Snapple 2009 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2009 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

9. Long-term Obligations
The following table summarizes the Company’s long-term debt obligations as of December 31, 2009 and 2008
(in millions):
December 31,
2009
December 31,
2008
Senior unsecured notes(1)................................... $ 2,542 $ 1,700
Revolving credit facility .................................... 405 —
Senior unsecured term loan A facility .......................... — 1,805
Less — current portion ..................................... — —
Subtotal .............................................. 2,947 3,505
Long-term capital lease obligations ............................ 13 17
Long-term obligations.................................... $ 2,960 $ 3,522
(1) The carrying amount includes an adjustment of $8 million related to the change in the fair value of interest rate
swaps designated as fair value hedges on the 2011 and 2012 Notes. See Note 10 for further information
regarding derivatives.
2009 Borrowings and Repayments
On November 20, 2009, the Board of Directors (the “Board”) authorized the Company to issue up to
$1,500 million of debt securities through the Securities and Exchange Commission shelf registration process. At
December 31, 2009, $650 million remained authorized to be issued following the issuance described below.
On December 21, 2009, the Company completed the issuance of $850 million aggregate principal amount of
senior unsecured notes consisting of $400 million of 1.70% senior notes (the “2011 Notes”) and $450 million of
2.35% senior notes (the “2012 Notes”) due December 21, 2011 and December 21, 2012, respectively.
On December 30, 2009, the Company borrowed $405 million from the revolving credit facility (“the
Revolver”).
On December 31, 2009, the Company fully repaid the senior unsecured term loan A facility (the “Term Loan
A”) prior to its maturity.
Subsequent to December 31, 2009, the Company made optional repayments of $405 million which represented
the outstanding principal balance on the Revolver as of December 31, 2009.
2008 Borrowings and Repayments
On March 10, 2008, the Company entered into arrangements with a group of lenders to provide an aggregate of
$4,400 million in senior financing. The arrangements consisted of the term loan A facility, a revolving credit facility
and a bridge loan facility.
On April 11, 2008, these arrangements were amended and restated. The amended and restated arrangements
consist of a $2,700 million senior unsecured credit agreement that provided the $2,200 million Term Loan A facility
and the $500 million Revolver (collectively, the “senior unsecured credit facility”) and a 364-day bridge credit
agreement that provided a $1,700 million bridge loan facility.
On May 7, 2008, in connection with the Company’s separation from Cadbury, $3,019 million was repaid to
Cadbury. Prior to separation from Cadbury, the Company had a variety of debt agreements with other wholly-owned
subsidiaries of Cadbury that were unrelated to DPS’ business.
79
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)