Voya 2014 Annual Report Download - page 370

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
On July 17, 2012, as a result of the issuance of the 2022 Notes, the direct borrowing sublimit under the
Revolving Credit Agreement was reduced to $1.1 billion. On February 11, 2013, as a result of the issuance of the
2018 Notes, the revolving credit borrowings sublimit of the Revolving Credit Agreement was reduced by 50.0%
of the issuance to the minimum of $750.0.
The proceeds of the Term Loan Agreement were used to replace financing that was internally funded. Voya
Financial, Inc. paid interest at a variable rate based on its credit rating and was required to make principal
payments totaling 20.0% of the original borrowing amount over the first 12 months and 30.0% over the second
twelve months with all remaining amounts due by April 20, 2014.
During February 2013, Voya Financial, Inc. made payments totaling $850.0 on the Syndicated Bank Term Loan
from the proceeds of the 2018 Notes. On May 21, 2013, the Company used the proceeds of the 2053 Notes for
the repayment of the final outstanding borrowings of $392.5 under the Term Loan Agreement. This action,
together with the satisfaction of certain other requirements, caused the requirement to maintain liquidity of
$500.0 at all times to terminate.
Amended and Restated Credit Agreement
On February 14, 2014, the Company revised the terms of its Revolving Credit Agreement by entering into the
Amended and Restated Revolving Credit Agreement (the “Amended and Restated Credit Agreement”) with a
syndicate of banks. The Amended and Restated Credit Agreement modifies the original agreement by 1)
extending the term of the agreement to February 14, 2018; 2) reducing the total amount of LOCs that may be
issued from $3.5 billion to $3.0 billion and 3) reducing the current cost of LOC issuance fees. ING Bank, an
affiliate, acted as Joint Lead Arranger, Joint Book Manager and Documentation Agent and received $0.7 for its
services and participation in the syndicate.
As of December 31, 2014, there were no amounts outstanding as revolving credit borrowings. As of
December 31, 2014, $1.5 billion of LOCs were outstanding under the Revolving Credit Agreement. Of this total,
LOCs issued by ING Bank amount to $73.3.
17. Commitments and Contingencies
Leases
The Company leases its office space and certain equipment under operating leases, the longest term of which
expires in 2025.
For the years ended December 31, 2014, 2013 and 2012, rent expense for leases was $37.9, $40.5 and $41.7,
respectively. The future net minimum payments under non-cancelable leases for the years ended December 31,
2015 through 2019 are estimated to be $33.3, $32.0, $28.7, $18.3 and $14.8, respectively, and $61.1, thereafter,
totaling $188.2. The Company pays substantially all expenses associated with its leased and subleased office
properties.
Commitments
Through the normal course of investment operations, the Company commits to either purchase or sell securities,
mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The
inability of counterparties to honor these commitments may result in either a higher or lower replacement cost.
Also, there is likely to be a change in the value of the securities underlying the commitments.
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