Starwood 2007 Annual Report Download - page 150

Note 14. Debt
Long-term debt and short-term borrowings consisted of the following (in millions):
2007 2006
December 31,
Senior Credit Facilities:
Revolving Credit Facility, interest rates ranging from 4.70% to 7.25% at December 31,
2007, maturing 2011 (5.58% at December 31, 2007) .......................... $ 787 $ 435
Term loan, interest at LIBOR + 0.50%, (5.37% at December 31, 2007) maturing 2009
and 2010 .......................................................... 1,000 —
Senior Notes, interest rates of 7.875%, maturing 2012 (at December 31, 2006, also had
interest at 7.375%, maturing 2007)......................................... 792 1,481
Sheraton Holding public debt, interest at 7.375%, maturing in 2015 .................. 449 449
Senior Notes, interest at 6.25%, maturing 2013 ................................. 400 —
Mortgages and other, interest rates ranging from 5.85% to 8.56%, various maturities...... 167 267
3,595 2,632
Less current maturities ................................................... (5) (805)
Long-term debt ......................................................... $3,590 $1,827
Aggregate debt maturities for each of the years ended December 31 are as follows (in millions):
2008 ........................................................................ $ 5
2009 ........................................................................ 543
2010 ........................................................................ 505
2011 ........................................................................ 792
2012 ........................................................................ 798
Thereafter..................................................................... 952
$3,595
On September 13, 2007 the Company completed a public offering of $400 million 6.25% Senior Notes
(“6.25% Notes”) due February 13, 2013. The Company received net proceeds of approximately $396 million, which
were used to reduce the outstanding borrowings under its Revolving Credit Facility. Interest on the 6.25% Notes is
payable semi-annually on February 15 and August 15. At any time, we may redeem all or a portion of the
6.25% Notes at the Company’s option at a price equal to the greater of (1) 100% of the aggregate principal plus
accrued and unpaid interest and (2) the sum of the present values of the remaining scheduled payments of principal
and interest discounted at the redemption rate on a semi-annual basis at the Treasury rate plus 35 basis points, plus
accrued and unpaid interest. The 6.25% Notes rank parri passu with all other unsecured and unsubordinated
obligations. Upon a change in control of the Company, the holders of the 6.25% Notes will have the right to require
repurchase of the respective Notes at 101% of the principal amount plus accrued and unpaid interest. Certain
covenants in the 6.25% Notes include restrictions on liens, sale and leaseback transactions, mergers, consolidations
and sale of assets.
On June 29, 2007, the Company entered into a credit agreement that provides for two term loans of
$500 million each. One term loan matures on June 29, 2009, and the other matures on June 29, 2010. Proceeds
from these loans were used to repay balances under the existing Revolving Credit Facility (established under the
2006 Facility referenced below), which remains in effect. The Company may prepay the outstanding aggregate
principal amount, in whole or in part, at any time. The covenants in this credit agreement are the same as those in the
Company’s existing Revolving Credit Facility.
F-30
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)