Graco 2010 Annual Report Download - page 62

Newell Rubbermaid Inc. 2010 Annual Report
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58 NEWELL RUBBERMAID 2010 Annual Report
FOOTNOTE 9
DEBT
The following is a summary of outstanding debt as of December 31, (in millions):
2010 2009
Medium-term notes (original maturities generally ranging from 5 to 10 years,
average stated interest rate of 5.62% as of December 31, 2010) $1,623.0 $1,426.6
Term loan 150.0 350.0
Convertible notes 17.5 284.3
Junior convertible subordinated debentures 436.7 436.7
Commercial paper 34.0 —
Receivables facility 100.0 —
Other debt 7.7 11.2
Total debt 2,368.9 2,508.8
Short-term debt (135.0) (0.6)
Current portion of long-term debt (170.0) (492.9)
Long-term debt $2,063.9 $2,015.3
During 2010, the Company’s average commercial paper obligations outstanding were $24.9 million at an average interest rate of
1.6%, which includes fees and commissions. The Company had no commercial paper obligations outstanding during 2009.
The aggregate maturities of debt outstanding, based on the earliest date the obligation may become due, are as follows as of
December 31, 2010 (in millions):
2011 2012 2013 2014 2015 Thereafter Total
$305.0 $260.5 $517.5 $ — $ — $1,285.9 $2,368.9
Medium-Term Notes
The Company’s outstanding medium-term notes consisted of the following principal amounts and interest rate swap values as of
December 31, (in millions):
2010 2009
6.75% senior notes due 2012 $ 250.0 $ 250.0
5.50% senior notes due 2013 500.0 500.0
6.25% senior notes due 2018 250.0 250.0
10.60% senior notes due 2019 20.7 293.1
4.70% senior notes due 2020 550.0 —
6.11% senior notes due 2028 10.0 10.0
4.00% senior notes due 2010 — 105.1
Interest rate swaps 42.3 18.4
Total medium-term notes $1,623.0 $1,426.6
As of December 31, 2010, the Company had entered into fixed-for-floating interest rate swaps designated as fair value hedges.
The interest rate swaps relate to $1.0 billion of the principal amount of the medium-term notes and result in the Company
effectively paying a floating rate of interest on the medium-term notes subject to the interest rate swaps. The medium-term
note balances at December 31, 2010 and 2009 include mark-to-market adjustments of $42.3 million and $18.4 million, respectively,
to record the fair value of the hedges of the fixed-rate debt, and the mark-to-market adjustments had the effect of increasing
the reported value of the medium-term notes. The interest rate swaps had the effect of reducing interest expense by $30.3 million
and $26.1 million for the years ended December 31, 2010 and 2009, respectively, compared to the stated rates of the underlying
medium-term notes.
In connection with the Capital Structure Optimization Plan (the “Plan”), the Company completed the offering and sale of
$550.0 million aggregate principal amount of 4.70% senior unsecured notes with a maturity of August 2020 (the “Notes”) in
August 2010. The net proceeds from this offering were $544.9 million, which together with cash on hand and short-term borrowings
were used to fund the repurchase of $500.0 million of shares of the Company’s common stock through the ASB and to complete
a cash tender offer for any and all of the $300.0 million principal amount of outstanding 10.60% notes due 2019. The Notes are
unsecured and unsubordinated obligations of the Company and equally rank with all of its existing and future senior unsecured
debt. The Notes may be redeemed by the Company at any time, in whole or in part, at a redemption price plus accrued and