Pitney Bowes 2014 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2014 Pitney Bowes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

PITNEY BOWES INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tabular dollars in thousands, except per share amounts)
66
During the first quarter of 2014, we completed a cash tender offer (the Tender Offer) for a portion of the 5.75% Notes due 2017 and the
5.25% Notes due 2037 (the Subject Notes). Holders who validly tendered their notes received the principal amount of the notes tendered,
all accrued and unpaid interest and a premium amount. An aggregate $500 million of the Subject Notes were tendered. We incurred
expenses of $62 million, consisting of the call premium, the write-off of unamortized costs and bank transaction fees.
To fund the Tender Offer, also in the first quarter of 2014, we issued $500 million of 4.625% fixed rate 10-year notes. Interest is payable
in March and September. The notes mature in March 2024, but may be redeemed, at any time, in whole or in part, at our option, at par
plus accrued interest. If the notes are redeemed prior to December 15, 2023, the redemption price will be equal to the sum of 100% of
the principal amount, accrued and unpaid interest and a make-whole payment. Net proceeds from the issuance of the notes were $493
million.
In October 2014, we received a loan from the State of Connecticut Department of Economic and Community Development (CT DECD).
The loan consists of a $15 million development loan and $1 million jobs-training grant that is subject to refund if certain conditions are
not met. The loan requires monthly interest payments through November 2020 and principal and interest payments from December 2020
through maturity in November 2024.
The 5.25% Notes due November 2022 and 6.7% Notes due March 2043 may be redeemed, at our option, in whole or in part, at par plus
accrued interest any time on or after November 2015 and March 2018, respectively.
The 5.25% Notes due 2037 may be redeemed by bondholders, in whole or in part, at par plus accrued interest in January 2017.
Term loans bear interest at the applicable London Interbank Offered Rate plus 2.25% or Prime Rate plus 1.25%, at our option. Interest
is payable and resets quarterly and the loans mature in 2015 and 2016. In 2014, we repaid $100 million of the term loans. At December 31,
2014, the weighted-average interest rate of the term loans was 2.48%.
There were no outstanding commercial paper borrowings at December 31, 2014 or 2013. As of December 31, 2014, we had not drawn
upon our $1.0 billion credit facility. The credit facility was renewed in January 2015 and expires in January 2020.
Annual maturities of outstanding debt at December 31, 2014 are as follows:
2015 $ 324,879
2016 450,914
2017 385,109
2018 600,000
2019 300,000
Thereafter 1,166,041
Total $ 3,226,943