Express Scripts 2014 Annual Report Download - page 77

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Express Scripts 2014 Annual Report
facilityandtherevolvingfacilitybothmatureonAugust29,2016.AsofDecember31,2014,noamountsweredrawnunderthe
revolvingfacility.TheCompanymakesquarterlyprincipalpaymentsonthetermfacility.AsofDecember31,2014,$1,315.8
millionisoutstandingunderthetermfacilitywithanaverageinterestrateof1.90%,ofwhich$1,052.6millionisconsidered
currentmaturitiesoflong-termdebt.
ThecreditagreementrequiresinteresttobepaidattheLIBORoradjustedbaserateoptions,plusamargin.The
marginoverLIBORrangesfrom1.25%to1.75%forthetermfacilityand1.10%to1.55%fortherevolvingfacility,andthe
marginoverthebaserateoptionsrangesfrom0.25%to0.75%forthetermfacilityand0.10%to0.55%fortherevolving
facility,dependingonourconsolidatedleverageratio.Underthecreditagreement,wearerequiredtopaycommitmentfeeson
theunusedportionofthe$1,500.0millionrevolvingfacility.Thecommitmentfeerangesfrom0.15%to0.20%dependingon
ourconsolidatedleverageratio.
InDecember2014,theCompanyenteredintocreditagreementsprovidingforthreeuncommittedrevolvingcredit
facilities(the“2014creditfacilities”),eachfor$150.0million,whichareavailableforgeneralcorporatepurposes.The2014
creditfacilitiesareavailablefromDecember17,2014untilDecember16,2015,fromJanuary2,2015untilJanuary2,2016
andfromDecember19,2014untilDecember19,2015,respectively.AsofDecember31,2014,noamountsweredrawnunder
the2014creditfacilities.Thematuritydateofeachloandrawnunderthe2014creditfacilitiescanbespecifiedbytheCompany
intheborrowingrequestbutshallnotbemorethanthreemonthsfromthedateofsuchloanandshallbeonorpriortothe
terminationdate.ThecreditfacilitiesrequireinteresttobepaidatLIBORplusanagreeduponrateatthetimeofborrowing.
SENIOR NOTES
FollowingtheconsummationoftheMergeronApril2,2012,severalseriesofseniornotesissuedbyMedcoare
reportedasdebtobligationsofExpressScripts.
TheMarch2008seniornotes(the“March2008SeniorNotes”)consistof$1,200.0millionaggregateprincipal
amountof7.125%seniornotesdue2018.TheMarch2008SeniorNotesrequireinteresttobepaidsemi-annuallyon
March15andSeptember15andareredeemablepriortomaturityatapriceequaltothegreaterof(1)100%oftheaggregate
principalamountofanynotesbeingredeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvaluesofthe
remainingscheduledpaymentsofprincipalandinterestonthenotesbeingredeemed,notincludingunpaidinterestaccruedto
theredemptiondate,discountedtotheredemptiondateonasemiannualbasis(assuminga360-dayyearconsistingoftwelve
30-daymonths)atthetreasuryrateplus50basispointswithrespecttoanyMarch2008SeniorNotesbeingredeemed,plus,in
eachcase,unpaidinterestonthenotesbeingredeemedaccruedtotheredemptiondate.TheMarch2008SeniorNotes,issued
byMedco,arejointlyandseverallyandfullyandunconditionally(subjecttocertaincustomaryreleaseprovisions,including
sale,exchange,transferorliquidationoftheguarantorsubsidiary)guaranteedonaseniorbasisbyusandmostofourcurrent
andfuture100%owneddomesticsubsidiaries.
TheJune2009seniornotes(the“June2009SeniorNotes”)consistof$500.0millionaggregateprincipalamountof
7.250%seniornotesdue2019.TheJune2009SeniorNotesrequireinteresttobepaidsemi-annuallyonJune15andDecember
15andareredeemablepriortomaturityatapriceequaltothegreaterof(1)100%oftheaggregateprincipalamountofany
notesbeingredeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvaluesoftheremainingscheduled
paymentsofprincipalandinterestonthenotesbeingredeemed,notincludingunpaidinterestaccruedtotheredemptiondate,
discountedtotheredemptiondateonasemiannualbasisatthetreasuryrateplus50basispointswithrespecttoanynotesbeing
redeemed,plusineachcase,unpaidinterestonthenotesbeingredeemedaccruedtotheredemptiondate.TheJune2009Senior
Notes,issuedbyESI,arejointlyandseverallyandfullyandunconditionally(subjecttocertaincustomaryreleaseprovisions,
includingsale,exchange,transferorliquidationoftheguarantorsubsidiary)guaranteedonaseniorunsecuredbasisbyusand
mostofourcurrentandfuture100%owneddomesticsubsidiaries.
TheSeptember2010seniornotes(the“September2010SeniorNotes”)consistof:
• $500.0millionaggregateprincipalamountof2.750%seniornotesdue2015(the“September2015Senior
Notes”)
• $500.0millionaggregateprincipalamountof4.125%seniornotesdue2020(the“September2020Senior
Notes”)
TheSeptember2010SeniorNotesrequireinteresttobepaidsemi-annuallyonMarch15andSeptember15andare
redeemablepriortomaturityatapriceequaltothegreaterof(1)100%oftheaggregateprincipalamountofanynotesbeing
redeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvaluesoftheremainingscheduledpaymentsof
principalandinterestonthenotesbeingredeemed,notincludingunpaidinterestaccruedtotheredemptiondate,discountedto
theredemptiondateonasemiannualbasis(assuminga360-dayyearconsistingoftwelve30-daymonths)atthetreasuryrate
plus20basispointswithrespecttoanySeptember2015SeniorNotesbeingredeemed,or25basispointswithrespecttoany
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