Medco 2014 Annual Report Download - page 79

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Express Scripts 2014 Annual Report
TheJune2014seniornotes(the“June2014SeniorNotes”)consistof:
• $500.0millionaggregateprincipalamountof1.250%seniornotesdue2017(“June2017SeniorNotes”)
• $1,000.0millionaggregateprincipalamountof2.250%seniornotesdue2019(“June2019SeniorNotes”)
• $1,000.0millionaggregateprincipalamountof3.500%seniornotesdue2024(“June2024SeniorNotes”)
TheJune2017SeniorNotesrequireinteresttobepaidsemiannuallyonJune2andDecember2.TheJune2019
SeniorNotesandtheJune2024SeniorNotesrequireinteresttobepaidsemiannuallyonJune15andDecember15.TheJune
2014SeniorNotesareredeemablepriortomaturityatapriceequaltothegreaterof(1)100%oftheaggregateprincipal
amountofanynotesbeingredeemed,plusaccruedandunpaidinterest;or(2)thesumofthepresentvaluesoftheremaining
scheduledpaymentsofprincipalandinterestonthenotesbeingredeemed,notincludingunpaidinterestaccruedtothe
redemptiondate,discountedtotheredemptiondateonasemiannualbasis(assuminga360-dayyearconsistingoftwelve30-
daymonths)atthetreasuryrateplus10basispointswithrespecttoanyJune2017SeniorNotesbeingredeemed,15basis
pointswithrespecttoanyJune2019SeniorNotesbeingredeemed,or20basispointswithrespecttoanyJune2024Senior
Notesbeingredeemedplus,ineachcase,unpaidinterestonthenotesbeingredeemed,accruedtotheredemptiondate.The
June2014SeniorNotesarejointlyandseverallyandfullyandunconditionally(subjecttocertaincustomaryreleaseprovisions,
includingsale,exchange,transferorliquidationoftheguarantorsubsidiary)guaranteedonaseniorunsecuredbasisbymostof
ourcurrentandfuture100%owneddomesticsubsidiaries.
FINANCING COSTS
Financingcostsof$13.3millionfortheissuanceoftheJune2009SeniorNotesarebeingamortizedovera
weighted-averageperiodof5.2years.Financingcostsof$10.9millionfortheissuanceoftheMay2011SeniorNotesarebeing
amortizedover5years.Financingcostsof$29.9millionfortheissuanceoftheNovember2011SeniorNotesarebeing
amortizedoveraweighted-averageperiodof12.1years.Financingcostsof$22.5millionfortheissuanceoftheFebruary2012
SeniorNotesarebeingamortizedoveraweighted-averageperiodof6.2years.Financingcostsof$18.6millionforthe
issuanceoftheJune2014SeniorNotesarebeingamortizedoveraweighted-averageperiodof6.6years.Financingcostsof
$36.1millionrelatedtothetermfacilityandrevolvingfacilityarebeingamortizedover4.4years.
Deferredfinancingcostsarereflectedinmiscellaneousintangibleassets,netintheaccompanyingconsolidated
balancesheet.
COVENANTS
Ourbankfinancingarrangementsandseniornotescontaincertaincustomarycovenantsthatrestrictourabilityto
incuradditionalindebtedness,createorpermitliensonassetsandengageinmergersorconsolidations.Thecovenantsrelatedto
bankfinancingarrangementsalsoinclude,amongotherthings,minimuminterestcoverageratiosandmaximumleverageratios.
TheMarch2008SeniorNotesarealsosubjecttoaninterestrateadjustmentintheeventofadowngradeintheratingstobelow
investmentgrade.AtDecember31,2014,wewereincompliancewithallcovenantsassociatedwithourdebtinstruments,
includingthecreditagreementandourseniornotes.
Followingisascheduleofcurrentmaturities,excludingunamortizeddiscountsandpremiums,forourlong-term
debtasofDecember31,2014(inmillions):
Year Ended December 31,
2015 $2,552.6
2016 1,763.2
2017 2,000.0
2018 1,200.0
2019 1,500.0
Thereafter 4,450.0
$13,465.8
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