Starwood 2011 Annual Report Download - page 148

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
NOTES TO FINANCIAL STATEMENTS
Aggregate debt maturities for each of the years ended December 31 are as follows (in millions):
2012 ............................................................................... $ 3
2013 ............................................................................... 505
2014 ............................................................................... 502
2015 ............................................................................... 455
2016 ............................................................................... 39
Thereafter ........................................................................... 693
$2,197
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
approximately $1.5 billion of available borrowing capacity under its domestic and foreign lines of credit as of
December 31, 2011. The short-term borrowings under these lines of credit at December 31, 2011 and 2010 were
de minimus.
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, ability to pay
dividends, escrow account funding requirements for debt service, capital expenditures, tax payments and
insurance premiums, among other restrictions. The Company was in compliance with all of the short-term and
long-term debt covenants at December 31, 2011.
During the year ended December 31, 2011, the Company entered into a credit agreement which provided a
loan of approximately $38 million, which is due in 2016, and is secured by one of its owned hotels. Proceeds
from this loan were used to pay off an existing credit agreement that was due in 2012.
During the year ended December 31, 2011, the Company redeemed all of the outstanding 7.875% Senior
Notes due 2012, which had a principal amount of approximately $605 million. In connection with this
transaction, the Company terminated two interest rate swaps related to the 7.875% Senior Notes, which had
notional amounts totaling $200 million (see Note 23). As a result of the early redemption of the 7.875% Senior
Notes, the Company recorded a net charge of approximately $16 million in interest expense, net of interest
income line item in its statement of income, representing the tender premiums, swap settlements and other related
redemption costs.
During the year ended December 31, 2011, the Company sold its interest in a consolidated joint venture
which resulted in the buyer assuming approximately $57 million of the Company’s mortgage debt.
During the year ended December 31, 2011, the Company entered into two interest rate swaps with a total
notional amount of $100 million, whereby the Company pays floating and receives fixed interest rates (see Note
23).
On April 20, 2010, the Company entered into a $1.5 billion senior credit facility. The facility matures on
November 15, 2013 and replaces the previous $1.875 billion revolving credit agreement, which would have
matured on February 11, 2011. The new facility includes an accordion feature under which the Company may
increase the revolving loan commitment by up to $375 million subject to certain conditions and bank
commitments. The multi-currency facility enhances the Company’s financial flexibility and is expected to be
used for general corporate purposes. The Company had no borrowings under the senior credit facility and $171
million of letters of credit outstanding as of December 31, 2011.
F-31