Mondelez 2012 Annual Report Download - page 76

Table of Contents
On October 2, 2012 our $150 million Canadian dollar variable rate loan matured. The loan and accrued interest to date were repaid
with cash from operations.
On October 1, 2012, approximately $10 billion of debt on our balance sheet at September 30, 2012 was transferred to or retained
by Kraft Foods Group. As described below, the debt primarily included: $6.0 billion of senior unsecured notes issued on June 4,
2012; $3.6 billion of debt exchanged on July 18, 2012; and $400 million migrated on October 1, 2012. See Note 2, Divestitures and
Acquisitions,
for additional information regarding the Spin-Off and liabilities transferred in the divestiture of Kraft Foods Group.
On October 1, 2012, in connection with the Spin-Off and related debt capitalization plan, a $400 million 7.55% senior unsecured
note was retained by Kraft Foods Group. No cash was generated from the transaction.
On July 18, 2012, we completed a debt exchange in which $3.6 billion of our debt held by third-party note holders was exchanged
for notes issued by Kraft Foods Group in order to migrate debt to Kraft Foods Group in connection with our Spin-Off capitalization
plan. No cash was generated from the exchange and we incurred one-time financing costs of $18 million which we recorded in
interest expense. As a result of the exchange, we retired the following debt:
On June 4, 2012, Kraft Foods Group issued $6.0 billion of senior unsecured notes and distributed $5.9 billion of net proceeds to us
in connection with the Spin-Off capitalization plan. We used the proceeds to pay $3.6 billion of outstanding commercial paper
borrowings and expect to use the remaining cash proceeds to pay down additional debt over time or for general corporate
purposes. This debt and approximately $260 million of related deferred financing costs were retained by Kraft Foods Group in the
Spin-Off.
On June 1, 2012, $900 million of our 6.25% notes matured. The notes and accrued interest to date were repaid using primarily
commercial paper borrowings which were subsequently repaid from $5.9 billion net proceeds received from the Kraft Foods Group
$6.0 billion notes issuance on June 4, 2012.
On March 20, 2012, € 2.0 billion of our 5.75% bonds matured. The bonds and accrued interest to date were repaid using proceeds
from the issuance of commercial paper which was subsequently repaid in June 2012 as discussed above.
On January 10, 2012, we issued $800 million of floating rate notes which bear interest at a rate equal to the three-month London
Inter-Bank Offered Rate (“LIBOR”)
plus 0.875%. We received net proceeds of $798.8 million from the issuance. The notes were set
to mature on July 10, 2013 or subject to a mandatory redemption tied to the public announcement of the Record Date for the Spin-
Off. After announcing the Record Date, on September 24, 2012, the notes were redeemed at a redemption price equal to 100% of
the aggregate principal amount of the notes, or $800 million, plus accrued interest of $2 million with cash on hand.
On November 1, 2011, $1.1 billion of our 5.625% notes matured. The notes and accrued interest to date were repaid with cash
from operations.
Fair Value:
The fair value of our short-term borrowings at December 31, 2012 and December 31, 2011 reflects current market interest rates
and approximates the amounts we have recorded on our consolidated balance sheet. The fair value of our long-term debt was
determined using quoted prices in active markets for the publicly traded debt obligations (Level 1 valuation data). At December 31,
2012, the aggregate fair value of our total debt was $22,946 million and its carrying value was $19,425 million. At December 31,
2011, the aggregate fair value of our total debt was $31,113 million and its carrying value was $26,931 million.
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•
$
596 million of our 6.125% Notes due in February 2018
•
$
439 million of our 6.125% Notes due in August 2018
• $900 million of our 5.375% Notes due in February 2020
• $233 million of our 6.875% Notes due in January 2039
• $290 million of our 6.875% Notes due in February 2038
• $185 million of our 7.000% Notes due in August 2037
• $170 million of our 6.500% Notes due in November 2031 and
• $787 million of our 6.500% Notes due in 2040.