Western Union 2010 Annual Report Download - page 119

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the ability of the Company and certain of its subsidiaries to grant certain types of security interests, incur debt (in the
case of significant subsidiaries), or enter into sale and leaseback transactions. The Company may redeem the 2020
Notes at any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 15 basis
points.
The 2020 Notes were originally issued in reliance on exemptions from the registration requirements of the
Securities Act of 1933, as amended (the “Securities Act”). On October 8, 2010, the Company exchanged the 2020
Notes for notes registered under the Securities Act, pursuant to the terms of the Registration Rights Agreement.
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 are subject to 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 of 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.
Interest with respect to the 2011 Notes and 2036 Notes is payable semiannually on May 17 and November 17
each year based on fixed per annum interest rates of 5.400% and 6.200%, respectively. The 2011 Notes and 2036
Notes are subject to 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, incur debt (in the case of significant subsidiaries), or enter
into sale and leaseback transactions. The Company may redeem the 2011 Notes and the 2036 Notes at any time prior
to maturity at the greater of par or a price based on the applicable treasury rate plus 15 basis points and 25 basis
points, respectively.
On September 29, 2006, the Company issued $1.0 billion of aggregate principal amount of unsecured notes
maturing on October 1, 2016. Interest on the 2016 Notes is payable semiannually on April 1 and October 1 each year
based on a fixed per annum interest rate of 5.930%. The 2016 Notes are subject to 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, incur debt (in the case of significant subsidiaries) or enter into sale and leaseback transactions. The
Company may redeem the 2016 Notes at any time prior to maturity at the greater of par or a price based on the
applicable treasury rate plus 20 basis points.
16. Stock Compensation Plans
Stock Compensation Plans
The Western Union Company 2006 Long-Term Incentive Plan
The Western Union Company 2006 Long-Term Incentive Plan (“2006 LTIP”) provides for the granting of stock
options, restricted stock awards and units, unrestricted stock awards and other equity-based awards to employees
who perform services for the Company. A maximum of 120.0 million shares of common stock may be awarded
under the 2006 LTIP, of which 36.2 million shares are available as of December 31, 2010.
Options granted under the 2006 LTIP are issued with exercise prices equal to the fair value of Western Union
common stock on the grant date, have 10-year terms, and vest over four equal annual increments beginning
12 months after the date of grant. Compensation expense related to stock options is recognized over the requisite
service period. The requisite service period for stock options is the same as the vesting period, with the exception of
retirement eligible employees, who have shorter requisite service periods ending when the employees become
retirement eligible.
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