Snapple 2010 Annual Report Download - page 60

The senior unsecured credit facility contains customary negative covenants that, among other things, restrict our ability to
incur debt at subsidiaries that are not guarantors; incur liens; merge or sell, transfer, lease or otherwise dispose of all or
substantially all assets; make investments, loans, advances, guarantees and acquisitions; enter into transactions with affiliates;
and enter into agreements restricting its ability to incur liens or the ability of subsidiaries to make distributions. These
covenants are subject to certain exceptions described in the senior credit agreement. In addition, the senior unsecured credit
facility requires us to comply with a maximum total leverage ratio covenant and a minimum interest coverage ratio covenant,
as defined in the senior credit agreement. The senior unsecured credit facility also contains certain usual and customary
representations and warranties, affirmative covenants and events of default. As of December 31, 2010, we were in compliance
with all covenant requirements.
The balance of principal borrowings under the Revolver was $0 and $405 million as of December 31, 2010 and 2009,
respectively. Issuance of letters of credits utilized $12 million and $41 million as of December 31, 2010 and 2009, respectively,
which left $488 million and $63 million available for additional borrowings and letters of credit as of December 31, 2010.
Commercial Paper Program
On December 10, 2010, we entered into a commercial paper program under which we may issue unsecured commercial
paper notes (the “Commercial Paper”) on a private placement basis up to a maximum aggregate amount outstanding at any time
of $500 million. The maturities of the Commercial Paper will vary, but may not exceed 364 days from the date of issue, and is
supported by the Revolver. We may issue Commercial Paper from time to time for general corporate purposes. Outstanding
Commercial Paper reduces the amount of borrowing capacity available under the Revolver. We did not issue any Commercial
Paper during the year ended December 31, 2010.
Shelf Registration Statement
On November 20, 2009, our Board of Directors (the “Board”) authorized us to issue up to $1,500 million of debt securities.
Subsequently, we filed a "well-known seasoned issuer" shelf registration statement with the Securities and Exchange
Commission, effective December 14, 2009, which registers an indeterminable amount of debt securities for future sales. We
issued $850 million in 2009, as described in the section “Senior Unsecured Notes — The 2011 and 2012 Notes” above. At
December 31, 2010, $650 million remained authorized to be issued following the issuance described above.
Subsequent to December 31, 2010, we issued senior unsecured notes of $500 million, as described in the section "Senior
Unsecured Notes - The 2016 Notes" above, which left $150 million previously authorized by the Board to be issued.
Letters of Credit Facility
Effective June 2010, we entered into a Letter of Credit Facility in addition to the portion of the Revolver reserved for
issuance of letters of credit. Under the Letter of Credit Facility, $65 million is available for the issuance of letters of credit, of
which $39 million was utilized as of December 31, 2010. The balance available for additional letters of credit was $26 million
as of December 31, 2010.
Liquidity
Based on our current and anticipated level of operations, we believe that our proceeds from operating cash flows will be
sufficient to meet our anticipated obligations for the next twelve months. To the extent that our operating cash flows are not
sufficient to meet our liquidity needs, we may utilize cash on hand or amounts available under our Revolver.
The following table summarizes our cash activity for 2010, 2009 and 2008 (in millions):
Net cash provided by operating activities
Net cash (used in) provided by investing activities
Net cash used in financing activities
For the Year Ended December 31,
2010
$ 2,535
(225)
(2,280)
2009
$ 865
(251)
(554)
2008
$ 709
1,074
(1,625)
40