Ingram Micro 2008 Annual Report Download - page 69

Note 6 — Long-Term Debt
The Company’s debt consists of the following:
2008 2007
Fiscal Year End
North American revolving trade accounts receivable-backed financing
facilities ................................................ $ 69,000 $ 387,500
Asia-Pacific revolving trade accounts receivable-backed financing
facilities ................................................ 29,035 —
Senior unsecured term loan . ................................... 261,754 —
Revolving unsecured credit facilities and other debt .................. 118,599 135,616
478,388 523,116
Current maturities of long-term debt ............................. (121,724) (135,616)
$ 356,664 $ 387,500
The Company has a revolving trade accounts receivable-backed financing program in the U.S., which provides
for up to $600,000 in borrowing capacity secured by substantially all U.S.-based receivables. The interest rate on
this facility is dependent on designated commercial paper rates plus a predetermined margin. At January 3, 2009
and December 29, 2007, the Company had borrowings of $69,000 and $387,500, respectively, under this revolving
trade accounts receivable-backed financing program in the U.S. At the Company’s option, the program may be
increased to as much as $650,000 at any time prior to its maturity date of July 2010.
The Company has two revolving trade accounts receivable-backed financing facilities in EMEA, which
individually provide for borrowing capacity of up to Euro 107 million, or approximately $148,000, and
Euro 230 million, or approximately $319,000, at January 3, 2009. Both facilities are with a financial institution
that has an arrangement with a related issuer of third-party commercial paper. These European facilities require
certain commitment fees, and borrowings under both facilities incur financing costs at designated commercial paper
rates plus a predetermined margin. At January 3, 2009 and December 29, 2007, the Company had no borrowings
under these European revolving accounts receivable-backed financing facilities. During the fourth quarter of 2008,
the Euro 230 million facility was extended to March 2009 at a reduced borrowing capacity amount of Euro 132 mil-
lion, effective in January 2009. The Euro 107 million facility matures in July 2010.
The Company also has two revolving trade accounts receivable facilities in EMEA, which individually provide
for a maximum borrowing capacity of 60 million British pound sterling, or approximately $87,000, and
Euro 90 million, or approximately $125,000, respectively, at January 3, 2009. At January 3, 2009 and December 29,
2007, the Company had no borrowings outstanding under these European factoring facilities. These facilities
mature in March 2010.
The Company has a multi-currency revolving trade accounts receivable-backed financing facility in Asia-
Pacific, which provides for up to 210 million Australian dollars, or approximately $149,000, at January 3, 2009 of
borrowing capacity. The interest rate is dependent upon the currency in which the drawing is made and is related to
the local short-term bank indicator rate for such currency. At January 3, 2009 and December 29, 2007, the Company
had borrowings of $29,035 and $0 under this Asia-Pacific multi-currency revolving accounts receivable-backed
financing facility. During the fourth quarter of 2008, in addition to reducing the borrowing capacity of this facility
from its earlier 250 million Australian dollars capacity, the Company extended the maturity date to September 2011.
The Company’s ability to access financing under all of its trade accounts receivable-backed financing
programs, as discussed above, is dependent upon the level of eligible trade accounts receivable as well as
continued covenant compliance. The Company may experience a lower level of eligible trade accounts receivable
resulting from declines in sales volumes or failure to meet certain defined eligibility criteria for the trade accounts
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INGRAM MICRO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)