World Fuel Services 2013 Annual Report Download - page 69

6. Debt
We have a senior revolving credit facility (‘‘Credit Facility’’) which permits borrowings of up to $1.1 billion with a sublimit of
$400.0 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
matures in October 2018. We also had $242.5 million and $247.5 million in senior term loans (‘‘Term Loans’’) outstanding as of
December 31, 2013 and 2012, respectively.
Borrowings under our Credit Facility and Term Loans related to base rate loans or eurodollar rate loans bear floating interest rates plus
applicable margins. As of December 31, 2013, the applicable margins for base rate loans and eurodollar rate loans were 1.0% and
2.0%, respectively. We had outstanding borrowings under our Credit Facility totaling $200.0 million and $100.5 million as of
December 31, 2013 and 2012, respectively. Letters of credit issued under our Credit Facility are subject to letter of credit fees of
2.25% as of December 31, 2013, and the unused portion of our Credit Facility is subject to commitment fees of 0.25% as of
December 31, 2013. Our issued letters of credit under the Credit Facility totaled $7.4 million and $47.4 million as of December 31,
2013 and 2012, respectively.
Our Credit Facility and our Term Loans 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 Loans 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 Loans, 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, 2013, we were in compliance with all financial covenants contained in our Credit Facility and our Term Loans.
Outside of our Credit Facility we have other uncommitted credit lines primarily 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, 2013 and 2012, our outstanding letters of credit and bank guarantees under these credit lines totaled $150.6 million and
$184.2 million, respectively.
Substantially all of the letters of credit and bank guarantees issued under our Credit Facility and the uncommitted 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,
2013 2012
Credit Facility $200,000 $100,500
Term Loans 242,500 247,500
Acquisition promissory notes 13,403 25,878
Other 7,808 6,440
Total debt 463,711 380,318
Current maturities of long-term debt 14,647 26,065
Long-term debt $449,064 $354,253
The acquisition promissory notes are payable in varying amounts from January 2014 to August 2016 and bear interest at annual rates
ranging from 1.2% to 6.0% as of December 31, 2013. The other debt primarily relates to capital leases and loans payable to
noncontrolling shareholders of a consolidated subsidiary which are payable in varying amounts through May 2018 and bear interest at
annual rates ranging from 2.0% to 6.3% as of December 31, 2013. The weighted average interest rate on our short-term debt was
2.1% and 2.4% as of December 31, 2013 and 2012, respectively.
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