Xerox 2007 Annual Report Download - page 107

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
The following summarizes the original principal amounts of those instruments as of December 31, 2007:
Senior Notes due 2009 ....................................................................... $ 600
Euro Senior Notes due 2009 .................................................................. 331
Senior Notes due 2010 ....................................................................... 700
Senior Notes due 2011 ....................................................................... 750
Senior Notes due 2012 ....................................................................... 1,100
Senior Notes due 2013 ....................................................................... 550
Notes due 2016 ............................................................................. 250
Senior Notes due 2016 ....................................................................... 700
Senior Notes due 2017 ....................................................................... 500
(2) Refer to Note 4 – Receivables, Net for further discussion of borrowings secured by finance receivables, net.
Scheduled payments due on long-term debt for the next five years and thereafter are as follows (in millions):
2008 2009 2010 2011 2012 Thereafter Total
$426(1) $1,552 $707 $808 $1,721 $2,151 $7,365
(1) Quarterly total debt maturities for 2008 are $106, $60, $223 and $37 for the first, second, third and fourth quarters,
respectively.
2007 Credit Facility
In 2007, we amended and restated our $1.25 billion
unsecured 2006 credit facility. The amended and restated
facility (the “2007 Credit Facility”) increased the
maximum amount available for borrowing to $2 billion
and includes a $300 letter of credit subfacility. The Facility
is available, without sublimit, to certain of our qualifying
subsidiaries and includes provisions that would allow us to
increase the overall size of the Facility up to an aggregate
amount of $2.5 billion. It matures in 2012, although we
have the right to request a one year extension on each of
the first and second anniversaries of the Facility. Our
obligations under the Facility are unsecured and are not
currently guaranteed by any of our subsidiaries. In the
event that any of our subsidiaries borrows under the
Facility, its borrowings thereunder would be guaranteed by
us.
Borrowings under the 2007 Credit Facility bear
interest at LIBOR plus a spread that will vary between
0.18% and 0.75% depending on our then current credit
ratings. The spread as of December 31, 2007 was 0.35%.
In addition, we are required to pay a facility fee on the
aggregate amount of the revolving credit facility. As of
December 31, 2007, we had borrowings of $600 and no
outstanding letters of credit under the 2007 Credit Facility
and the facility fee rate was 0.10%.
The facility contains various conditions to borrowing,
and affirmative, negative and financial maintenance
covenants. Certain of the more significant covenants are
summarized below:
(a) Maximum leverage ratio (a quarterly test that is
calculated as debt for borrowed money divided
by consolidated EBITDA) ranging from 4.00 to
3.25 over the life of the facility.
(b) Minimum interest coverage ratio (a quarterly
test that is calculated as consolidated EBITDA
divided by consolidated interest expense) may
not be less than 3.00:1.
(c) Limitations on (i) liens securing debt of Xerox and
certain of our subsidiaries, (ii) certain
fundamental changes to corporate structure,
(iii) changes in nature of business and
(iv) limitations on debt incurred by certain
subsidiaries.
The 2007 Credit Facility also contains various events
of default, the occurrence of which could result in a
termination by the lenders and the acceleration of all our
obligations under the Facility. These events of default
include, without limitation:
(i) payment defaults, (ii) breaches of covenants under
the Facility (certain of which breaches do not have
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