Computer Associates 2012 Annual Report Download - page 84

Note 9 — Debt
At March 31, 2012 and 2011, the Company’s debt obligations consisted of the following:
AT MARCH 31,
(in millions) 2012 2011
Revolving credit facility due August 2012 $— $ $250
Revolving credit facility due August 2016 ——
5.375% Notes due November 2019 750 750
6.125% Notes due December 2014, net of unamortized premium from fair value hedge of $27
and $15 527 515
Other indebtedness, primarily capital leases 29 42
Unamortized discount for Notes (5) (6)
Total debt outstanding $ 1,301 $ 1,551
Less the current portion (14) (269)
Total long-term debt portion $ 1,287 $ 1,282
Interest expense for fiscal years 2012, 2011 and 2010 was $64 million, $68 million and $102 million, respectively.
The maturities of outstanding debt are as follows:
YEAR ENDED MARCH 31,
(in millions) 2013 2014 2015 2016 2017 THEREAFTER
Amount due $ 14 $ 12 $ 529 $ 1 $ 0 $ 745
Revolving Credit Facility: In April 2011, the Company repaid the outstanding balance of $250 million on the revolving credit facility
that was due August 2012. In August 2011, the Company replaced the revolving credit facility due August 2012 with a new revolving
credit facility due August 2016.
The maximum committed amount available under the revolving credit facility due August 2016 is $1 billion. The facility also
provides the Company with an option to increase the available credit by an amount up to $500 million. This option is subject to
certain conditions and the agreement of the facility lenders.
Advances under the revolving credit facility due August 2016 bear interest at a rate dependent on the Company’s credit ratings at the
time of such borrowings and are calculated according to a Base Rate or a Eurocurrency Rate, as the case may be, plus an applicable
margin. The Company must also pay facility commitment fees quarterly on the full revolving credit commitment at rates dependent on
the Company’s credit ratings.
At March 31, 2012, there were no outstanding borrowings under the revolving credit facility due August 2016 and, based on the
Company’s credit ratings, the rates applicable to the facility at March 31, 2012 and 2011 were as follows:
AT MARCH 31,
2012 2011
Applicable margin on Base Rate borrowing 0.25% —%
Weighted average interest rate on outstanding borrowings —% 0.65%
Applicable margin on Eurocurrency Rate borrowing 1.10% 0.35%
Utilization fee 0% 0.10%
Facility commitment fee 0.15% 0.10%
The interest rate that would have applied at March 31, 2012 to a borrowing under the revolving credit facility due August 2016 would
have been 3.50% for Base Rate borrowings and 1.34% for Eurocurrency Rate borrowings. The Company capitalized the transaction
fees of approximately $2 million associated with the revolving credit facility due August 2016. These fees are being amortized to
“Interest expense, net” in the Consolidated Statements of Operations.
Total interest expense relating to borrowings under the revolving credit facility for fiscal years 2012, 2011 and 2010 was less than $1
million, $2 million and $5 million, respectively. The revolving credit facility due August 2016 contains customary covenants for
borrowings of this type, including two financial covenants: (i) for the 12 months ending each quarter-end, the ratio of consolidated
debt for borrowed money to consolidated cash flow, each as defined in the revolving credit facility Credit Agreement, must not
exceed 4.00 to 1.00; and (ii) for the 12 months ending at any date, the ratio of consolidated cash flow to the sum of interest payable
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