First Data 2008 Annual Report Download - page 154

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
An affiliate of Lehman Brothers Holdings Inc. ("Lehman") provides a commitment in the amount of $230.6 million of the Company's $2.0 billion
senior secured revolving credit facility. After filing for bankruptcy in September 2008, the affiliate declined to participate in a request for funding under the
Company's senior secured revolving credit agreement and the Company has no assurances that they will participate in any future funding requests or that the
Company could obtain replacement loan commitments from other banks. In the event the Company decides to draw upon the senior secured revolving credit
facility and the affiliate of Lehman does not fund its obligation in accordance with the credit agreement, the Company believes its remaining capacity under
its senior secured revolving credit facility is sufficient to meet its short-term and long-term liquidity needs. There are multiple institutions that have
commitments under this facility with none representing more than approximately 15% of the remaining capacity. The Company is monitoring the financial
stability of other financial institutions that have made commitments under the revolving credit facility. Certain of these financial institutions are receiving
support from the federal government in light of current financial conditions. Although these financial institutions remain highly-rated (in the "A" category or
higher), their ability to satisfy their commitments may be dependent on receiving continued support from the federal government. As of December 31, 2008,
$1.7 billion remained available under the revolving credit facility after considering the outstanding amount, letters of credit issued under it and the Lehman
default.
Other short-term borrowings
The Company has approximately $609 million available under short-term lines of credit and other arrangements with foreign banks and joint venture
partners to fund settlement activity. Certain of these arrangements are uncommitted (approximately $226 million) but, as of the periods presented, the
Company had some borrowings outstanding against them. These arrangements are primarily associated with First Data Deutschland, Cashcard Australia, Ltd.,
the joint venture with AIB, First Data Polska and the Merchant Solutions joint venture and are in various functional currencies, the most significant of which
are the euro, Australian dollar and Polish zloty. The weighted average interest rates associated with these arrangements were 4.2% and 5.3% as of
December 31, 2008 and 2007, respectively. Commitment fees for the committed lines of credit range from 0.2% to 0.8%.
Long-term debt repurchases and principal repayments
In December 2008, the Company repurchased debt as follows:
(in millions)
Principal
Amount
Repurchased
3.90% Notes due 2009 4.6
4.50% Notes due 2010 8.3
5.625% Notes due 2011 9.1
4.70% Notes due 2013 3.9
4.85% Notes due 2014 2.9
4.95% Notes due 2015 1.2
$ 30.0
The Company recognized a $7.0 million gain in connection with the debt repurchase. Also during 2008, the Company paid off its medium-term note
due in 2008 for $13.6 million and its 3.375% Note for $68.1 million also due in 2008.
In December 2007, the Company paid off its medium-term note due in 2008 for $25.6 million. On September 24, 2007, in conjunction with the merger,
the Company repurchased $2.0 billion of long-term debt.
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