Morgan Stanley 1999 Annual Report Download - page 71

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restrictive covenants which require, among other things, that MSIL
maintain specified levels of Shareholder’s Equity and Financial
Resources, each as defined. At November 30, 1999, no borrowings
were outstanding under the MSIL Facility.
On June 7, 1999, MSDWJL, the Company’s Tokyo-based
broker-dealer subsidiary, entered into a committed revolving credit
facility, guaranteed by the Company, that provides funding to sup-
port general liquidity needs, including support of MSDWJL’s unse-
cured borrowings (the “MSDWJL Facility’’). Under the terms of the
MSDWJL Facility, a syndicate of banks is committed to provide up
to 60 billion Japanese yen. At November 30, 1999, no borrowings
were outstanding under the MSDWJL Facility.
Riverwoods Funding Corporation (“RFC”), an entity included
in the consolidated financial statements of the Company, maintains a
senior bank credit facility to support the issuance of asset-backed
commercial paper in the amount of $2.6 billion. Under the terms of
the asset-backed commercial paper program, certain assets of RFC
were subject to a lien in the amount of $2.6 billion at November 30,
1999. RFC has never borrowed from its senior bank credit facility.
The Company anticipates that it will utilize the MSDW
Facility, the MS&Co. Facility, the MSIL Facility or the MSDWJL
Facility for short-term funding from time to time.
6LONG-TERM BORROWINGS
MATURITIES AND TERMS
Long-term borrowings at fiscal year-end consist of the following:
U.S. DOLLAR NON-U.S. DOLLAR(1) AT NOVEMBER 30
INDEX/
FIXED FLOATING EQUITY FIXED FLOATING 1999 1998
(dollars in millions) RATE RATE(2) LINKED RATE RATE(2) TOTAL TOTAL
Due in fiscal 1999 $ — $ — $ — $ — $ — $ — $ 5,031
Due in fiscal 2000 1,619 3,081 928 62 1,212 6,902 6,863
Due in fiscal 2001 1,947 2,217 536 139 782 5,621 3,899
Due in fiscal 2002 1,440 1,260 156 115 1,070 4,041 2,501
Due in fiscal 2003 1,093 1,034 137 347 207 2,818 2,895
Due in fiscal 2004 2,306 465 293 113 28 3,205 580
Thereafter 4,113 741 238 643 282 6,017 5,666
Total $12,518 $8,798 $2,288 $1,419 $3,581 $28,604 $27,435
Weighted average coupon at fiscal
year-end 6.5)% 6.0)% n/a 5.4)% 3.2)%5.9% 6.1)%
(1) Weighted average coupon was calculated utilizing non-U.S. dollar interest rates.
(2) U.S. dollar contractual floating rate borrowings bear interest based on a variety of money market indices, including London Interbank Offered Rates (“LIBOR”) and Federal Funds
rates. Non-U.S. dollar contractual floating rate borrowings bear interest based on euro floating rates.
MEDIUM-TERM NOTES
Included in the table above are medium-term notes of $15,724
million and $17,011 million at November 30, 1999 and 1998.
The effective weighted average interest rate on all medium-term
notes was 5.3% in fiscal 1999 and 5.7% in fiscal 1998. Maturities
of these notes range from fiscal 2000 through fiscal 2028.
STRUCTURED BORROWINGS
U.S. dollar index/equity linked borrowings include various struc-
tured instruments whose payments and redemption values are
linked to the performance of a specific index (e.g., Standard &
Poor’s 500), a basket of stocks or a specific equity security. To min-
imize the exposure resulting from movements in the underlying
equity position or index, the Company has entered into various