Western Union 2011 Annual Report Download - page 142

THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 $500.0 million of aggregate principal amount of unsecured notes
due February 26, 2014 (“2014 Notes”). Interest with respect to the 2014 Notes is payable semi-annually 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 Company’s and certain of its subsidiaries’
ability 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 $1.0 billion aggregate principal amount of 5.400% Notes due
2011 (“2011 Notes”) and $500.0 million aggregate principal amount of 6.200% Notes due 2036 (“2036 Notes”).
The 2011 Notes were redeemed upon maturity in November 2011.
Interest with respect to the 2036 Notes is payable semi-annually on May 17 and November 17 each year based
on the fixed per annum interest rate of 6.200%. The 2036 Notes are subject to covenants that, among other
things, limit or restrict the Company’s and certain of its subsidiaries’ ability 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 2036 Notes at any time prior to maturity at the greater of par or a price based on the
applicable treasury rate plus 25 basis points.
On September 29, 2006, the Company issued $1.0 billion of aggregate principal amount of unsecured notes
maturing on October 1, 2016 (“2016 Notes”). Interest on the 2016 Notes is payable semi-annually 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 Company’s and certain of its subsidiaries’ ability 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 36.1 million shares are available as of December 31, 2011.
Options granted under the 2006 LTIP are issued with exercise prices equal to the fair market value of Western
Union common stock on the grant date, have 10-year terms, and typically vest over four equal annual increments
beginning 12 months after the date of grant, with the exception of options granted to retirement eligible
employees, which will vest on a prorated basis. Compensation expense related to stock options is recognized
over the requisite service period.
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