Pizza Hut 2008 Annual Report Download - page 199

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Note 12 – Short-term Borrowings and Long-term Debt
2008 2007
Short-term Borrowings
Current maturities of long-term debt $ 15 $ 268
Other 10 20
$ 25 $ 288
Long-term Debt
Unsecured International Revolving Credit Facility, expires November 2012 $ — $ 2
8
Unsecured Revolving Credit Facility, expires November 2012 299
—
Senior, Unsecured Term Loan, due July 2011 375
—
Senior, Unsecured Notes, due May 2008 — 25
0
Senior, Unsecured Notes, due April 2011 648 64
8
Senior, Unsecured Notes, due July 2012 399 39
9
Senior, Unsecured Notes, due April 2016 300 30
0
Senior, Unsecured Notes, due March 2018 598 59
8
Senior, Unsecured Notes, due November 2037 597 59
7
Capital lease obligations (See Note 13) 234 28
2
Other, due through 2019 (11%) 70 73
3,520 3,17
5
Less current maturities of long-term debt (15 ) (26
8
)
Long-term debt excluding SFAS 133 adjustment 3,505 2,90
7
Derivative instrument adjustment under SFAS 133 (See Note 14) 59 1
7
Long-term debt including SFAS 133 adjustment $ 3,564 $ 2,92
4
Our primary bank credit agreement comprises a $1.15 billion syndicated senior unsecured revolving credit facility (the
“Credit Facility”) which matures in November 2012 and includes 23 participating banks with commitments ranging from
$20 million to $113 million. Under the terms of the Credit Facility, we may borrow up to the maximum borrowing limit,
less outstanding letters of credit or banker’s acceptances, where applicable. At December 27, 2008, our unused Credit
Facility totaled $685 million net of outstanding letters of credit of $166 million. There were borrowings of $299 million
outstanding under the Credit Facility at December 27, 2008. The interest rate for borrowings under the Credit Facility
ranges from 0.25% to 1.25% over the London Interbank Offered Rate (“LIBOR”) or is determined by an Alternate Base
Rate, which is the greater of the Prime Rate or the Federal Funds Rate plus 0.50%. The exact spread over LIBOR or the
Alternate Base Rate, as applicable, depends on our performance under specified financial criteria. Interest on any
outstanding borrowings under the Credit Facility is payable at least quarterly.
We also have a $350 million, syndicated revolving credit facility (the “International Credit Facility,” or “ICF”) which
matures in November 2012 and includes 6 banks with commitments ranging from $35 million to $90 million. There was
available credit of $350 million and no borrowings outstanding under the ICF at the end of 2008. The interest rate for
borrowings under the ICF ranges from 0.31% to 1.50% over LIBOR or is determined by a Canadian Alternate Base Rate,
which is the greater of the Citibank, N.A., Canadian Branch’s publicly announced reference rate or the “Canadian Dollar
Offered Rate” plus 0.50%. The exact spread over LIBOR or the Canadian Alternate Base Rate, as applicable, depends
upon YUM’s performance under specified financial criteria. Interest on any outstanding borrowings under the ICF is
payable at least quarterly.
Form 10-K