Western Union 2011 Annual Report Download - page 74

Interest rates for borrowings are based on market rates at the time of issuance. Our commercial paper borrowings
as of December 31, 2011 had a weighted-average annual interest rate of approximately 0.6% and a weighted-
average term of 9 days. During the year ended December 31, 2011, the average commercial paper balance
outstanding was $89.7 million and the maximum balance outstanding was $784.1 million. Proceeds from our
commercial paper borrowings were used for general liquidity. We had $297.0 million of commercial paper
outstanding as of December 31, 2011.
Revolving Credit Facility
On September 23, 2011, we entered into a credit agreement which expires January 2017 providing for
unsecured financing facilities in an aggregate amount of $1.65 billion, including a $250.0 million letter of credit
sub-facility and a $150.0 million swing line sub-facility. The Revolving Credit Facility replaced our $1.5 billion
revolving credit facility that was set to expire in September 2012.
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 90 basis points. A facility fee of 10 basis points is also payable quarterly on the total
facility, regardless of usage. Both the interest rate margin and facility fee percentage are based on certain of our
credit ratings.
The purpose of our Revolving Credit Facility, which is diversified through a group of 17 participating
institutions, is to provide general liquidity 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 $1.65 billion is approximately 12%. As of and during the year ended December 31,
2011, we had no outstanding borrowings under our $1.65 billion revolving credit facility. As of December 31,
2011, we had $297.0 million of commercial paper borrowings outstanding, which left $1,353.0 million remaining
that was available to borrow on the Revolving Credit Facility. 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.
Notes
On August 22, 2011, we issued $400.0 million of aggregate principal amount of unsecured notes due
August 22, 2018 for general corporate purposes, including repayment of debt. Interest with respect to the 2018
Notes is payable semi-annually in arrears on February 22 and August 22 each year based on the fixed per annum
interest rate of 3.650%. We may redeem the 2018 Notes at any time prior to maturity at the greater of par or a
price based on the applicable treasury rate plus 35 basis points.
On March 7, 2011, we issued $300.0 million of aggregate principal amount of unsecured floating rate notes
due March 7, 2013 for general corporate purposes. Interest with respect to the 2013 Notes is payable quarterly in
arrears on each March 7, June 7, September 7 and December 7, beginning June 7, 2011, at a per annum interest
rate equal to the three-month LIBOR plus 58 basis points (reset quarterly).
On June 21, 2010, we issued $250.0 million of aggregate principal amount of unsecured notes due June 21,
2040 (“2040 Notes”). Interest with respect to the 2040 Notes is payable semi-annually on June 21 and
December 21 each year based on the fixed per annum interest rate of 6.200%. We may redeem the 2040 Notes at
any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 30 basis
points.
On March 30, 2010, we exchanged $303.7 million of aggregate principal amount of unsecured notes due
November 17, 2011 (“2011 Notes”) for unsecured notes due April 1, 2020 (“2020 Notes”). Interest with respect
to the 2020 Notes is payable semi-annually on April 1 and October 1 each year based on the fixed per annum
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