First Data 2009 Annual Report Download - page 143

FIRST DATA CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Other short-term borrowings
The Company had approximately $564 million and $656 million available under short-term lines of credit
and other arrangements with foreign banks and alliance partners primarily to fund settlement activity, as of
December 31, 2009 and December 31, 2008, respectively. Certain of these arrangements are uncommitted
(approximately $184 million and $273 million, respectively) but, as of the periods presented, the Company had
some borrowings outstanding against them. These arrangements are primarily associated with international
operations 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 3.3% and 4.2% as
of December 31, 2009 and 2008, respectively. Commitment fees for the committed lines of credit range from
0.1% to 2.0%.
Long-term debt repurchases and principal repayments
In 2009, the Company paid off its 3.90% Note due in 2009 for $10.7 million.
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
In 2008, 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.
The gains and losses resulting from the debt repurchases were included in the “Other income (expense)” line
of the Consolidated Statements of Operations.
Senior secured term loan facility
In connection with the merger in 2007, the Company entered into a $13.0 billion senior secured term loan
facility with a term of seven years. At the merger date, the Company drew $11,775 million in the form of a U.S.
dollar denominated loan and $1,000 million in the form of a euro denominated loan (709.2 million euro). The
remaining $225 million was available in the form of a delayed draw term loan facility which expired in
December 2008. Interest is payable based upon LIBOR plus an applicable margin.
As of December 31, 2009, the Company had interest rate swaps which were designated as cash flow hedges
of the variability in the interest payments on $4.5 billion of the approximate $12.6 billion variable rate senior
secured term loan. The Company had additional interest rate swaps with notional amounts totaling $3 billion that
ceased to qualify for hedge accounting during the first and second quarters of 2009. The Company also had basis
rate swaps that modify the variable rates on $4.0 billion of the $7.5 billion interest rate swaps and that lower the
143