Visa 2009 Annual Report Download - page 94

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Table of Contents
VISA INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
September 30, 2009
(in millions, except as noted)
8.28% Secured Notes-Series B
In September 1994, a real estate partnership owned jointly by Visa U.S.A. and Visa International issued notes that are secured by certain office
properties and facilities in California which are used by the Company ("1994 Lease Agreement"). Series B of these notes, totaling $26 million, were issued
with an interest rate of 8.28% and a stated maturity of September 23, 2014, and are payable monthly with interest-only payments for the first ten years and
payments of interest and principal for the remainder of the term. In May 2008, Visa Inc., Visa U.S.A. and Visa International executed an Amendment and
Waiver to the 1994 Lease Agreement ("Amended 1994 Lease Agreement") under which remaining obligations are guaranteed by Visa Inc. The Amended
1994 Lease Agreement stipulates that the interest rate will be adjusted upward if the long-term senior unsecured debt rating of Visa Inc. falls below certain
stipulated levels.
7.83% Secured Notes—Series B
In September 1995, a real estate partnership owned jointly by Visa U.S.A. and Visa International issued notes that are secured by certain office
properties and facilities in California which are used by the Company ("1995 Lease Agreement"). Series B of these notes, totaling $27 million, was issued
with an interest rate of 7.83% and a stated maturity of September 15, 2015, and is payable monthly with interest-only payments for the first ten years and
payments of interest and principal for the remainder of the term. In May 2008, Visa Inc., Visa U.S.A. and Visa International executed an Amendment and
Waiver to the 1995 Lease Agreement ("Amended 1995 Lease Agreement"), that guarantees remaining obligations under the agreement by Visa Inc.
Future Principal Payments
Future principal payments on the Company's outstanding debt are as follows:
Fiscal 2010 2011 2012 2013 2014 Thereafter Total
(in millions) $ 12 12 13 8 7 5 $ 57
U.S. Commercial Paper Program
Visa International maintains a U.S. commercial paper program to support its working capital requirements and for general corporate purposes. This
program allows the Company to issue up to $500 million of unsecured debt securities, with maturities up to 270 days from the date of issuance and at interest
rates generally extended to companies with comparable credit ratings. At September 30, 2009, the Company had no outstanding obligations under this
program.
Revolving Credit Facilities
In 2008, Visa Inc. entered into a $3.0 billion five-year revolving credit facility (the "February 2008 Agreement"). The February 2008 Agreement
matures on February 15, 2013 and contains covenants and events of defaults customary for facilities of this type. The participating lenders in this revolving
credit facility include affiliates of certain holders of the Company's class B and class C common stock, and certain of the Company's customers or affiliates of
its customers. This revolving credit facility is maintained to provide liquidity in the event of settlement failures by its customers, to back up the commercial
paper program and for general corporate purposes.
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