Wendy's 2008 Annual Report Download - page 64

bear interest at the borrowers’ option at either (1) LIBOR of not less than 2.75% plus 4.0% or (2) the
higher of a base rate determined by the administrative agent for the Credit Agreement or the Federal funds
rate plus 0.5% (but not less than 3.75%), in either case plus 3.0%. The borrowers are also charged a
facility fee based on the unused portion of the total credit facility of 0.5% per annum.
(2) Unsecured debt assumed as part of the Wendy’s Merger and is due June 2014 and redeemable prior to
maturity at our option. The Wendy’s 6.20% senior notes were adjusted to fair value at the date of and in
connection with the Wendy’s Merger based on an outstanding principal of $224.6 million and an effective
interest rate of 7.0%.
(3) Unsecured debt assumed as part of the Wendy’s Merger and is due November 2011 and is redeemable
prior to maturity at our option. The Wendy’s 6.25% senior notes were adjusted to fair value at the date of
and in connection with the Wendy’s Merger based on an outstanding principal of $199.7 million and an
effective interest rate of 6.6%.
(4) The capitalized lease obligations, which extend through 2036, include $30.1 million of capital lease
obligations assumed as part of the Wendy’s Merger. The Wendy’s capital lease obligations were adjusted to
fair value at the date of and in connection with the Wendy’s Merger.
(5) Unsecured debt assumed as part of the Wendy’s Merger and is due in 2025. The Wendy’s 7% debentures
are unsecured and were adjusted to fair value at the date of and in connection with the Wendy’s Merger
based on an outstanding principal of $97.1 million and an effective interest rate of 8.6%.
(6) During 2008 we entered into a new $20.0 million financing facility for one of our existing Company
aircraft (the “Bank Term Loan”). The facility requires monthly payments, including interest, of
approximately $0.2 million through August 2013 with a final balloon payment of approximately $15.2
million due in September 2013.
(7) This obligation represents notes payable assumed as part of the California Restaurant Acquisition which are
due through 2014.
(8) We have $2.1 million of convertible notes outstanding as of December 28, 2008 which do not have any
scheduled principal repayments prior to 2023 and are convertible into 160,000 shares of our class A
common stock as adjusted due to the dividend of DFR common stock distributed to our stockholders in
April 2008. The convertible notes are redeemable at our option commencing May 20, 2010 and at the
option of the holders on May 15, 2010, 2015 and 2020 or upon the occurrence of a fundamental change, as
defined, relating to us, in each case at a price of 100% of the principal amount of the convertible notes
plus accrued interest.
Other Revolving Credit Facilities
On January 14, 2009, Wendy’s executed a new $200.0 million revolving credit facility (the “Wendy’s
Revolver”), borrowings under which were secured by substantially all of Wendy’s current assets, intangibles,
stock of Wendy’s subsidiaries and a portion of their real and personal property. The Wendy’s Revolver was
terminated effective March 11, 2009, in connection with the execution of the amended and restated Credit
Agreement described above.
AFA Service Corporation (“AFA”), an independently controlled advertising cooperative in which we have
voting interests of less than 50%, has a $3.5 million line of credit. The availability under the AFA line of
credit as of December 28, 2008 was $3.0 million.
WNAP is an advertising fund established to collect and administer funds for use in advertising and
promotional programs for Wendy’s company-owned and franchised stores. The fund has a fully available $25.0
million line of credit at December 28, 2008. Wendy’s is not the guarantor of the debt. The line of credit was
established to fund these advertising operations.
One of Wendy’s Canadian subsidiaries has a fully available revolving credit facility of Canadian $6.0
million as of December 28, 2008.
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