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TIME WARNER INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
unsecured basis, by Historic TW Inc. (“Historic TW”), Home Box Office and Turner. The obligations of TWIFL under the
Revolving Credit Facilities are also guaranteed by Time Warner.
Commercial Paper Program
The Company has a commercial paper program, which was established on February 16, 2011 on a private placement
basis, under which Time Warner may issue unsecured commercial paper notes up to a maximum aggregate amount not to
exceed the unused committed capacity under the $5.0 billion Revolving Credit Facilities, which support the commercial
paper program. Proceeds from the commercial paper program may be used for general corporate purposes. The obligations of
the Company under the commercial paper program are directly or indirectly guaranteed, on an unsecured basis, by Historic
TW, Home Box Office and Turner.
Public Debt
Time Warner and one of its subsidiaries have various public debt issuances outstanding. At issuance, the maturities of
these outstanding series of debt ranged from five to 40 years and the interest rates on debt with fixed interest rates ranged
from 1.95% to 9.15%. At December 31, 2015 and 2014, the weighted average interest rate on the Company’s outstanding
fixed-rate public debt was 5.67% and 5.92%, respectively. At December 31, 2015, the Company’s fixed-rate public debt had
maturities ranging from 2016 to 2045.
Debt Offerings
On June 4, 2015, Time Warner issued $2.1 billion aggregate principal amount of debt securities under a shelf
registration statement, consisting of $1.5 billion aggregate principal amount of 3.60% Notes due 2025 and $600 million
aggregate principal amount of 4.85% Debentures due 2045. The securities are guaranteed, on an unsecured basis, by Historic
TW. In addition, Turner and Home Box Office guarantee, on an unsecured basis, Historic TW’s guarantee of the
securities. The net proceeds from the offering were $2.083 billion, after deducting underwriting discounts and offering
expenses. The Company used a portion of the net proceeds from the offering to retire at maturity the $1.0 billion aggregate
principal amount outstanding of its 3.15% Notes due July 15, 2015. The remainder of the net proceeds will be used for
general corporate purposes, including share repurchases.
On July 28, 2015, Time Warner issued €700 million aggregate principal amount of 1.95% Notes due 2023 under a
shelf registration statement. The notes are guaranteed, on an unsecured basis, by Historic TW. In addition, Turner and Home
Box Office guarantee, on an unsecured basis, Historic TW’s guarantee of the notes. The net proceeds from the offering were
€693 million, after deducting underwriting discounts and offering expenses, and will be used for general corporate purposes.
In addition, the Company has designated these notes as a hedge of the variability in the Company’s Euro-denominated net
investments. See Note 7, “Derivative Instruments and Hedging Activities,” to the accompanying consolidated financial
statements for more information.
On November 20, 2015, Time Warner issued $900 million aggregate principal amount of debt securities under a shelf
registration statement, consisting of $600 million aggregate principal amount of 3.875% Notes due 2026 and $300 million
additional aggregate principal amount of 4.85% Debentures due 2045 (the “Additional Debentures”). The Additional
Debentures constitute an additional issuance of, form a single series with, and trade interchangeably with, the outstanding
4.85% Debentures due 2045 issued by Time Warner on June 4, 2015. The securities are guaranteed, on an unsecured basis,
by Historic TW. In addition, Turner and Home Box Office guarantee, on an unsecured basis, Historic TW’s guarantee of the
securities. The net proceeds from the offering were $884 million, after deducting underwriting discounts and offering
expenses, and will be used for general corporate purposes.
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