Snapple 2014 Annual Report Download - page 41

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Financing Arrangements
The following descriptions represent our available financing arrangements as of December 31, 2014. As of December 31,
2014, we were in compliance with all covenant requirements for our senior unsecured notes, unsecured credit agreement and
commercial paper program.
Commercial Paper Program
On December 10, 2010, we entered into a commercial paper program under which we may issue 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 issuance. We issue Commercial Paper for general
corporate purposes as Commercial Paper is now a more significant part of our overall cash management strategy. The program is
supported by the Revolver (as defined below). Outstanding Commercial Paper reduces the amount of borrowing capacity available
under the Revolver and outstanding amounts under the Revolver reduce the Commercial Paper availability. Under this program,
we had weighted average outstanding commercial paper of $67 million and $62 million during 2014 and 2013, respectively, with
maturities of 90 days or less and a weighted average rate of 0.23% and 0.28% for 2014 and 2013, respectively. As of December 31,
2014, we had no Commercial Paper outstanding. We had $65 million of outstanding Commercial Paper as of December 31, 2013.
Unsecured Credit Agreement
On September 25, 2012, we entered into a 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 our 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 U.S. Federal Reserve System.
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.
The following table provides amounts utilized and available under the Revolver and each sublimit arrangement type as of
December 31, 2014 (in millions):
Amount Utilized Balances Available
Revolver $ — $ 499
Letters of credit 1 74
Swingline advances — 50
The Credit Agreement further provides that we may request at any time, subject to the satisfaction of certain conditions, that
the aggregate commitments under the facility be increased by a total amount not to exceed $250 million.
The Credit Agreement's representations, warranties, covenants and events of default are generally customary for investment
grade credit and include a covenant that requires us to maintain a ratio of consolidated total debt (as defined in the Credit Agreement)
to annualized consolidated EBITDA (as defined in the Credit Agreement) of no more than 3.00 to 1.00, tested quarterly. Upon the
occurrence of an event of default, among other things, amounts outstanding under the Credit Agreement may be accelerated and
the commitments may be terminated. Our obligations under the Credit Agreement are guaranteed by certain of our direct and
indirect domestic subsidiaries on the terms set forth in the Credit Agreement. The Credit Agreement has a maturity date of
September 25, 2017; however, with the consent of lenders holding more than 50% of the total commitments under the Credit
Agreement and subject to the satisfaction of certain conditions, we may extend the maturity date for up to two additional one-year
terms.
An unused commitment fee is payable quarterly to the lenders on the unused portion of the commitments available under the
Revolver equal to 0.08% to 0.20% per annum, depending upon our debt ratings.