Western Union 2009 Annual Report Download - page 130

issuance. The Company’s commercial paper borrowings at December 31, 2008 had weighted-average interest
rates of approximately 4.1% and weighted-average initial terms of 27 days. The Company had no commercial
paper borrowings outstanding at December 31, 2009.
Revolving Credit Facility
On September 27, 2006, the Company entered into a five-year unsecured revolving credit facility, which
includes a $1.5 billion revolving credit facility, a $250.0 million letter of credit sub-facility and a
$150.0 million swing line sub-facility (the “Revolving Credit Facility”). On September 28, 2007, the Company
entered into an amended and restated credit agreement, the primary purpose of which was to extend the
maturity by one year from its original five-year $1.5 billion facility entered into in 2006. No other material
changes were made in the amended and restated facility. The Revolving Credit Facility, which is diversified
through a group of 15 participating institutions, is used to meet additional liquidity needs that might arise for
the Company and to support borrowings under the Company’s commercial paper program. The Revolving
Credit Facility contains certain covenants that, among other things, limit or restrict the ability of the Company
and other significant subsidiaries to grant certain types of security interests, incur debt or enter into sale and
leaseback transactions. The Company is also required to maintain compliance with a consolidated interest
coverage ratio covenant.
Interest due under the Revolving Credit Facility is fixed for the term of each borrowing and is payable
according to the terms of that borrowing. Generally, interest is calculated using a selected LIBOR rate plus an
interest rate margin of 19 basis points. A facility fee of 6 basis points on the total facility is also payable
quarterly, regardless of usage. The facility fee percentage is determined based on certain of the Company’s
credit ratings. In addition, to the extent the aggregate outstanding borrowings under the Revolving Credit
Facility exceed 50% of the related aggregate commitments, a utilization fee of 5 basis points as of
December 31, 2009 based upon such ratings is payable to the lenders on the aggregate outstanding
borrowings.
As of December 31, 2009, the Company had $1.5 billion available to borrow, as the Company had no
commercial paper borrowings outstanding.
Term Loan
On December 5, 2008, the Company entered into a senior, unsecured, 364-day term loan in an aggregate
principal amount of $500 million with a syndicate of lenders. The Term Loan was paid and financed with the
issuance of the 2014 Notes on February 26, 2009.
Notes
On February 26, 2009, the Company issued $500 million of aggregate principal amount of the 2014
Notes to repay the balance of the Term Loan which was scheduled to mature in December 2009. Interest with
respect to the 2014 Notes is payable semiannually on February 26 and August 26 each year based on the fixed
per annum interest rate of 6.500%. The 2014 Notes contain covenants that, among other things, limit or
restrict the ability of the Company and certain of its subsidiaries to grant certain types of security interests or
enter into sale and leaseback transactions. The Company may redeem the 2014 Notes at any time prior to
maturity at the greater of par or a price based on the applicable treasury rate plus 50 basis points.
On November 17, 2006, the Company issued $2 billion aggregate principal amount of the Company’s
unsecured fixed and floating rate notes, comprised of $500 million aggregate principal amount of the
Company’s Floating Rate Notes due 2008 (the “Floating Rate Notes”), $1 billion aggregate principal amount
of 5.400% Notes due 2011 and $500 million aggregate principal amount of 6.200% Notes due 2036 (the
“2036 Notes”). The Floating Rate Notes were redeemed upon maturity in November 2008.
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THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)