Snapple 2012 Annual Report Download - page 84

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
66
The 2020 and 2022 Notes
On November 20, 2012, the Company completed the issuance of $500 million aggregate principal amount of senior unsecured
notes consisting of $250 million aggregate principal amount of the 2020 Notes and $250 million aggregate principal amount of
the 2022 Notes. The discount associated with these notes was approximately $3 million. The net proceeds from the issuance were
used to repay the aggregate principal amount of the 2012 Notes at maturity and for general corporate purposes.
The 2019 and 2021 Notes
On November 15, 2011, the Company completed the issuance of $500 million aggregate principal amount of senior unsecured
notes consisting of $250 million aggregate principal amount of the 2019 Notes and $250 million aggregate principal amount of
the 2021 Notes. The discount associated with these notes was approximately $1 million. The net proceeds from the issuance were
used to repay the aggregate principal amount of the 1.70% senior notes due December 21, 2011 at maturity and for general corporate
purposes.
The 2016 Notes
On January 11, 2011, the Company completed the issuance of $500 million aggregate principal amount of the 2016 Notes at
a discount of $1 million. The net proceeds from the issuance were used to replace a portion of the cash used to purchase the 2018
Notes tendered pursuant to the tender offer described below.
The 2012 Notes
On December 21, 2009, the Company completed the issuance of $450 million of the 2012 Notes. The net proceeds from the
issuance were used for repayment of existing indebtedness. The repayment of the 2012 Notes occurred on December 21, 2012, at
maturity.
The 2013, 2018 and 2038 Notes
On April 30, 2008, the Company completed the issuance of $1,700 million aggregate principal amount of senior unsecured
notes consisting of $250 million aggregate principal amount of the 2013 Notes, $1,200 million aggregate principal amount of the
2018 Notes and $250 million aggregate principal amount of the 2038 Notes.
In December 2010, the Company completed a tender offer for a portion of the 2018 Notes and retired, at a premium, an
aggregate principal amount of approximately $476 million. The aggregate principal amount of the outstanding 2018 Notes was
$724 million as of December 31, 2012, and 2011.
BORROWING ARRANGEMENTS
Termination of the Prior Senior Unsecured Credit Facility -
The Company's senior unsecured credit agreement, which was amended and restated on April 11, 2008, was terminated on
September 25, 2012. There were no principal borrowings outstanding under this facility as of December 31, 2011.
Execution of the New Unsecured Credit Agreement
On September 25, 2012, the Company entered into a new five-year unsecured credit agreement (the "Credit Agreement"),
which provides for a $500 million revolving line of credit (the "Revolver"). Borrowings under the Revolver bear interest at a
floating rate per annum based upon the alternate base rate ("ABR") or the Eurodollar rate, in each case plus an applicable margin
which varies based upon the Company's debt ratings. Rates range from 0.000% to 0.300% for ABR loans and from 0.795% to
1.300% for Eurodollar loans. The ABR is defined as the greater of (a) JPMorgan Chase Bank's prime rate, (b) the federal funds
effective rate plus 0.500% and (c) the adjusted LIBOR for a one month interest period. The adjusted LIBOR is the London interbank
offered rate for dollars adjusted for a statutory reserve rate set by the Board of Governors of the Federal Reserve System of the
United States of America.
Additionally, the Revolver is available for the issuance of letters of credit and swingline advances not to exceed $75 million
and $50 million, respectively. Swingline advances will accrue interest at a rate equal to the ABR plus the applicable margin. Letters
of credit and swingline advances will reduce, on a dollar for dollar basis, the amount available under the Revolver.