Western Union 2015 Annual Report Download - page 178

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On December 10, 2012, we issued $250.0 million and $500.0 million of aggregate principal amounts of unsecured notes due
December 10, 2015 ("2015 Fixed Rate Notes") and December 10, 2017 ("2017 Notes"), respectively. The 2015 Fixed Rate Notes
matured and were repaid from our cash balances in December 2015. Interest with respect to the 2017 Notes is payable semi-
annually in arrears on June 10 and December 10 of each year, currently based on the per annum rate of 2.875%. The interest rate
payable on the 2017 Notes will be increased if the debt rating assigned to such notes 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 2017 Notes be
increased by more than 2.00% above 2.875% per annum. The interest rate on the 2017 Notes may also be adjusted downward for
debt rating upgrades subsequent to any debt rating downgrades but may not be adjusted below 2.875% per annum. We may redeem
the 2017 Notes at any time prior to maturity at the greater of par or a price based on the applicable treasury rate plus 40 basis
points.
On August 22, 2011, we issued $400.0 million of aggregate principal amount of unsecured notes due August 22, 2018 ("2018
Notes"). Interest with respect to the 2018 Notes is payable semi-annually in arrears on February 22 and August 22 of each year,
based on the fixed per annum 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 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 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
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 rate of 5.253%. In connection with the exchange, note holders were given
a 7% premium ($21.2 million), which approximated market value at the exchange date, as additional principal. As this transaction
was accounted for as a debt modification, this premium was not charged to expense. Rather, the premium, along with the offsetting
hedge accounting adjustments, will be accreted into "Interest expense" over the life of the notes. We 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.
On November 17, 2006, we issued $500.0 million of aggregate principal amount of unsecured notes due November 17, 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%. We 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, we 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 the fixed per
annum rate of 5.930%. We 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.
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