Sunbeam 2010 Annual Report Download - page 44

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
9. Debt
Debt is comprised of the following at December 31, 2010 and 2009:
Senior Notes and Senior Subordinated Notes
In November 2010, the Company completed a registered public offering for $300 aggregate principal amount of 6 1/8% senior notes
due 2022 and received approximately $294 in net proceeds. The net proceeds will be used for general corporate purposes. Beginning
in November 2015, the Company may redeem all or part of these 6 1/8% senior notes due 2022 at specified redemption prices
ranging from approximately 100% to 103% of the principal amount, plus accrued and unpaid interest to the date of redemption.
In January 2010, the Company completed a registered public offering for $492 aggregate principal amount of 7 1/2% senior
subordinated notes due 2020 and received approximately $476 in net proceeds. The offering consisted of two tranches: a U.S.
dollar tranche with aggregate principal amount of $275 and a Euro dollar tranche with aggregate principal amount of C
=150 or
approximately $217. The Company used the net proceeds to repay $250 of the senior secured credit facility term loans, with the
balance used for general corporate purposes. Beginning in January 2015, the Company may redeem all or part of these 7 1/2%
senior subordinated notes due 2020 at specified redemption prices ranging from approximately 100% to 104% of the principal
amount, plus accrued and unpaid interest to the date of redemption. These notes are subject to similar restrictive and financial
covenants as the Company’s existing senior notes and senior subordinated notes.
In September 2010, the Company designated its Euro-denominated 7 1/2% senior subordinated notes due 2020, with an aggregate
principal balance of C
=150 (the “Hedging Instrument”), as a net investment hedge of the foreign currency exposure of its net
investment in certain Euro-denominated subsidiaries. Foreign currency gains and losses on the Hedging Instrument are recorded as
an adjustment to AOCI. See Note 10 for disclosures regarding the Company’s derivative financial instruments.
In April 2009, the Company completed a registered public offering for $300 aggregate principal amount of 8% senior notes due
2016 and received approximately $283 in net proceeds. These net proceeds were used to prepay approximately $283 of the
outstanding principal on the Company’s term loans under its senior secured credit facility (the “Facility”). Beginning in May 2013, the
Company may redeem all or part of these senior notes due 2016 at specified redemption prices ranging from approximately 100%
to 104% of the principal amount, plus accrued and unpaid interest to the date of redemption.
The subordinated note due 2012 (the “Note”) bears annual interest at 2.0% and is payable monthly. The Note is not prepayable
at the Company’s option. The holder of the Note has the option to require redemption of the Note if the closing price of Jarden’s
common stock exceeds $45.32 (subject to adjustment as provided therein) per share for a period of three consecutive trading days.
Senior Secured Credit Facility
At December 31, 2010, the Facility consists of term loans, with payments due through 2015 that bear interest based on three-month
LIBOR plus an applicable margin and a revolving credit facility which matures in 2015 and bears interest at LIBOR or Prime Rate, plus
an applicable margin. At December 31, 2010, the annual commitment fee on unused balances was 0.375%. The weighted average
interest rate on the Facility was approximately 3.4% at December 31, 2010.
(In millions) 2010 2009
Senior Secured Credit Facility Term Loans $ 1,059.8 $ 1,320.7
8% Senior Notes due 2016 (1) 293.6 292.7
6 1/8% Senior Notes due 2022 (1) 300.0 —
7 1/2% Senior Subordinated Notes due 2017 (2) 639.8 650.0
7 1/2% Senior Subordinated Notes due 2020 (2) 470.2 —
Securitization Facility due 2013 300.0 250.0
Revolving Credit Facility — —
2% Subordinated Note due 2012 98.4 97.2
Non-U.S. borrowings 62.0 42.8
Other 16.8 12.8
Total debt (3) 3,240.6 2,666.2
Less: current portion (434.6) (520.3)
Total long-term debt $ 2,806.0 $ 2,145.9
(1) Collectively, the “Senior Notes.”
(2) Collectively, the “Senior Subordinated Notes.”
(3) At December 31, 2010 and 2009, the fair market value of total debt was approximately $3,330 and $2,675, respectively.
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