Union Pacific 2001 Annual Report Download - page 49

23
Amount of Commitment Expiration
Per Period
Other Commercial Commitments
Millions of Dollars
Total
Amounts
Committed
Less Than
1 Year 2-3 Years 4-5 Years
After
5 Years
Credit facilities (note 7)............................. $2,000 $1,000 $ - $1,000 $ -
Convertible preferred securities (note 7).. 1,500 - - - 1,500
Sale of receivables (note 4)........................ 600 600 - - -
Guarantees (note 12)[a] ............................. 270 7 32 10 221
Standby letters of credit (note 12) ............ 45 45 - - -
Total commercial commitments............... $4,415 $1,652 $32 $1,010 $1,721
[a] Includes guaranteed obligations of affiliated operations.
Financing Activities
Credit Facilities – On December 31, 2001, the Corporation had $2.0 billion in revolving credit facilities, of which $1.0
billion expires in March 2002, with the remaining $1.0 billion expiring in 2005. The facilities, which were entered into
during March 2001, and March of 2000, respectively, are designated for general corporate purposes and replaced a $2.8
billion facility, which expired in April 2001. None of the credit facilities were used as of December 31, 2001 or 2000.
Commitment fees and interest rates payable under the facilities are similar to fees and rates available to comparably rated
investment-grade corporate borrowers. The Corporation is reviewing rollover options for the credit facility that expires
in March 2002.
Shelf Registration Statement – In January 2001, under an existing shelf registration statement, the Corporation issued
$400 million of fixed-rate debt at 6.65% with a maturity date of January 15, 2011. During May 2001, the Corporation
issued the remaining $200 million of debt securities available under this shelf registration statement as fixed-rate debt
at 5.84% with a maturity date of May 25, 2004. Simultaneously, the Corporation entered into an interest rate swap
converting the debt, issued in May 2001, from a fixed rate to a variable rate. The proceeds from the issuance of this debt
were used for repayment of debt and other general corporate purposes.
In June 2001, the Corporation filed a new $1.0 billion shelf registration statement, which became effective June 14,
2001. Under this shelf registration statement, the Corporation may issue, from time to time, any combination of debt
securities, preferred stock, common stock or warrants for debt securities or preferred stock in one or more offerings. The
total offering price of these securities, in the aggregate, can not exceed $1.0 billion. On October 1, 2001, the Corporation
issued $300 million of fixed-rate debt at 5.75% with a maturity date of October 15, 2007. The proceeds from the issuance
of this debt were used for repayment of debt and other general corporate purposes. At December 31, 2001, the
Corporation had $700 million remaining for issuance under the shelf registration.
On January 17, 2002, the Corporation issued an additional $300 million of fixed-rate debt at 6.125% with a maturity
date of January 15, 2012. The proceeds from the issuance were also used for repayment of debt and other general
corporate purposes. At January 24, 2002, the Corporation had $400 million remaining for issuance under the shelf
registration. The Corporation has no immediate plans to issue equity securities under this shelf registration.
Other Significant Financings – During July 2001, UPRR entered into capital leases covering new locomotives. The related
capital lease obligations totaled approximately $124 million and are included in the Statements of Consolidated Financial
Position as debt (see note 7 to the Consolidated Financial Statements, Item 8).