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7. LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS
Committed financing capacity and long-term debt consists of (millions):
Weighted
Average
Interest
Rate at
December 31,
2009 Maturities
Committed
Capacity at
December
31, 2009
(a)
Letters of
Credit
(b)
Unused
Committed
Capacity at
December 31,
2009
December 31,
2009
December 31,
2008
Outstanding Debt
(c)
(recast)
Cash and equivalents . . . . . $ 4,800 $— $ 4,800
Revolving bank credit
agreement and
commercial paper
program . . . . . . . . . . . . — 2011 6,900 82 6,818 $ — $ 4,490
Floating-rate public debt . . — — — — — — 2,000
Fixed-rate public debt . . . . 7.14% 2011-2036 15,227 — — 15,227 15,227
Other obligations
(d)
. . . . . . 7.00% 319 17 113 189 179
Subtotal . . . . . . . . . . . . . . 27,246 99 11,731 15,416 21,896
Debt due within one year . . (59) — — (59) (2,041)
Total . . . . . . . . . . . . . . . . $27,187 $99 $11,731 $15,357 $19,855
(a)
The revolving bank credit agreement, commercial paper program and public debt of the Company rank pari passu with the senior debt of the
respective obligors thereon. The maturity profile of the Company’s outstanding debt and other financing arrangements is relatively long-
term, with a weighted average maturity of 12.3 years as of December 31, 2009.
(b)
Represents the portion of committed capacity reserved for outstanding and undrawn letters of credit.
(c)
Represents principal amounts adjusted for premiums and discounts. The weighted-average interest rate on Time Warner’s total debt was
7.14% at December 31, 2009 and 5.50% at December 31, 2008. The Company’s public debt matures as follows: $0 in 2010, $2.000 billion in
2011, $2.000 billion in 2012, $1.300 billion in 2013, $0 in 2014 and $10.031 billion thereafter.
(d)
Amount consists of capital lease and other obligations, including committed financings by subsidiaries under local bank credit agreements.
Credit Agreements and Commercial Paper Program
Revolving Bank Credit Agreement
At December 31, 2009, Time Warner has a $6.9 billion senior unsecured five-year revolving credit facility that
matures February 17, 2011 (the “Revolving Facility”). The permitted borrowers under the Revolving Facility are
Time Warner and Time Warner International Finance Limited (the “Borrowers”).
On March 11, 2009, the Company entered into the first and second amendments to the amended and restated
credit agreement (the “Revolving Credit Agreement”) for its Revolving Facility. The first amendment terminated
the $100 million commitment of Lehman Commercial Paper Inc. (“LCPI”), a subsidiary of Lehman Brothers
Holdings Inc., which filed a petition for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in September
2008, reducing the committed amount of the Revolving Facility from $7.0 billion to $6.9 billion. The second
amendment, among other things, amended the Revolving Credit Agreement to (i) expand the circumstances under
which any other lender under the Revolving Facility would become a Defaulting Lender (as defined in the
Revolving Credit Agreement, as amended) and (ii) permit Time Warner to terminate the commitment of any such
lender on terms substantially similar to those applicable to LCPI under the first amendment to the Revolving Credit
Agreement.
Borrowings under the Revolving Facility bear interest at a rate determined by the credit rating of Time Warner,
which rate was LIBOR plus 0.35% per annum as of December 31, 2009. In addition, the Borrowers are required to
pay a facility fee on the aggregate commitments under the Revolving Facility at a rate determined by the credit
rating of Time Warner, which rate was 0.10% per annum as of December 31, 2009. The Borrowers will also incur an
92
TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)