Time Magazine 2010 Annual Report Download - page 58

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2010, total committed capacity, outstanding letters of credit, outstanding debt and total unused committed capacity
were as follows (millions):
Committed
Capacity
(a)
Letters of
Credit
(b)
Outstanding
Debt
(c)
Unused
Committed
Capacity
Cash and equivalents ............................. $ 3,663 $ — $ — $ 3,663
Revolving bank credit agreement and commercial paper
program ..................................... 5,000 51 — 4,949
Fixed-rate public debt............................. 16,276 — 16,276 —
Other obligations
(d)
.............................. 375 14 273 88
Total ......................................... $ 25,314 $ 65 $ 16,549 $ 8,700
(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 14.7 years as of December 31, 2010.
(b)
Represents the portion of committed capacity reserved for outstanding and undrawn letters of credit.
(c)
Represents principal amounts adjusted for premiums and discounts. At December 31, 2010, the Company’s public debt matures as follows:
$0 in 2011, $638 million in 2012, $732 million in 2013, $0 in 2014, $1.000 billion in 2015 and $14.031 billion thereafter. In the period after
2015, no more than $2.0 billion will mature in any given year.
(d)
Includes committed financings by subsidiaries under local bank credit agreements and $26 million of debt due within the next twelve
months that relates to capital lease and other obligations.
Revolving Bank Credit Facilities
Effective November 30, 2010, the Company reduced the commitments of the lenders under its $6.9 billion
senior unsecured five-year revolving credit facility to an aggregate amount equal to $5.0 billion (the “Prior Credit
Agreement”).
On January 19, 2011, the Company entered into two new senior unsecured revolving bank credit facilities
totaling $5.0 billion (the “New Revolving Credit Facilities”), consisting of a $2.5 billion three-year revolving credit
facility that matures on January 19, 2014 and a $2.5 billion five-year revolving credit facility that matures on
January 19, 2016. The New Revolving Credit Facilities replaced the Prior Credit Agreement, which would have
expired on February 17, 2011.
The funding commitments under the New Revolving Credit Facilities are provided by a geographically diverse
group of over 20 major financial institutions based in countries including Canada, France, Germany, Japan, Spain,
Sweden, Switzerland, the United Kingdom and the U.S. No institution accounts for more than 7% of the aggregate
undrawn loan commitments.
Commercial Paper Program
On February 16, 2011, the Company established a new commercial paper program on a private placement basis
under which Time Warner may issue unsecured commercial paper notes up to a maximum aggregate amount
outstanding at any time of $5 billion. Concurrently with the effectiveness of the new program, the Company
terminated its prior commercial paper program.
2010 Debt Transactions
On March 3, 2010, Time Warner filed a shelf registration statement with the Securities and Exchange
Commission that allows it to offer and sell from time to time debt securities, preferred stock, common stock and
warrants to purchase debt and equity securities. As summarized below, during 2010, the Company entered into a
46
TIME WARNER INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION – (Continued)