Time Warner Cable 2014 Annual Report Download - page 96

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
customary covenants relating to restrictions on the ability of TWCE or any material subsidiary to create liens and on the
ability of TWCE and TWC to consolidate, merge or convey or transfer substantially all of their assets. The TWCE
Indenture also contains customary events of default. TWCE has no obligation to file separate reports with the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as amended.
The TWCE Debentures are unsecured senior obligations of TWCE and rank equally with its other unsecured and
unsubordinated obligations. Interest on each series of TWCE Debentures is payable semi-annually in arrears. The
guarantees of the TWCE Debentures are unsecured senior obligations of TWC and rank equally in right of payment with
all other unsecured and unsubordinated obligations of TWC. The TWCE Debentures are not redeemable before maturity.
Revolving Credit Facility and Commercial Paper Program
As of December 31, 2014, the Company has a $3.5 billion senior unsecured five-year revolving credit facility
maturing in April 2017 (the “Revolving Credit Facility”). The Company’s obligations under the Revolving Credit Facility
are guaranteed by TWCE. Borrowings under the Revolving Credit Facility bear interest at a rate based on the credit rating
of TWC, which interest rate was LIBOR plus 1.10% per annum as of December 31, 2014. In addition, TWC is required to
pay a facility fee on the aggregate commitments under the Revolving Credit Facility at a rate determined by the credit
rating of TWC, which rate was 0.15% per annum as of December 31, 2014. The Revolving Credit Facility provides same-
day funding capability, and a portion of the aggregate commitments, not to exceed $500 million at any time, may be used
for the issuance of letters of credit.
The Revolving Credit Facility contains a maximum leverage ratio covenant of 5.0 times TWC’s consolidated
EBITDA. The terms and related financial metrics associated with the leverage ratio are defined in the agreement. As of
December 31, 2014, TWC was in compliance with the leverage ratio covenant, calculated in accordance with the
agreement, with a ratio of approximately 2.8 times. The Revolving Credit Facility does not contain any credit ratings-
based defaults or covenants or any ongoing covenants or representations specifically relating to a material adverse change
in TWC’s financial condition or results of operations. Borrowings under the Revolving Credit Facility may be used for
general corporate purposes, and unused credit is available to support borrowings under the Commercial Paper Program (as
defined below).
In addition to the Revolving Credit Facility, the Company maintains a $2.5 billion unsecured commercial paper
program (the “Commercial Paper Program”) that is also guaranteed by TWCE. Commercial paper issued under the
Commercial Paper Program is supported by unused committed capacity under the Revolving Credit Facility and ranks
equally with other unsecured senior indebtedness of TWC and TWCE.
As of December 31, 2014, the Company had no borrowings outstanding under the Revolving Credit Facility and had
$507 million outstanding under the Commercial Paper Program. TWC’s unused committed financial capacity was $3.640
billion as of December 31, 2014, reflecting $707 million of cash and equivalents and $2.933 billion of available
borrowing capacity under the Revolving Credit Facility (which reflects a reduction of $60 million for outstanding letters
of credit backed by the Revolving Credit Facility).
Debt Issuance Costs
For the year ended December 31, 2012, the Company capitalized debt issuance costs of $26 million in connection
with the Company’s public debt issuances. These capitalized costs are amortized over the term of the related debt
instrument and are included as a component of interest expense, net, in the consolidated statement of operations.
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