Crucial 2015 Annual Report Download - page 66

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64
Cash Redemption at Our Option: At any time prior to the maturity date of the 1.258% Notes, we may redeem the 1.258%
Notes, in whole or in part, at a price equal to the principal amount of the 1.258% Notes to be redeemed plus a make-whole
premium as described in the indenture, together with accrued and unpaid interest.
Senior Notes
Issuance
Date Maturity
Date Principal
Issued
2022 Notes Feb 2014 Feb 2022 $ 600
2023 Notes Feb 2015 Aug 2023 1,000
2024 Notes Apr 2015 Jan 2024 550
2025 Notes Jul 2014 Feb 2025 1,150
2026 Notes Apr 2015 Jan 2026 450
The senior notes above contain covenants that, among other things, limit, in certain circumstances, our ability and/or the
ability of our domestic restricted subsidiaries (which are generally subsidiaries in the U.S. in which we own at least 80% of the
voting stock) to (1) create or incur certain liens and enter into sale and lease-back transactions, (2) create, assume, incur, or
guarantee certain additional secured indebtedness and unsecured indebtedness of our domestic restricted subsidiaries, and (3)
consolidate with or merge with or into, or convey, transfer or lease all or substantially all of our assets, to another entity. These
covenants are subject to a number of limitations, exceptions, and qualifications.
Cash Redemption at Our Option: We have the option to redeem these notes. The applicable redemption price will be
determined as follows:
Redemption Period Requiring Payment of: Redemption up to 35% Using Cash Proceeds
From an Equity Offering(3)
Make-Whole(1) Premium(2) Date Specified Price
2022 Notes Prior to Feb 15, 2017 On or after Feb 15, 2017 Prior to Feb 15, 2017 105.875%
2023 Notes Prior to Feb 1, 2018 On or after Feb 1, 2018 Prior to Feb 1, 2018 105.250%
2024 Notes Prior to May 1, 2018 On or after May 1, 2018 Prior to May 1, 2018 105.250%
2025 Notes Prior to Aug 1, 2019 On or after Aug 1, 2019 Prior to Aug 1, 2017 105.500%
2026 Notes Prior to May 1, 2020 On or after May 1, 2020 Prior to May 1, 2018 105.625%
(1) If we redeem prior to the applicable date, the price is principal plus a make-whole premium equal to the present value
of the remaining scheduled interest payments as described in the applicable indenture, together with accrued and
unpaid interest.
(2) If we redeem on or after the applicable date, the price is principal plus a premium which declines over time as specified
in the applicable indenture, together with accrued and unpaid interest.
(3) If we redeem prior to the applicable date with net cash proceeds of one or more equity offerings, the price is equal to
the amount specified above, together with accrued and unpaid interest, subject to a maximum redemption of 35% of the
aggregate principal amount of the respective notes being redeemed.
Convertible Senior Notes
Accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion require
the debt and equity components to be separately accounted for in a manner that reflects a nonconvertible borrowing rate when
interest expense is recognized in subsequent periods. The amount initially recorded as debt is based on the fair value of the
debt component as a standalone instrument, determined using an interest rate for similar nonconvertible debt issued by entities
with credit ratings similar to ours at the time of issuance. The difference between the debt recorded at inception and its
principal amount is accreted to principal through interest expense over the estimated life of the note.