Honeywell 2009 Annual Report Download - page 104

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
The schedule of principal payments on long-term debt is as follows:
At December 31,
2009
2010 $ 1,018
2011 520
2012 406
2013 605
2014 606
Thereafter 4,109
7,264
Less—current portion (1,018)
$ 6,246
We maintain a $2.8 billion five year committed revolving credit facility with a group of banks, arranged by
Citigroup Global Markets Inc. and J.P.Morgan Securities Inc. which is in place through mid-May 2012. This credit
facility contains a $700 million sub-limit for the issuance of letters of credit. The $2.8 billion credit facility is
maintained for general corporate purposes, including support for the issuance of commercial paper. We had no
borrowings outstanding or letters of credit issued under the credit facility at December 31, 2009.
The credit agreement does not restrict our ability to pay dividends and contains no financial covenants. The
failure to comply with customary conditions or the occurrence of customary events default contained in the credit
agreement would prevent any further borrowings and would generally require the repayment of any outstanding
borrowings under the credit agreement. Such events of 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 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 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 February 2009, the Company issued $600 million 3.875% Senior Notes due 2014 and $900 million 5.00%
Senior Notes due 2019 (collectively, the "2009 Senior Notes"). The 2009 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 of Honeywell's subordinated debt. The offering resulted in gross proceeds of
$1.5 billion, offset by $12 million in discount and issuance costs.
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