World Fuel Services 2011 Annual Report Download - page 91

6. Debt
We have an unsecured senior revolving credit facility (the ‘‘Credit Facility’’) which permits borrowings of
up to $800.0 million, with a sublimit of $300.0 million for the issuance of letters of credit and bankers’
acceptances. Under the Credit Facility we have the right to request increases in available borrowings up
to an additional $150.0 million, subject to the satisfaction of certain conditions. The Credit Facility expires
in July 2016. During 2011, we received a $250.0 million senior term loan facility (the ‘‘Term Loan
Facility’’) with principal payments as follows: $2.5 million in 2012, $7.5 million in 2013, $12.5 million in
2014, $17.5 million in 2015 and $210.0 million at maturity in July 2016.
Borrowings under our Credit Facility and Term Loan Facility related to base rate loans or eurodollar rate
loans bear floating interest rates plus applicable margins. As of December 31, 2011, the applicable
margins for base rate loans and eurodollar rate loans were 1.0% and 2.0%, respectively. We had no
outstanding borrowings under our Credit Facility at either December 31, 2011 or December 31, 2010.
Letters of credit issued under our Credit Facility are subject to letter of credit fees of 2.0% as of
December 31, 2011, and the unused portion of our Credit Facility is subject to commitment fees of
0.25% as of December 31, 2011. Our issued letters of credit under the Credit Facility totaled
$45.3 million and $72.0 million as of December 31, 2011 and December 31, 2010, respectively.
Our Credit Facility and our Term Loan Facility contain certain financial covenants with which we are
required to comply. Our failure to comply with the financial covenants contained in our Credit Facility and
our Term Loan Facility could result in an event of default. An event of default, if not cured or waived,
would permit acceleration of any outstanding indebtedness under the Credit Facility and our Term Loan
Facility, trigger cross-defaults under other agreements to which we are a party and impair our ability to
obtain working capital advances and letters of credit, which would have a material adverse effect on our
business, financial condition, results of operations and cash flows. As of December 31, 2011, we were in
compliance with all financial covenants contained in our Credit Facility and our Term Loan Facility.
Outside of our Credit Facility we have other unsecured credit lines aggregating $149.5 million for the
issuance of letters of credit, bank guarantees and bankers’ acceptances. These credit lines are
renewable on an annual basis and are subject to fees at market rates. As of December 31, 2011 and
2010, our outstanding letters of credit and bank guarantees under these credit lines totaled
$122.3 million and $44.0 million, respectively.
Substantially all of the letters of credit and bank guarantees issued under our Credit Facility and the
unsecured credit lines were provided to suppliers in the normal course of business and generally expire
within one year of issuance. Expired letters of credit and bank guarantees are renewed as needed.
Our debt consisted of the following (in thousands):
As of December 31,
2010
Term Loan Facility $250,000 $ —
Acquisition promissory notes 30,554 34,575
Loans payable to noncontrolling shareholders of a consolidated
subsidiary 2,795 3,146
Capital leases 3,377 2,994
Other 422 927
Total debt 287,148 41,642
Current maturities of long-term debt 17,800 17,076
Long-term debt $269,348 $24,566
The acquisition promissory notes are payable in varying amounts from April 2012 to December 2014 and
bear interest at annual rates ranging from 1.3% to 6.0% as of December 31, 2011. The loans payable to
noncontrolling shareholders of a consolidated subsidiary and capital leases are payable in varying
amounts from April 2012 to April 2015 and bear interest at annual rates ranging from 6.0% to 12.1% as
of December 31, 2011.
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2011