Tyson Foods 2009 Annual Report Download - page 54

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54
NOTE 11: LONG-TERM DEBT
The major components of long-term debt are as follows (in millions):
2009
2008
Revolving credit facility – expires March 2012
$
-
$
-
Senior notes:
7.95% Notes due February 2010 (2010 Notes)
140
234
8.25% Notes due October 2011 (2011 Notes)
839
998
3.25% Convertible senior notes due October 2013 (2013 Notes)
458
458
10.50% Senior notes due March 2014 (2014 Notes)
756
-
7.85% Senior notes due April 2016 (2016 Notes)
922
960
7.00% Notes due May 2018
172
172
7.125% Senior notes due February 2026
9
9
7.00% Notes due January 2028
27
27
GO Zone tax-exempt bonds due October 2033 (0.10% at 10/03/09)
100
-
Other
129
38
Total debt
3,552
2,896
Less current debt
219
8
Total long-term debt
$
3,333
$
2,888
Annual maturities of long-term debt for the five fiscal years subsequent to October 3, 2009, are: 2010-$219 million; 2011-$855
million; 2012-$11 million; 2013-$6 million; 2014-$1.2 billion.
Revolving Credit Facility
We entered into a new revolving credit facility in March 2009 totaling $1.0 billion that supports short-term funding needs and letters
of credit, which replaced our revolving credit facility scheduled to expire in September 2010. Loans made under this facility will
mature and the commitments thereunder will terminate in March 2012. However, if our 2011 Notes are not refinanced, purchased or
defeased prior to July 3, 2011, the outstanding loans under this facility will mature on and commitments thereunder will terminate on
July 3, 2011. We incurred approximately $30 million in transaction fees which will be amortized over the three-year life of this
facility.
Availability under this facility, up to $1.0 billion, is based on a percentage of certain eligible receivables and eligible inventory and is
reduced by certain reserves. After reducing the amount available by outstanding letters of credit issued under this facility, the amount
available for borrowing under this facility at October 3, 2009, was $733 million. At October 3, 2009, we had outstanding letters of
credit issued under this facility totaling approximately $267 million and an additional $51 million of bilateral letters of credit not
issued under this facility, none of which were drawn upon. Our letters of credit are issued primarily in support of workers’
compensation insurance programs, derivative activities and Dynamic Fuels’ GO Zone tax-exempt bonds.
This facility is fully and unconditionally guaranteed on a senior secured basis by substantially all of our domestic subsidiaries. The
guarantors’ cash, accounts receivable, inventory and proceeds received related to these items secure our obligations under this facility.
2013 Notes
In September 2008, we issued $458 million principal amount 3.25% convertible senior unsecured notes due October 15, 2013, with
interest payable semi-annually in arrears on April 15 and October 15. The conversion rate initially is 59.1935 shares of Class A stock
per $1,000 principal amount of notes, which is equivalent to an initial conversion price of $16.89 per share of Class A stock. The
2013 Notes may be converted before the close of business on July 12, 2013, only under the following circumstances: