Western Union 2015 Annual Report Download - page 177

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Commercial Paper Program
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, reduced to the extent of borrowings outstanding on our Revolving Credit Facility in excess of $150
million. 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. As of December 31, 2015 and 2014, we had no commercial paper borrowings
outstanding. During the years ended December 31, 2015 and 2014, the average commercial paper balance outstanding was $27.0
million and $13.3 million, respectively, and the maximum balance outstanding was $440.0 million and $200.0 million, respectively.
We had a maximum balance outstanding of $50 million for one day during the year ended December 31, 2013. Proceeds from our
commercial paper borrowings were used for general corporate purposes and working capital needs.
Revolving Credit Facility
On September 29, 2015, we entered into a credit agreement which expires in September 2020 providing for unsecured financing
facilities in an aggregate amount of $1.65 billion, including a $250.0 million letter of credit sub-facility. The Revolving Credit
Facility replaced our $1.65 billion revolving credit facility that was set to expire in January 2017.
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 110 basis points. A
facility fee of 15 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 18 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 11%. As of
and during the years ended December 31, 2015 and 2014, we had no outstanding borrowings under our revolving credit facilities.
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 November 22, 2013, we issued $250.0 million of aggregate principal amount of unsecured notes due May 22, 2019 ("2019
Notes"). Interest with respect to the 2019 Notes is payable semi-annually in arrears on May 22 and November 22 of each year,
beginning on May 22, 2014, based on the fixed per annum rate of 3.350%. The interest rate payable on the 2019 Notes will be
increased if the debt rating assigned to the note is downgraded by an applicable credit rating agency, beginning at a downgrade
below investment grade. However, in no event will the interest rate on the 2019 Notes be increased by more than 2.00% above
3.350% per annum. The interest rate payable on the 2019 Notes may also be adjusted downward for debt rating upgrades subsequent
to any debt rating downgrades but may not be adjusted below 3.350% per annum. We may redeem the 2019 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 August 22, 2013, we issued $250.0 million of aggregate principal amount of unsecured floating rate notes due August 21,
2015 ("2015 Floating Rate Notes"). Interest with respect to the 2015 Floating Rate Notes was payable quarterly in arrears on each
February 21, May 21, August 21, and November 21, beginning November 21, 2013, at a per annum rate equal to the three-month
LIBOR plus 1.0% (reset quarterly). The 2015 Floating Rate Notes matured and were repaid from our cash balances in August
2015.
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