Time Warner Cable 2008 Annual Report Download - page 86

Outstanding Debt and Mandatorily Redeemable Preferred Equity and Available Financial Capacity
Debt and mandatorily redeemable preferred equity as of December 31, 2008 and 2007 were as follows:
Interest Rate at
December 31,
2008 Maturity 2008 2007
Outstanding Balance as of
December 31,
(in millions)
Credit facilities
(a)(b)
......................... 1.353%
(c)
2011 $ 3,045 $ 5,256
TWC notes and debentures ................... 6.752%
(c)
2012-2038 11,956 4,985
TWE notes and debentures
(d)(e)
................ 7.809%
(c)
2012-2033 2,714 3,326
Capital leases and other
(f)
..................... 13 10
Total debt ................................ 17,728 13,577
TW NY Cable Preferred Membership Units ....... 8.210% 2013 300 300
Total debt and mandatorily redeemable preferred
equity ................................. $ 18,028 $ 13,877
(a)
TWC’s unused committed capacity was $13.130 billion as of December 31, 2008, reflecting $5.449 billion in cash and equivalents,
$5.749 billion of available borrowing capacity under the Revolving Credit Facility (which reflects a reduction of $126 million for
outstanding letters of credit backed by the Revolving Credit Facility and $125 million for commitments of LBB, as defined and discussed
below) and $1.932 billion of borrowing capacity under the 2008 Bridge Facility (excluding $138 of commitments of LBCB). TWC may
not borrow any amounts under the 2008 Bridge Facility unless and until the Special Dividend is declared.
(b)
Outstanding balance amount as of December 31, 2007 excludes an unamortized discount on commercial paper of $5 million (none as of
December 31, 2008).
(c)
Rate represents an effective weighted-average interest rate.
(d)
Outstanding balance amount as of December 31, 2008 and 2007 includes an unamortized fair value adjustment of $114 million and
$126 million, respectively.
(e)
As of December 31, 2007, the Company classified $601 million of TWE 7.25% debentures due September 1, 2008 as long-term in the
consolidated balance sheet to reflect management’s intent and ability to refinance the obligation on a long-term basis through the
utilization of the Company’s unused committed capacity.
(f)
Amount includes $1 million of debt due within one year as of December 31, 2008 (none as of December 31, 2007), which primarily relates
to capital lease obligations.
See “Overview—Recent Developments—2008 Bond Offerings and Credit Facilities” and Note 7 to the
accompanying consolidated financial statements for further details regarding the Company’s outstanding debt and
mandatorily redeemable preferred equity and other financing arrangements, including certain information about
maturities, covenants, rating triggers and bank credit agreement leverage ratios relating to such debt and financing
arrangements.
Lending Commitments
As noted above, as of December 31, 2008, TWC had $5.749 billion of available borrowing capacity under the
Revolving Credit Facility and $1.932 billion of borrowing capacity under the 2008 Bridge Facility. TWC may not
borrow any amounts under the 2008 Bridge Facility unless and until the Special Dividend is declared. The 2008
Bridge Facility consists of commitments of approximately $138 million from each of 14 institutions, consisting of
affiliates of Bank of America, N.A., The Bank of Tokyo-Mitsubishi UFJ, LTD., Barclays Bank Plc, BNP Paribas
Securities Corp., Citibank, N.A., Deutsche Bank AG, Fortis Bank SA/NV, Goldman Sachs Bank USA, Mizuho
Corporate Bank, LTD., Morgan Stanley Bank, The Royal Bank of Scotland PLC, Sumitomo Mitsui Banking
Corporation, UBS Loan Finance LLC and Wachovia Bank, National Association. These same financial institutions
also comprise approximately 70% of the commitments under the Revolving Credit Facility. Recently, a number of
these lenders have entered into agreements to acquire or to be acquired by other financial institutions. TWC believes
that these transactions will not adversely affect the commitments under the 2008 Bridge Facility or the Revolving
Credit Facility. The Company’s bank credit agreements do not contain borrowing restrictions due to material
adverse changes in the Company’s business or market disruption. See Note 7 to the accompanying consolidated
financial statements.
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TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)