Time Magazine 2014 Annual Report Download - page 98

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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
Debt Offering
On May 20, 2014, Time Warner issued $650 million aggregate principal amount of 2.10% Notes due 2019, $750 million
aggregate principal amount of 3.55% Notes due 2024 and $600 million aggregate principal amount of 4.65% Debentures due
2044 in a public offering. The securities issued pursuant to the offering are directly or indirectly guaranteed, on an unsecured
basis, by Historic TW, Home Box Office and Turner.
Maturities of Public Debt
The Company’s public debt matures as follows (millions):
2015 2016 2017 2018 2019 Thereafter
Debt ............... $ 1,000 $ 1,150 $ 500 $ 600 $ 650 $ 18,131
Covenants and Credit Rating Triggers
Each of the Company’s Credit Agreement and public debt indentures contain customary covenants. A breach of such
covenants in the Credit Agreement that continues beyond any grace period constitutes a default, which can limit the
Company’s ability to borrow and can give rise to a right of the lenders to terminate the Revolving Credit Facilities and/or
require immediate payment of any outstanding debt. A breach of such covenants in the public debt indentures beyond any
grace period constitutes a default, which can require immediate payment of the outstanding debt. There are no credit ratings-
based defaults or covenants in the Credit Agreement or public debt indentures.
The interest rate on borrowings under the Revolving Credit Facilities and the facility fee are based in part on the
Company’s credit ratings. Therefore, if the Company’s credit ratings are lowered, the cost of maintaining the Revolving
Credit Facilities and the cost of borrowing increase and, conversely, if the ratings improve, such costs decrease. As of
December 31, 2014, the Company’s investment grade debt ratings were as follows: Fitch BBB+, Moody’s Baa2, and S&P
BBB.
As of December 31, 2014, the Company was in compliance with all covenants in the Credit Agreement and its public debt
indentures. The Company does not anticipate that it will have any difficulty in the foreseeable future complying with the
covenants in its Credit Agreement or public debt indentures.
Other Obligations
Other long-term debt obligations consist of capital lease and other obligations, including committed financings by
subsidiaries under local bank credit agreements. At December 31, 2014 and 2013, the weighted average interest rate for other
long-term debt obligations was 2.58% and 3.98%, respectively. Significant maturities of other long-term debt obligations are
as follows: $100 million in 2015, $125 million in 2018 and $250 million in 2019.
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