period, through April 26, 2015. The facilities allow us to issue senior
promissory notes to the lenders at a fixed rate based on an agreed upon spread over applicable treasury notes at the
time of issuance. The term of each possible issuance will be selected by us and can range from five to 15 years
(with an average life no longer than 12 years). The proceeds of any issuances under the facilities will be used for
general corporate purposes, including working capital and capital expenditures, to refinance existing indebtedness
and/or to fund potential acquisitions. The agreement provides, among other things, that we maintain certain
maximum leverage ratios, and contains restrictions relating to subsidiary indebtedness, liens, affiliate transactions,
disposal of assets and certain changes in ownership. These facilities contain a make-whole provision in the event
that we pay off the facility prior to the due date.
The components of our private placement facility borrowings as of December 29, 2012 are presented in the
following table:
Amount of
Borrowing Borrowing
Date of Borrowing Outstanding Rate Due Date
September 2, 2010 $100,000 3.79 % September 2, 2020
January 20, 2012 50,000 3.45 January 20, 2024
January 20, 2012 (1) 50,000 3.09 January 20, 2022
December 24, 2012 50,000 3.00 December 24, 2024
$250,000
(1) Annual repayments of approximately $7.1 million for this borrowing will commence on January 20, 2016.