TJ Maxx 2015 Annual Report Download - page 89

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The aggregate maturities of long-term debt, exclusive of current installments at January 30, 2016 are as follows:
In thousands
Long-Term
Debt
Fiscal Year
2018 $—
2019 —
2020 375,000
2021 —
Later years 1,250,000
Less amount representing unamortized debt discount (946)
Aggregate maturities of long-term debt $1,624,054
At January 30, 2016, TJX had outstanding $750 million aggregate principal amount of 2.75% seven-year notes,
due June 2021. TJX entered into rate-lock agreements to hedge the underlying treasury rate of all of the 2.75% notes
prior to their issuance. The agreements were accounted for as cash flow hedges and the pre-tax realized loss of $7.9
million was recorded as a component of other comprehensive income and is being amortized to interest expense
over the term of the notes, resulting in an effective fixed interest rate of 2.91%. In July 2014, TJX used a portion of the
proceeds of the 2.75% seven-year notes to redeem the 4.20% notes and recorded a pre-tax loss on the early
extinguishment of debt of $16.8 million, which includes $16.4 million of redemption premium and approximately
$400,000 to write off unamortized debt expenses and discount.
At January 30, 2016, TJX also had outstanding $500 million aggregate principal amount of 2.50% ten-year notes
due May 2023 and $375 million aggregate principal amount of 6.95% ten-year notes due April 2019. TJX entered into
rate-lock agreements to hedge the underlying treasury rate of $250 million of the 2.50% notes and all of the 6.95%
notes. The cost of these agreements are being amortized to interest expense over the term of the respective notes,
resulting in an effective fixed interest rate of 2.57% for the 2.50% notes and 7.00% for the 6.95% notes.
At January 30, 2016, TJX had two $500 million revolving credit facilities, one which was scheduled to mature in
June 2017 and one which was scheduled to mature in May 2016. As of January 30, 2016 and January 31, 2015, and
during the years then ended, there were no amounts outstanding under these facilities. At January 30, 2016, the
agreements required quarterly payments on the unused committed amounts of 6.0 basis points for the agreement
maturing in 2017 and 10 basis points for the agreement maturing in 2016. These agreements had no compensating
balance requirements and had various covenants. Each of these facilities required TJX to maintain a ratio of funded
debt and four-times consolidated rentals to consolidated earnings before interest, taxes, consolidated rentals,
depreciation and amortization (EBITDAR) of not more than 2.75 to 1.00 on a rolling four-quarter basis. TJX was in
compliance with all covenants related to its credit facilities at the end of all periods presented. In March 2016, the
$500 million revolving credit facility scheduled to mature in May 2016 was replaced with a new five-year $500 million
revolving credit facility maturing in March 2021 and the $500 million revolving credit facility scheduled to mature in
June 2017 was replaced with a new four-year $500 million revolving credit facility maturing in March 2020. The terms
and covenants under the new revolving credit facilities are similar to those in the terminated facilities and require
quarterly payments of 6.0 basis points on the committed amounts for both agreements. This rate is based on the
credit ratings of TJX’s long-term debt and will vary with specified changes in the credit ratings.
As of January 30, 2016 and January 31, 2015, 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.
As of January 30, 2016 and January 31, 2015 and during the years then ended, there were no amounts outstanding
on the Canadian credit line for operating expenses. As of January 30, 2016 and January 31, 2015, our European
business at TJX International had a credit line of £5million and £20 million, respectively. As of January 30, 2016 and
January 31, 2015 and during the years then ended, there were no amounts outstanding on this U.K. credit line.
F-28