Western Union 2013 Annual Report Download - page 247

2013 FORM 10-K
THE WESTERN UNION COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
137
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 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. The Company has the ability to use cash, including cash generated from
operations, proceeds from the sale of non-settlement related investments, and the Revolving Credit Facility, and could also access
commercial paper and other financing sources to repay this debt obligation.
On November 17, 2006, the Company issued $500.0 million aggregate principal amount of 6.200% Notes due 2036 ("2036
Notes"). 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 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 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.
Certain of the Company’s notes (the 2019 Notes, 2015 Floating Rate Notes, 2015 Fixed Rate Notes, 2017 Notes, and 2018
Notes) include a change of control triggering event provision, as defined in the terms of the notes. If a change of control triggering
event occurs, holders of the notes may require the Company to repurchase some or all of their notes at a price equal to 101% of
the principal amount of their notes, plus any accrued and unpaid interest. A change of control triggering event will occur when
there is a change of control involving the Company and among other things, within a specified period in relation to the change of
control, the notes are downgraded from an investment grade rating to below an investment grade rating by all three major credit
rating agencies.