Kohl's 2015 Annual Report Download - page 53

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Table of Contents



Long-term debt consists of the following unsecured senior debt:








2021 4.81%
4.00%
 
$ 650
2023 3.25%
3.25%

350
2023 4.78%
4.75%

300
2025 4.25%
4.25%

—
2029 7.36%
7.25%
200
2033 6.05%
6.00%

300
2037 6.89%
6.88%

350
2045 5.57%
5.55%

—
2017 n/a
n/a
650
4.88%

2,800
Unamortized debt discount
(7)
Deferred financing costs 
(13)
Long-term debt  
$ 2,780
Based on quoted market prices (Level 1 per ASC No. 820, "Fair Value Measurements and Disclosures"), the estimated fair value of our long-term debt
was $2.8 billion at January 30, 2016 and $3.1 billion at January 31, 2015.
During 2015, we completed a cash tender offer and redemption for $1,085 million of senior unsecured debt. We recognized a $169 million loss on
extinguishment of debt which included a $163 million bond tender premium paid to holders of the debt and a $6 million non-cash write-off of deferred
financing costs and original issue discounts associated with the extinguished debt.
In July 2015, we issued $650 million of 4.25% notes due in July 2025 and $450 million of 5.55% notes due in July 2045. Both notes include semi-
annual, interest-only payments which began January 17, 2016. Proceeds of the issuances and cash on hand were used to pay the principal, premium and
accrued interest of the debt which was settled in July and August 2015.
In July 2015, we entered into an Amended and Restated Credit Agreement with various lenders which provides for a $1.0 billion senior unsecured five-
year revolving credit facility that will mature in June 2020. Among other things, the agreement includes a maximum leverage ratio financial covenant (which
is consistent with the ratio under our prior credit agreement) and restrictions on liens and subsidiary indebtedness. As of January 30, 2016 and January 31,
2015, there were no outstanding balances on the revolving credit facility. We borrowed $400 million during the third quarter of 2015 with an effective
interest rate of 1.27% and repaid the entire balance in the fourth quarter.
Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of January 30, 2016, we
were in compliance with all covenants of the various debt agreements.
We also have outstanding trade letters of credit and stand-by letters of credit totaling approximately $35 million at January 30, 2016, issued under
uncommitted lines with two banks.
F-14