Western Union 2009 Annual Report Download - page 72

Commercial Paper
Pursuant to our commercial paper program, we may issue unsecured commercial paper notes in an
amount not to exceed $1.5 billion outstanding at any time. Our commercial paper borrowings may have
maturities of up to 397 days from date of issuance. Interest rates for borrowings are based on market rates at
the time of issuance. We had no commercial paper borrowings at December 31, 2009. Our commercial paper
borrowings at December 31, 2008 had a weighted-average interest rate of approximately 4.1% and a weighted-
average initial term of 27 days.
Revolving Credit Facility
Our revolving credit facility expires in September 2012 and 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”).
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 payable quarterly
regardless of usage. 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. The interest rate margin, facility fee and utilization fee are all based on certain of our credit
ratings.
As of December 31, 2009, we had no outstanding borrowings and had $1.5 billion available to borrow.
Our revolving credit facility, which is diversified through a group of 15 participating institutions, is used to
provide general liquidity for us and to support our commercial paper program, which we believe enhances our
short term credit rating. The largest commitment from any single financial institution within the total
committed balance of $1.5 billion is approximately 20%. The substantial majority of the banks within this
group were rated at least an “A-” or better as of December 31, 2009. If the amount available to borrow under
the revolving credit facility decreased, or if the revolving credit facility were eliminated, the cost and
availability of borrowing under the commercial paper program may be impacted.
Term Loan
On December 5, 2008, we 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 repaid and financed with the
issuance of the 2014 Notes on February 26, 2009.
Notes
On February 26, 2009, we issued $500 million aggregate principal amount of 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%. We 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, we issued $2 billion aggregate principal amount of our unsecured fixed and
floating rate notes, comprised of $500 million aggregate principal amount of our 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 paid upon maturity in November 2008. Interest with respect to the 2011 Notes and 2036 Notes is
payable semiannually in arrears on May 17 and November 17 each year. We may redeem the 2011 Notes and
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