Graco 2005 Annual Report Download - page 55

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In November 2005, the Company entered into a $750.0 million syndicated revolving credit facility
(the ""Revolver'') pursuant to a Ñve-year credit agreement. The Revolver, which expires in November
2010, replaces the Company's $650.0 million Ñve-year Syndicated Revolving Credit Agreement that was
scheduled to expire in June 2007. At December 31, 2005, there were no borrowings under the Revolver.
In lieu of borrowings under the Revolver, the Company may issue up to $750.0 million of commercial
paper. The Revolver provides the committed backup liquidity required to issue commercial paper.
Accordingly, commercial paper may only be issued up to the amount available for borrowing under the
Revolver. The Revolver also provides for the issuance of up to $100.0 million of standby letters of credit so
long as there is a suÇcient amount available for borrowing under the Revolver. At December 31, 2005,
$202.0 million of commercial paper was outstanding and there were no standby letters of credit issued
under the Revolver.
The Revolver permits the Company to borrow funds on a variety of interest rate terms. The Revolver
requires, among other things, that the Company maintain certain Interest Coverage and Total
Indebtedness to Total Capital Ratios, as deÑned in the agreement. The Revolver also limits Subsidiary
Indebtedness. As of December 31, 2005, the Company was in compliance with the agreement governing
the Revolver.
FOOTNOTE 10
Long-term Debt
The following is a summary of long-term debt as of December 31, (in millions):
2005 2004
Medium-term notes (maturities ranging from 5 to 30 years, average
interest rate of 5.68%)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,475.0 $1,647.0
Commercial paper (average interest rate of 4.4%) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 202.0 Ì
Preferred debt securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 450.0 450.0
Junior convertible subordinated debentures ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 436.7 474.3
Terminated interest rate swapsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24.8 38.3
Other long-term debtÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.0 0.3
Total debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,592.5 2,609.9
Current portion of long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (162.8) (185.6)
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,429.7 $2,424.3
The following table summarizes the Company's average commercial paper obligations and interest
rate for the year ended December 31, (in millions, except percentages):
2005 2004
ÌBorrowing ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $30.7 $66.3
ÌAverage interest rate ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.5% 1.1%
The aggregate maturities of long-term debt outstanding are as follows as of December 31, 2005 (in
millions):
2006 2007 2008 2009 2010 Thereafter Total
$162.8 $253.4 $452.0 $252.3 $454.0 $1,018.0 $2,592.5
The medium-term notes, revolving credit agreement (and related commercial paper), preferred debt
securities, and junior convertible subordinated debentures are all unsecured.
Preferred Debt Securities: Under a 2001 receivables facility with a Ñnancial institution, the Company
created a Ñnancing entity that is consolidated in the Company's Ñnancial statements. Under this facility,
54