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59 Textron Inc. Annual Report • 2013
Note 7. Debt and Credit Facilities
Our debt is summarized in the table below:
(In millions)
December 28,
2013
December 29,
2012
Manufacturing group
Long-term senior debt:
3.875% due 2013 $ — $ 318
4.50% convertible senior notes due 2013 — 210
6.20% due 2015 350 350
4.625% due 2016 250 250
Variable-rate note due 2016 (average rate of 1.54%) 150 —
5.60% due 2017 350 350
7.25% due 2019 250 250
6.625% due 2020 246 242
5.95% due 2021 250 250
Other (weighted-average rate of 1.57% and 1.52%, respectively) 85 81
1,931 2,301
Less: Current portion of long-term debt (8) (535)
Total Long-term debt 1,923 1,766
Total Manufacturing group debt $ 1,931 $ 2,301
Finance group
Fixed-rate notes due 2013 (weighted-average rate of 5.28%) $ — $ 400
Variable-rate note due 2013 (weighted-average rate of 1.21%) — 48
Fixed-rate note due 2014 (5.13%) 100 100
Fixed-rate notes due 2013-2017* (weighted-average rate of 4.59% and 4.88%, respectively) 42 102
Variable-rate notes due 2016 (weighted-average rate of 1.78%) 200 —
Fixed-rate notes due 2017-2023* (weighted-average rate of 2.67% and 2.70%, respectively) 378 382
Variable-rate notes due 2015-2020* (weighted-average rate of 1.19% and 1.09%, respectively) 63 64
Securitized debt (weighted-average rate of 1.50% and 1.55%, respectively) 172 282
6% Fixed-to-Floating Rate Junior Subordinated Notes 299 300
Fair value adjustments and unamortized discount 2 8
Total Finance group debt $ 1,256 $ 1,686
* Notes amortize on a quarterly or semi-annual basis.
The following table shows required payments during the next five years on debt outstanding at December 28, 2013:
(In millions) 2014 2015 2016 2017 2018
Manufacturing group $ 8 $ 357 $ 408 $ 358 $ 7
Finance group 223 148 302 92 67
Total $ 230 $ 505 $ 710 $ 450 $ 74
During the fourth quarter of 2013, Textron entered into a senior unsecured revolving credit facility for an aggregate principal
amount of $1.0 billion, of which up to $100 million is available for the issuance of letters of credit. This facility expires in October
2018. At December 28, 2013, there were no amounts borrowed against the facility, and there were $35 million of letters of credit
issued against it.
On January 30, 2014, we issued $250 million in 3.65% notes due 2021 and $350 million in 4.30% notes due 2024 under our shelf
registration statement. We plan to use the net proceeds of the issuance of these notes to finance a portion of the acquisition of all
outstanding equity interests in Beech Holdings, LLC, the parent of Beechcraft Corporation, which we have agreed to purchase for
approximately $1.4 billion in cash. The transaction is expected to close during the first half of 2014, subject to customary closing
conditions, including regulatory approvals. If the transaction is not completed, or the related merger agreement is terminated, on
or before December 31, 2014, we will be required to redeem all outstanding 2021 notes at a redemption price equal to 101% of the
principal amount thereof, plus accrued and unpaid interest.
On January 24, 2014, in order to finance the Beechcraft acquisition, we also entered into a five-year term loan with a syndicate of
banks in the principal amount of $500 million which we intend to draw down upon the closing of the transaction.