Starwood 2008 Annual Report Download - page 148

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Note 15. Debt
Long-term debt and short-term borrowings consisted of the following (in millions):
2008 2007
December 31,
Senior Credit Facilities:
Revolving Credit Facilities, interest rates of 2.32% at December 31, 2008,
maturing 2011 ...................................................... $ 213 $ 787
Term loan, interest rates ranging from 1.88% to 2.69% at December 31,2008, maturing
2009 and 2010 (2.35% at December 31, 2008) .............................. 1,375 1,000
Senior Notes, interest at 7.875%, maturing 2012 ................................ 799 792
Senior Notes (former Sheraton Holding notes), interest at 7.375%, maturing 2015........ 449 449
Senior Notes, interest at 6.25%, maturing 2013 ................................. 601 400
Senior Notes, interest at 6.75%, maturing 2018 ................................. 400 —
Mortgages and other, interest rates ranging from 5.80% to 8.56%, various maturities...... 171 167
4,008 3,595
Less current maturities ................................................... (506) (5)
Long-term debt ......................................................... $3,502 $3,590
Aggregate debt maturities for each of the years ended December 31 are as follows (in millions):
2009 ........................................................................ $ 506
2010 ........................................................................ 505
2011 ........................................................................ 596
2012 ........................................................................ 847
2013 ........................................................................ 653
Thereafter .................................................................... 901
$4,008
Due to the current credit liquidity crisis, the Company evaluated the commitments of each of the lenders in its
revolving credit facilities. Based on this review, the Company does not anticipate any issues regarding the
availability of funds under the revolving credit facilities.
The Company maintains lines of credit under which bank loans and other short-term debt are drawn. In
addition, smaller credit lines are maintained by the Company’s foreign subsidiaries. The Company had approx-
imately $1.585 billion of available borrowing capacity under its domestic and foreign lines of credit as of
December 31, 2008. The short-term borrowings at December 31, 2008 and 2007 were insignificant.
The Company is subject to certain restrictive debt covenants under its short-term borrowing and long-term debt
obligations including defined financial covenants, limitations on incurring additional debt, escrow account funding
requirements for debt service, capital expenditures, tax payments and insurance premiums, among other restric-
tions. The Company was in compliance with all of the short-term and long-term debt covenants at December 31,
2008.
For adjustable rate debt, fair value approximates carrying value due to the variable nature of the interest rates.
For non-public fixed rate debt, fair value is determined based upon discounted cash flows for the debt at rates
deemed reasonable for the type of debt and prevailing market conditions and the length to maturity for the debt. The
estimated fair value of debt at December 31, 2008 and 2007 was $3.2 billion and $3.7 billion, respectively, and was
determined based on quoted market prices and/or discounted cash flows.
F-32
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS — (Continued)