Honeywell 2007 Annual Report Download - page 104

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
default include: (a) non-payment of credit agreement debt, interest or fees; (b) non-compliance with the terms of
the credit agreement covenants; (c) cross-default to other debt in certain circumstances; (d) bankruptcy; and (e)
defaults upon obligations under Employee Retirement Income Security Act. Additionally, each of the banks has
the right to terminate its commitment to lend additional funds or issue letters of credit under the agreement if any
person or group acquires beneficial ownership of 30 percent or more of our voting stock, or, during any 12-month
period, individuals who were directors of Honeywell at the beginning of the period cease to constitute a majority
of the Board of Directors (the Board).
Loans under the $2.8 billion credit facility are required to be repaid no later than May 14, 2012. We have
agreed to pay a facility fee of 0.05 percent per annum on the aggregate commitment.
Interest on borrowings under the $2.8 billion credit facility would be determined, at Honeywell's option, by (a)
an auction bidding procedure; (b) the highest of the floating base rate publicly announced by Citibank, N.A., 0.5
percent above the average CD rate, or 0.5 percent above the Federal funds rate; or (c) the Eurocurrency rate
plus 0.15 percent (applicable margin).
The facility fee, the applicable margin over the Eurocurrency rate and the letter of credit issuance fee, are
subject to change, based upon a grid determined by our long term debt ratings. The credit agreement is not
subject to termination based upon a decrease in our debt ratings or a material adverse change.
In March 2007, the Company issued $400 million of 5.30% Senior Notes due 2017 and $600 million 5.70%
Senior Notes due 2037 (collectively, the "Notes"). The Notes are senior unsecured and unsubordinated
obligations of Honeywell and rank equally with all of Honeywell's existing and future senior unsecured debt and
senior to all Honeywell's subordinated debt. The offering resulted in gross proceeds of $1 billion, offset by $12
million in discount and issuance costs.
In July 2007, the Company issued $500 million Floating Rate Senior Notes due 2009 and $400 million
5.625% Senior Notes due 2012 (collectively, the "Senior Notes"). The Senior Notes are senior unsecured and
unsubordinated obligations of Honeywell and rank equally with all of Honeywell's existing and future senior
unsecured debt and senior to all Honeywell's subordinated debt. The offering resulted in gross proceeds of $900
million, offset by $3 million in discount and issuance costs.
In the first quarter of 2007, the Company repaid $350 million of its 7.0% Notes, primarily through issuance of
the Notes. The proceeds from the Senior Notes were used to repay commercial paper.
Note 15—Lease Commitments
Future minimum lease payments under operating leases having initial or remaining noncancellable lease
terms in excess of one year are as follows:
At December 31,
2007
2008 $ 327
2009 233
2010 164
2011 120
2012 77
Thereafter 264
$ 1,185
We have entered into agreements to lease land, equipment and buildings. Principally all our operating leases
have initial terms of up to 25 years, and some contain renewal options subject to customary conditions. At any
time during the terms of some of our leases, we may at our option
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