First Data 2011 Annual Report Download - page 47

(a) Total available without giving effect to amounts outstanding.
(b) Up to $500 million of the Company's senior secured revolving credit facility is available for letters of credit. Outstanding letters
of credit are held in connection with lease arrangements, bankcard association agreements and other security agreements. The
maximum amount of letters of credit outstanding during 2011 was approximately $52 million. All letters of credit expire prior
to December 10, 2012 with a one-year renewal option. FDC expects to renew most of the letters of credit prior to expiration.
(c) As of December 31, 2011, represents $267.2 million of committed lines of credit as well as certain uncommitted lines of credit
and other agreements that are available in various currencies to fund settlement and other activity for the Company's
international operations. FDC cannot use these lines of credit for general corporate purposes. Certain of these arrangements are
uncommitted but, as of the dates presented, FDC had borrowings outstanding against them.
In the event one or more of the aforementioned lines of credit becomes unavailable, FDC will utilize its existing cash, cash
flows from operating activities or its revolving credit facility to meet its liquidity needs.
Significant non-cash transactions. During 2011, 2010 and 2009, the principal amount of FDC's senior notes due 2015
increased by $73.1 million, $362.5 million and $333.0 million, respectively, resulting from the "payment" of accrued interest expense.
The decrease in the amount of interest expense accrued during 2011 is due to the December 2010 exchange of notes discussed below.
Beginning October 1, 2011, the interest on FDC's senior notes due 2015 is required to be paid in cash and the first such payment will
be paid in April 2012.
During 2011, 2010 and 2009, the Company entered into capital leases totaling approximately $137 million, $65 million and
$105 million, respectively.
The following summary details the Company's exchange offerings during 2009, 2010 and 2011.
• March 2009 — Exchanged the remaining balance of the Company's 9.875% senior unsecured cash-pay term loan
bridge loans due 2015 that was not previously exchanged for senior notes having substantially identical terms and
guarantees with the exception of interest payments being due semi-annually on March 31 and September 30 of each
year instead of quarterly.
• September 2009 - Exchanged aggregate principal amounts of $3.2 billion of its 10.55% senior PIK notes, $2.5 billion
of its 11.25% senior subordinated notes and $1.6 billion of its 9.875% senior notes (which constituted all such notes
outstanding at that date) for publicly tradable notes having substantially identical terms and guarantees, except that the
exchange notes are freely tradable. Substantially all of the notes were exchanged effective September 9, 2009.
• December 2010 - Exchanged $3.0 billion of its 9.875% senior notes due 2015 and $3.0 billion of its 10.550% senior
PIK notes due 2015 for $2.0 billion of 8.25% senior second lien notes due 2021, $1.0 billion of 8.75%/10.00% PIK
toggle senior second lien notes due 2022 and $3.0 billion of 12.625% senior notes due 2021.
• December 2011 — Exchanged substantially all of its aggregate principal amounts of $3 billion of its 12.625% senior
notes due 2021 for publicly tradable notes having substantially identical terms and guarantees, except that the exchange
notes will be freely tradable.
There were no expenditures, other than professional fees, or receipts of cash associated with the registration statements or
exchange offers described above.
In November 2011, the Company contributed the assets of its transportation business to the alliance in exchange for a 30%
interest in the alliance. Refer to Note 18 to the Company's Consolidated Financial Statements in Item 8 of this Form 10-K for
additional information.
On June 26, 2009, the Company entered into the BAMS alliance. The Company's and BofA's direct contributions to the alliance
consisted of non-cash assets and liabilities.
Guarantees and covenants.All obligations under the senior secured revolving credit facility and senior secured term loan
facility are unconditionally guaranteed by substantially all existing and future, direct and indirect, wholly owned, material domestic
subsidiaries of the Company other than IPS. The senior secured facilities contain a number of covenants that, among other things,
restrict the Company's ability to incur additional indebtedness; create liens; enter into sale-leaseback transactions; engage in mergers
or consolidations; sell or transfer assets; pay dividends and distributions or repurchase the Company's or its parent company's capital
stock; make investments, loans or advances; prepay certain indebtedness; make certain acquisitions; engage in certain transactions
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