Wendy's 2008 Annual Report Download - page 130

(10) Long-Term Debt
Long-term debt consisted of the following:
2008 2007
Year-End
Senior secured term loan, weighted average effective interest of 5.73%
as of December 28, 2008 (a) ...................................... $ 385,030 $555,050
6.20% senior notes, due in 2014 (b) ................................. 199,111 —
6.25% senior notes, due in 2011 (b) ................................. 188,933 —
Sale-leaseback obligations due through 2028 (c) ....................... 123,829 105,897
Capitalized lease obligations due through 2036 (d) .................... 106,841 72,355
7% Debentures, due in 2025 (e)..................................... 78,974 —
6.54% Secured bank term loan, due in 2013 (f) ...................... 19,790 —
Notes payable, weighted average interest of 7.27% as of December 28,
2008 due through 2014 (g)....................................... 5,298 —
5% convertible notes due in 2023 (h)................................ 2,100 2,100
Other ............................................................. 1,671 3,931
1,111,577 739,333
Less amounts payable within one year ................................ (30,426) (27,802)
$1,081,151 $711,531
Aggregate annual maturities of long-term debt as of December 28, 2008 were as follows:
Fiscal Year Amount
2009 ................................................................ $ 30,426
2010 ................................................................ 16,854
2011 ................................................................ 394,724
2012 ................................................................ 195,813
2013 ................................................................ 26,534
Thereafter. . .......................................................... 447,226
$1,111,577
(a) As of December 28, 2008, the Company maintained a credit agreement (the “Arby’s Credit Agreement”)
for its Arby’s restaurants business segment which included a senior secured term Arby’s loan facility in the
original principal amount of $620,000 (the “Arby’s Term Loan”), of which $385,030 was outstanding as of
December 28, 2008, and a senior secured revolving credit facility of $100,000 which would have expired in
July 2011, under which there were no borrowings as of December 28, 2008. However, the availability
under the revolving credit facility as of December 28, 2008 was $92,201 which is net of a reduction of
$7,799 for outstanding letters of credit. During 2008, we made $143,213 of voluntary net principal
prepayments on the Arby’s Term Loan to assure compliance with certain covenants in the Arby’s Credit
Agreement. The Arby’s Term Loan also required prepayments of principal amounts resulting from certain
events and, on an annual basis, from excess cash flow of the Arby’s restaurant business as determined under
the Arby’s Credit Agreement (the “Excess Cash Flow Payment”). The Excess Cash Flow Payment for fiscal
2007 of $10,407 was paid in the second quarter of 2008. There will be no Excess Cash Flow Payment
necessary for fiscal 2008. Additionally in 2008, the Company reacquired Arby’s Term Loans with an
outstanding principal amount of $10,893 for approximately $7,237 (see Note 11). The Arby’s Term Loan
bore interest at the Company’s option at either (1) LIBOR plus 2.25% based on the current leverage ratio
or (2) the higher of a base rate determined by the administrative agent for the Credit Agreement or the
Federal funds rate plus 0.50%, in either case plus 1.25% based on the current leverage ratio.
(footnotes continued on next page)
122
Wendy’s/Arby’s Group, Inc. and Subsidiaries
(Formerly Triarc Companies, Inc.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(In Thousands Except Per Share Amounts)