Snapple 2010 Annual Report Download - page 59

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Senior Unsecured Notes
The indentures governing the senior unsecured notes, among other things, limit our ability to incur indebtedness secured
by principal properties, to enter into certain sale and lease back transactions and to enter into certain mergers or transfers of
substantially all of DPS’ assets. The senior unsecured notes are guaranteed by substantially all of our existing and future direct
and indirect domestic subsidiaries. As of December 31, 2010 and 2009, we were in compliance with all covenant requirements.
The 2011 and 2012 Notes
In December 2009, we completed the issuance of $850 million aggregate principal amount of senior unsecured notes
consisting of the 2011 and 2012 Notes. The weighted average interest rate of the 2011 and 2012 Notes was 2.04% for the year
ended December 31, 2010. The net proceeds from the sale of the debentures were used for repayment of existing indebtedness
under the Term Loan A. Interest on the 2011 and 2012 Notes is payable semi-annually on June 21 and December 21.
The 2013, 2018 and 2038 Notes
In April 2008, we completed the issuance of $1,700 million aggregate principal amount of senior unsecured notes
consisting of the 2013, 2018 and 2038 Notes. The weighted average interest rate of the 2013, 2018 and 2038 Notes was 6.81%
for the years ended December 31, 2010 and 2009. The net proceeds from the sale of the debentures were used to settle with
Cadbury related party debt and other balances, eliminate Cadbury’s net investment in us, purchase certain assets from Cadbury
related to our business and pay fees and expenses related to our credit facilities. Interest on the senior unsecured notes is
payable semi-annually on May 1 and November 1 and is subject to adjustment.
In December 2010, we completed a tender offer on a portion of the 2018 Notes and retired, at a premium, an aggregate
principal amount of approximately $476 million. The loss on early extinguishment of the 2018 Notes was $100 million. The
aggregate principal amount of the outstanding 2018 Notes was $724 million as of December 31, 2010.
The 2016 Notes
In January 2011, we completed the issuance of $500 million aggregate principal amount of the 2016 Notes. The net
proceeds from the sale of debentures were used to replace a portion of the cash used to purchase the 2018 Notes tendered
pursuant to the tender offer, with such proceeds also to be available for general corporate purposes.
Senior Unsecured Credit Facility
Our senior unsecured credit agreement (the "senior unsecured credit facility") provided senior unsecured financing
consisting of the Term Loan A with an aggregate principal amount of $2,200 million and a term of five years, which was fully
repaid in December 2009 prior to its maturity and terminated. In addition, our senior unsecured credit facility provides for the
Revolver in an aggregate principal amount of $500 million with a maturity in 2013. Up to $75 million of the Revolver is
available for the issuance of letters of credit.
Borrowings under the senior unsecured credit facility bear interest at a floating rate per annum based upon the London
interbank offered rate for dollars (“LIBOR”) or the alternate base rate (“ABR”), in each case plus an applicable margin which
varies based upon our debt ratings, from 1.00% to 2.50%, in the case of LIBOR loans and 0.00% to 1.50% in the case of ABR
loans. The alternate base rate means the greater of (a) JPMorgan Chase Bank’s prime rate and (b) the federal funds effective
rate plus 0.50%. Interest is payable on the last day of the interest period, but not less than quarterly, in the case of any LIBOR
loan and on the last day of March, June, September and December of each year in the case of any ABR loan. The average
interest rate for borrowings during the years ended December 31, 2010 and 2009 was 2.25% and 4.90%, respectively.
An unused commitment fee is payable quarterly to the lenders on the unused portion of the commitments in respect of the
Revolver equal to 0.15% to 0.50% per annum, depending upon our debt ratings.
Principal amounts outstanding under the Revolver are due and payable in full at maturity.
All obligations under the senior unsecured credit facility are guaranteed by substantially all of our existing and future
direct and indirect domestic subsidiaries.
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