Snapple 2010 Annual Report Download - page 95

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The senior unsecured credit facility contains customary negative covenants that, among other things, restrict the
Company’s 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 the Company 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, the Company
was in compliance with all financial covenant requirements.
Commercial Paper Program
On December 10, 2010, the Company entered into a commercial paper program under which the Company 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. The Company may issue Commercial Paper from time to time for general corporate purposes and the program
is supported by the Revolver. Outstanding Commercial Paper reduces the amount of borrowing capacity available under the
Revolver. As of December 31, 2010, the Company has no outstanding Commercial Paper.
Long-Term Debt Maturities
As of December 31, 2010, the aggregate amounts of required principal payments on long-term obligations, excluding
capital leases, are as follows (in millions):
2011
2012
2013
2014
2015
Thereafter
$ 400
450
250
—
—
974
Capital Lease Obligations
Long-term capital lease obligations totaled $10 million and $13 million as of December 31, 2010 and 2009, respectively.
Current obligations related to the Company’s capital leases were $3 million as of December 31, 2010 and 2009 and were
included as a component of accounts payable and accrued expenses.
Shelf Registration Statement
On November 20, 2009, the Company's Board authorized the Company to issue up to $1,500 million of debt securities.
Subsequently, the Company 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. The
Company issued senior unsecured notes of $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, the Company issued senior unsecured notes of $500 million on January 11, 2011, as
described in Note 27 - Subsequent Events, which left $150 million previously authorized by the Board to be issued.
Letters of Credit Facility
Effective June 2010, the Company 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.
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