World Fuel Services 2008 Annual Report Download - page 76

WORLD FUEL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Borrowings under our Credit Facility bear interest at market rates plus applicable margins ranging from zero
percent to 1.5% for U.S. Prime Rate loans and 1.00% to 2.50% for LIBOR Rate loans. The unused portion of our
Credit Facility is subject to fees (“Commitment Fees”) ranging from 0.20% to 0.375%. Letters of credit issued
under our Credit Facility are subject to fees (“L/C Fees”) ranging from 1.00% to 2.50%. Interest, Commitment
Fees and L/C Fees are payable quarterly and at maturity in arrears. As of December 31, 2008, our Commitment
Fees and L/C Fees rates were 0.20% and 1.00%, respectively.
Our Credit Facility contains certain operating and financial covenants with which we are required to
comply. Our failure to comply with the operating and financial covenants contained in our Credit Facility could
result in an event of default. An event of default, if not cured or waived, would permit acceleration of any
outstanding indebtedness under the Credit Facility; trigger cross-defaults under other agreements to which we are
a party and impair our ability to obtain working capital advances and letters of credit, which would have a
material adverse effect on our business, financial condition and results of operations.
Outside of our Credit Facility we have unsecured credit lines aggregating to $50.0 million for the issuance
of letters of credit and bank guarantees. Letters of credit and bank guarantees issued under these credit lines are
subject to fees at market rates payable semiannually and at maturity in arrears. These credit lines are renewable
on an annual basis. As of December 31, 2008, our outstanding letters of credit and bank guarantees under these
credit lines totaled $20.9 million.
Additionally, we have a separate $15.0 million credit facility for the issuance of bankers’ acceptances (the
“BA Facility”) with one of the banks participating in our Credit Facility. The BA Facility will remain in full
force and effect until revoked by us or the bank. Bankers’ acceptances issued under the BA Facility are subject to
commissions and fees (finance charges) at the bank’s prevailing rate on the date of acceptance. As of
December 31, 2008, we recorded debt of $14.7 million, net of finance charges of $0.1 million which will be
recognized over the term of the bankers’ acceptances.
Substantially all of the letters of credit and bank guarantees issued under our Credit Facility and the
unsecured credit lines were provided to suppliers in the normal course of business and generally expire within
one year from their issuance. Expired letters of credit and bank guarantees are renewed as needed.
Our debt consisted of the following (in thousands):
As of December 31,
2008 2007
Borrowings under Credit Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $40,000
Banker’s acceptances under BA Facility, payable in March
2009.............................................. 14,670 —
Promissory note issued in connection with acquired business,
payable in three equal annual installments starting in June
2009.............................................. 14,000 —
5.0% promissory note issued in connection with acquired
business, payable in December 2009 . . . . . . . . . . . . . . . . . . . . 4,295 5,000
5.0% promissory note issued in connection with acquired
business, payable in March 2009 . . . . . . . . . . . . . . . . . . . . . . . 53 53
Other ............................................... 359 191
Totaldebt........................................ 33,377 45,244
Short-termdebt ............................... 23,840 53
Long-termdebt ............................... $ 9,537 $45,191
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