Radio Shack 2009 Annual Report Download - page 68

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61
NOTE 5 - INDEBTEDNESS AND BORROWING FACILITIES
Long-Term Debt:
December 31,
(In millions) 2009 2008
Five year 2.5% unsecured convertible notes due in 2013 $ 375.0 $ 375.0
Ten-year 7.375% unsecured note payable due in 2011 306.8 350.0
Other 1.0 1.0
682.8 726.0
Unamortized debt discounts and other costs (59.4) (73.2)
Basis adjustment due to interest rate swaps 4.4 6.7
Total long-term debt $ 627.8 $ 659.5
Long-term borrowings outstanding at December 31, 2009, mature as follows:
Long-Term
(In millions) Borrowings
2010 $ --
2011 306.8
2012 --
2013 375.0
2014 1.0
2015 and thereafter --
Total $ 682.8
2013 Convertible Notes: In August 2008, we issued $375 million principal amount of convertible senior
notes due August 1, 2013, (the “2013 Convertible Notes”) in a private offering to qualified institutional
buyers under SEC Rule 144A. The 2013 Convertible Notes were issued at par and bear interest at a rate
of 2.50% per annum. Interest is payable semiannually, in arrears, on February 1 and August 1.
Each $1,000 of principal of the 2013 Convertible Notes is initially convertible, under certain
circumstances, into 41.2414 shares of our common stock (or a total of approximately 15.5 million shares),
which is the equivalent of $24.25 per share, subject to adjustment upon the occurrence of specified
events set forth under terms of the 2013 Convertible Notes. Upon conversion, we would pay the holder
the cash value of the applicable number of shares of our common stock, up to the principal amount of the
note. Amounts in excess of the principal amount, if any, (the “excess conversion value”) may be paid in
cash or in stock, at our option. Holders may convert their 2013 Convertible Notes into common stock on
the net settlement basis described above at any time from May 1, 2013, until the close of business on
July 29, 2013, or if, and only if, one of the following conditions has been met:
• During any calendar quarter, and only during such calendar quarter, in which the closing price of
our common stock for at least 20 trading days in the period of 30 consecutive trading days ending
on the last trading day of the preceding calendar quarter exceeds 130% of the conversion price
per share of common stock in effect on the last day of such preceding calendar quarter
• During the five consecutive business days immediately after any 10 consecutive trading day
period in which the average trading price per $1,000 principal amount of 2013 Convertible Notes
was less than 98% of the product of the closing price of the common stock on such date and the
conversion rate on such date
• We make specified distributions to holders of our common stock or specified corporate
transactions occur
The 2013 Convertible Notes were not convertible at the holders' option at any time during 2009.
Holders who convert their 2013 Convertible Notes in connection with a change in control may be entitled
to a make-whole premium in the form of an increase in the conversion rate. In addition, upon a change in
control, liquidation, dissolution or delisting, the holders of the 2013 Convertible Notes may require us to