Waste Management 2008 Annual Report Download - page 112
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Please find page 112 of the 2008 Waste Management 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.7. Debt and Interest Rate Derivatives
Debt
The following table summarizes the major components of debt at December 31 (in millions) and provides the
maturities and interest rates of each major category as of December 31, 2008:
2008 2007
Revolving credit facility (weighted average interest rate of 2.4% at December 31,
2008 and 5.4% at December 31, 2007) .............................. $ 300 $ 300
Letter of credit facilities ........................................... — —
Canadian credit facility (weighted average interest rate of 3.3% at December 31,
2008 and 5.3% at December 31, 2007) .............................. 242 336
Senior notes and debentures, maturing through 2032, interest rates ranging from
5.0% to 7.75% (weighted average interest rate of 6.8% at December 31, 2008
and 7.0% at December 31, 2007)................................... 4,628 4,584
Tax-exempt bonds maturing through 2039, fixed and variable interest rates
ranging from 0.9% to 7.4% (weighted average interest rate of 3.9% at
December 31, 2008 and 4.4% at December 31, 2007) ................... 2,684 2,533
Tax-exempt project bonds, principal payable in periodic installments, maturing
through 2029, fixed and variable interest rates ranging from 1.2% to 9.3%
(weighted average interest rate of 4.9% at December 31, 2008 and 5.3% at
December 31, 2007) ............................................ 220 290
Capital leases and other, maturing through 2050, interest rates up to 12% . ..... 252 294
$8,326 $8,337
Less current portion .............................................. 835 329
$7,491 $8,008
Revolving credit facility — On August 17, 2006, WMI entered into a five-year, $2.4 billion revolving credit
facility. This facility provides us with credit capacity to be used for either cash borrowings or to support letters of
credit. At December 31, 2008, we had $300 million of outstanding borrowings and $1,803 million of letters of credit
issued and supported by the facility. The unused and available credit capacity of the facility was $297 million as of
December 31, 2008.
The $300 million of outstanding borrowings at December 31, 2007 was repaid in the first quarter of 2008 with
$50 million of available cash and $250 million of proceeds from the March 2008 issuance of senior notes discussed
below. The current borrowing was made in November 2008 to repay a portion of the $386 million of 6.5% senior
notes that matured on November 15, 2008.
The borrowing outstanding at December 31, 2008 matures in the first quarter of 2009, although we currently
intend to refinance this borrowing on a long-term basis. Accordingly, this debt obligation has been reflected as long-
term in our December 31, 2008 Consolidated Balance Sheet. As of December 31, 2007, $250 million of our
outstanding debt obligation under the facility was reflected as long-term in our Consolidated Balance Sheet.
Letter of credit facilities — As of December 31, 2008, we have a $175 million letter of credit and term loan
agreement that expires in June 2010 and a $105 million letter of credit and term loan agreement that expires in June
2013. These facilities are currently being used to back letters of credit issued to support our bonding and financial
assurance needs. Our letters of credit generally have terms providing for automatic renewal after one year. In the
event of an unreimbursed draw on a letter of credit, the amount of the draw paid by the letter of credit provider
generally converts into a term loan for the remaining term of the respective agreement or facility. Through
December 31, 2008, we had not experienced any unreimbursed draws on letters of credit under these facilities.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)