TJ Maxx 2009 Annual Report Download - page 75

The aggregate maturities of long-term debt, exclusive of current installments at January 30, 2010 are as follows:
In thousands Long-Term Debt
Fiscal Year
2012 $—
2013 —
2014 —
2015 —
Later years 775,000
Less amount representing unamortized debt discount (675)
Aggregate maturities of long-term debt, exclusive of current installments $774,325
In February 2001, TJX issued $517.5 million zero coupon convertible subordinated notes due in February 2021 and
raised gross proceeds of $347.6 million. The issue price of the notes represented a yield to maturity of 2% per year.
During fiscal 2010, TJX called for the redemption of these notes at the original issue price plus accrued original issue
discount, and 462,057 of such notes with a carrying value of $365.1 million were converted into 15.1 million shares of
TJX common stock at a rate of 32.667 shares per note. TJX paid $2.3 million to redeem the remaining 2,886 notes
outstanding that were not converted. Prior to fiscal 2010, a total of 52,557 notes were either converted into common
shares of TJX or put back to the Company.
On April 7, 2009, TJX issued $375 million aggregate principal amount of 6.95% ten-year notes and used the
proceeds from the 6.95% notes offering to repurchase additional common stock under its stock repurchase program in
fiscal 2010. Also in April 2009, prior to the issuance of the 6.95% notes, TJX entered into a rate-lock agreement to hedge
the underlying treasury rate of those notes. The cost of this agreement is being amortized to interest expense over the
term of the 6.95% notes and results in an effective fixed rate of 7.00% on those notes.
On July 23, 2009, TJX issued $400 million aggregate principal amount of 4.20% six-year notes. TJX used a portion
of the proceeds from the sale of the notes to refinance its C$235 million term credit facility on August 10, 2009, prior to
its scheduled maturity, and used the remainder, together with funds from operations, to repay its $200 million
7.45% notes due December 15, 2009, at maturity. Also in July 2009, prior to the issuance of the 4.20% notes, TJX
entered into a rate-lock agreement to hedge the underlying treasury rate on $250 million of those notes. The cost of this
agreement is being amortized to interest expense over the term of the 4.20% notes and results in an effective fixed rate of
4.19% on the notes.
TJX has a $500 million revolving credit facility maturing May 2010 and a $500 million revolving credit facility
maturing May 2011. TJX pays six basis points annually on the committed amounts under each of the credit facilities.
These agreements have no compensating balance requirements and have various covenants including a requirement of a
specified ratio of debt to earnings. These agreements serve as back up to TJX’s commercial paper program. As of
January 30, 2010, there were no outstanding amounts under these credit facilities. The maximum amount of our
U.S. short-term borrowings outstanding was $165.0 million during fiscal 2010 and $222.0 million in fiscal 2009. The
weighted average interest rate on our U.S. short-term borrowings was 1.01% in fiscal 2010. We did not borrow under
these credit facilities during fiscal 2008.
As of January 30, 2010 and January 31, 2009, TJX’s foreign subsidiaries had uncommitted credit facilities. TJX
Canada had two credit lines, a C$10 million facility for operating expenses and a C$10 million letter of credit facility.
There were no borrowings under the Canadian credit line for operating expenses in fiscal 2010 or fiscal 2009. The
maximum amount outstanding under our Canadian credit line for operating expenses was C$5.7 million in fiscal 2008.
There were no amounts outstanding on the Canadian credit line for operating expenses at the end of fiscal 2010 or fiscal
2009. As of January 30, 2010, TJX Europe had a credit line of £20 million. The maximum amount outstanding under
this U.K. line was £1.9 million in fiscal 2010, £6.1 million in fiscal 2009 and £16.4 million in fiscal 2008. There were no
outstanding borrowings on this U.K. credit line at the end of fiscal 2010 or fiscal 2009.
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