Tyson Foods 2015 Annual Report Download - page 62
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Please find page 62 of the 2015 Tyson Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.RevolvingCreditFacility
Wehavea$1.25billionrevolvingcreditfacilitythatsupportsshort-termfundingneedsandlettersofcredit.Thefacilitywillmatureandthecommitments
thereunderwillterminateinSeptember2019.Afterreducingfortheamountborrowedandoutstandinglettersofcreditissuedunderthisfacility,theamount
availableforborrowingatOctober3,2015,was$1,244million.AtOctober3,2015,wehadoutstandinglettersofcreditissuedunderthisfacilitytotaling$6
million,noneofwhichweredrawnupon.Wehadanadditional$93millionofbilaterallettersofcreditissuedseparatelyfromtherevolvingcreditfacility,noneof
whichweredrawnupon.Ourlettersofcreditareissuedprimarilyinsupportofleasingobligationsandworkers’compensationinsuranceprograms.
TherevolvingcreditfacilityisunsecuredandisfullyguaranteedbyTysonFreshMeats,Inc.(TFMParent),ourwhollyownedsubsidiary,untilsuchdateTFM
Parentisreleasedfromallofitsguaranteesofothermaterialindebtedness.Ifinthefutureanyofourothersubsidiariesshallguaranteeanyofourmaterial
indebtedness,suchsubsidiaryshallalsoberequiredtoguaranteetheindebtedness,obligationsandliabilitiesunderthisfacility.
2013Notes
InSeptember2008,weissued$458millionprincipalamount3.25%convertibleseniorunsecurednotesdueOctober15,2013.Inconnectionwiththeissuanceof
the2013Notes,weenteredintoseparatecalloptionandwarranttransactionswithrespecttoourClassAstocktominimizethepotentialeconomicdilutionupon
conversionofthe2013Notes.Thecalloptionscontractuallyexpireduponthematurityofthe2013Notes.The2013NotesmaturedonOctober15,2013atwhich
timewepaidthe$458millionprincipalvaluewithcashonhandandsettledtheconversionpremiumbyissuing11.7millionsharesofourClassAstockfrom
availabletreasuryshares.Simultaneouslywiththesettlementoftheconversionpremium,wereceived11.7millionsharesofourClassAstockfromthecall
options.Thewarrantsweresettledonvariousdatesinfiscal2014resultingintheissuanceof11.7millionsharesofClassAstock.
2015Notes
InJuly2015,weexercisedanearlyredemptionoptiontoretiretheoutstanding$401millionbalanceofthe2015Notesusingcashproceedsfromthesaleofthe
MexicooperationasfurtherdescribedinNote3:AcquisitionsandDispositions.
TermLoans
InApril2015,weenteredintoatermloanagreement,whichprovidedtotalborrowingsinanaggregateprincipalamountof$500million,thefullbalanceofwhich
wasusedtoprepayoutstandingborrowingsundertheexisting3-yeartrancheAtermloanfacility.The$500million3-yeartrancheBtermloanfacilityisdue
April7,2018.InterestisresetbasedontheselectedLIBORinterestperiodplus1.125%.
DebtCovenants
Ourrevolvingcreditandtermloanfacilitiescontainaffirmativeandnegativecovenantsthat,amongotherthings,maylimitorrestrictourabilityto:createliens
andencumbrances;incurdebt;merge,dissolve,liquidateorconsolidate;makeacquisitionsandinvestments;disposeofortransferassets;changethenatureofour
business;engageincertaintransactionswithaffiliates;andenterintohedgingtransactions,ineachcase,subjecttocertainqualificationsandexceptions.In
addition,wearerequiredtomaintainminimuminterestexpensecoverageandmaximumdebt-to-capitalizationratios.
Ourseniornotesalsocontainaffirmativeandnegativecovenantsthat,amongotherthings,maylimitorrestrictourabilityto:createliens;engageincertain
sale/leasebacktransactions;andengageincertainconsolidations,mergersandsalesofassets.
WewereincompliancewithalldebtcovenantsatOctober3,2015.
NOTE 8: EQUITY
CapitalStock
Wehavetwoclassesofcapitalstock,ClassAstock,$0.10parvalueandClassBCommonStock,$0.10parvalue(ClassBstock).HoldersofClassBstockmay
convertsuchstockintoClassAstockonashare-for-sharebasis.HoldersofClassBstockareentitledto10votespershare,whileholdersofClassAstockare
entitledtoonevotepershareonmatterssubmittedtoshareholdersforapproval.AsofOctober3,2015,TysonLimitedPartnership(theTLP)owned99.985%of
theoutstandingsharesofClassBstockandtheTLPandmembersoftheTysonfamilyowned,intheaggregate,1.79%oftheoutstandingsharesofClassAstock,
givingthem,collectively,controlofapproximately70.64%ofthetotalvotingpoweroftheoutstandingvotingstock.
TheClassBstockisconsideredaparticipatingsecurityrequiringtheuseofthetwo-classmethodforthecomputationofbasicearningspershare.Thetwo-class
computationmethodforeachperiodreflectsthecashdividendspaidforeachclassofstock,plustheamountofallocatedundistributedearnings(losses)computed
usingtheparticipationpercentage,whichreflectsthedividendrightsofeachclassofstock.Basicearningspersharewerecomputedusingthetwo-classmethodfor
allperiodspresented.ThesharesofClassBstockareconsideredtobeparticipatingconvertiblesecuritiessincethesharesofClassBstockareconvertibleona
share-for-sharebasisintosharesofClassAstock.DilutedearningspersharewerecomputedassumingtheconversionoftheClassBsharesintoClassAsharesas
ofthebeginningofeachperiod.
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