Tyson Foods 2012 Annual Report Download - page 48

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NOTE 7: DEBT
The major components of debt are as follows (in millions):
2012 2011
Revolving credit facility $ — $ —
Senior notes:
3.25% Convertible senior notes due October 2013 (2013 Notes) 458 458
10.50% Senior notes due March 2014 (2014 Notes) — 810
6.60% Senior notes due April 2016 (2016 Notes) 638 638
7.00% Notes due May 2018 120 120
4.50% Senior notes due June 2022 (2022 Notes) 1,000 —
7.00% Notes due January 2028 18 18
Discount on senior notes (28)(76)
GO Zone tax-exempt bonds due October 2033 (0.20% at 9/29/2012) 100 100
Other 126 114
Total debt 2,432 2,182
Less current debt 515 70
Total long-term debt $ 1,917 $ 2,112
Annual maturities of debt for the five fiscal years subsequent to September 29, 2012, are: 2013 - $537 million; 2014 - $22 million;
2015 - $13 million; 2016 - $646 million; 2017 - $4 million.
Revolving Credit Facility
In August 2012, we entered into a new $1.0 billion revolving credit facility that supports short-term funding needs and letters of credit,
which replaced our revolving credit facility scheduled to expire in February 2016. The facility will mature and the commitments
thereunder will terminate in August 2017.
After reducing the amount available by outstanding letters of credit issued under this facility, the amount available for borrowing at
September 29, 2012, was $962 million. At September 29, 2012, we had outstanding letters of credit issued under this facility totaling
$38 million, none of which were drawn upon. We had an additional $151 million of bilateral letters of credit issued separately from the
revolving credit 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’ Gulf Opportunity Zone tax-exempt bonds.
This facility is unsecured. However, if at any time (the Collateral Trigger Date) we shall fail to have (a) a corporate rating from
Moody's Investors Service, Inc. (Moody's) of "Ba1" or better, (b) a corporate rating from Standard & Poor's Ratings Services, a
Standard & Poor's Financial Services LLC business (S&P), of "BB+" or better, or (c) a corporate rating from Fitch Ratings, a wholly
owned subsidiary of Fimalac, S.A. (Fitch), of "BB+" or better, we, any subsidiary that has guaranteed any material indebtedness of the
Company, and substantially all of our other domestic subsidiaries shall be required to secure the obligations under the credit agreement
and related documents with a first-priority perfected security interest in our and such subsidiary's cash, deposit and securities accounts,
accounts receivable and related assets, inventory and proceeds of any of the foregoing (the Collateral Requirement).
If on any date prior to any Collateral Trigger Date we shall have (a) a corporate rating from Moody's of "Baa2" or better, (b) a
corporate rating from S&P of "BBB" or better and (c) a corporate rating from Fitch of "BBB" or better, in each case with stable or
better outlook, then the Collateral Requirement will no longer be effective.
This facility is fully guaranteed by Tyson Fresh Meats, Inc (TFM Parent), our wholly owned subsidiary, until such date TFM Parent is
released from all of its guarantees of other material indebtedness. If in the future any of our other subsidiaries shall guarantee any of
our material indebtedness, such subsidiary shall also be required to guarantee the indebtedness, obligations and liabilities under this
facility.