Computer Associates 2015 Annual Report Download - page 49

Debt Arrangements
Our debt arrangements consisted of the following:
AT MARCH 31,
2015 2014
(in millions)
Revolving credit facility ——
5.375% Senior Notes due December 2019 750 750
6.125% Senior Notes due December 2014, net of unamortized premium from fair value hedge of $8 at
March 31, 2014 — 508
2.875% Senior Notes due August 2018 250 250
4.500% Senior Notes due August 2023 250 250
Other indebtedness, primarily capital leases 17 13
Unamortized discount for Senior Notes (4) (5)
Total debt outstanding $ 1,263 $ 1,766
Less the current portion (10) (514)
Total long-term debt portion $ 1,253 $ 1,252
During the third quarter of fiscal 2015, we repaid our 6.125% Senior Notes due December 2014 in full for $500 million. We
had interest rate swap derivatives with a total notional value of $500 million, which swapped a total of $500 million of our
6.125% Senior Notes due December 2014 into floating interest rate debt through December 1, 2014. These swaps were
designated as fair value hedges and matured in the third quarter of fiscal 2015. At March 31, 2015, we had no interest rate
swap derivatives outstanding.
In August 2013, we issued $250 million of 2.875% Senior Notes due August 2018 (2.875% Notes) and $250 million of
4.500% Senior Notes due August 2023 (4.500% Notes). The 2.875% Notes and 4.500% Notes are senior unsecured
obligations that rank equally in right of payment with all of our existing and future unsecured and unsubordinated
obligations and are redeemable by us at any time, subject to a ‘‘make-whole’’ premium of 25 basis points and 30 basis points
for the 2.875% Notes and 4.500% Notes, respectively. Interest on the 2.875% Notes and 4.500% Notes is payable
semiannually in August and February. The 2.875% Notes and 4.500% Notes contain customary covenants and events of
default. The maturity of the 2.875% Notes and the 4.500% Notes may be accelerated by holders upon certain events of
default, including failure to make payments when due and failure to comply with covenants.
In June 2013, we amended our revolving credit facility to extend the termination date from August 2016 to June 2018. The
maximum committed amount available under the revolving credit facility is $1 billion. The facility also provides us 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. At March 31, 2015 and 2014, there were no outstanding borrowings under the revolving
credit facility. In April 2015, we amended our revolving credit facility to extend the termination date from June 2018 to
June 2019.
At March 31, 2015, our senior unsecured notes were rated Baa2 (stable) by Moody’s Investor Services, BBB+ (stable) by
Standard and Poor’s, and BBB+ (stable) by Fitch Ratings.
From time to time, we examine our debt balances in light of market conditions and other factors and thus, the levels of our
debt balances may change. For further information on our debt balances, refer to Note 8, ‘‘Debt,’’ in the Notes to the
Consolidated Financial Statements.
Stock Repurchases
On May 14, 2014, our Board of Directors approved a stock repurchase program that authorized us to acquire up to
$1 billion of our common stock. We expect to complete the program by the end of fiscal 2017. We expect to fund the
program with available cash on hand and repurchase shares on the open market, through solicited or unsolicited privately
negotiated transactions or otherwise from time to time based on market conditions and other factors.
During fiscal 2015, we repurchased 7.2 million shares of our common stock for $215 million. At March 31, 2015, we
remained authorized to purchase $785 million of our common stock under our current stock repurchase program.
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