Computer Associates 2015 Annual Report Download - page 82

Note 8 — Debt
At March 31, 2015 and 2014, the Company’s debt obligations consisted of the following:
AT MARCH 31,
(in millions) 2015 2014
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
Interest expense for fiscal years 2015, 2014 and 2013 was $77 million, $75 million and $64 million, respectively.
The maturities of outstanding debt are as follows:
YEAR ENDED MARCH 31,
(in millions) 2016 2017 2018 2019 2020 THEREAFTER
Amount due $ 10 $ 5 $ 1 $ 250 $ 748 $ 249
Revolving Credit Facility: In June 2013, the Company amended its 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 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. In April 2015, the Company amended
its revolving credit facility to extend the termination date from June 2018 to June 2019.
Advances under the revolving credit facility bear interest at a rate dependent on the Company’s credit ratings at the time of
those 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, 2015 and 2014, there were no outstanding borrowings under the revolving credit facility and, based on the
Company’s credit ratings, the rates applicable to the facility at March 31, 2015 and 2014 were as follows:
AT MARCH 31,
2015 2014
Applicable margin on Base Rate borrowing 0.125% 0.125%
Weighted average interest rate on outstanding borrowings —% —%
Applicable margin on Eurocurrency Rate borrowing 1.000% 1.000%
Facility commitment fee 0.125% 0.125%
The interest rate that would have applied at March 31, 2015 to a borrowing under the amended revolving credit facility
would have been 3.38% for Base Rate borrowings and 1.18% for Eurocurrency Rate borrowings. The Company capitalized
the transaction fees of approximately $1 million associated with the June 2013 amendment of the revolving credit facility.
These fees are being amortized to ‘‘Interest expense, net’’ in the Consolidated Statements of Operations.
There was no borrowing activity under the revolving credit facility for fiscal years 2015, 2014 and 2013. The revolving credit
facility contains customary covenants for borrowings of this type, including two financial covenants: (i) as of any date, for
the period of four fiscal quarters ended on or immediately prior to such date, the ratio of consolidated debt for borrowed
money to consolidated cash flow, each as defined in the revolving credit facility agreement, must not exceed 4.00 to 1.00;
and (ii) as of any date, for the period of four fiscal quarters ended on or immediately prior to such date, the ratio of
consolidated cash flow to the sum of interest payable on, and amortization of debt discount in respect of, all consolidated
79