Lowe's 2014 Annual Report Download - page 60

NOTE 6: Short-Term Borrowings and Lines of Credit
On August 29, 2014, the Company entered into a new five year unsecured revolving credit agreement (the 2014 Credit Facility)
to replace the 2011 Second Amended and Restated Credit Agreement dated October 2011. The 2014 Credit Facility provides
for borrowings up to $1.75 billion and expires in August 2019. Subject to obtaining commitments from the lenders and
satisfying other conditions specified in the 2014 Credit Facility, we may increase the aggregate availability under the facility by
an additional $500 million. The 2014 Credit Facility supports our commercial paper program and has a $500 million letter of
credit sublimit. Letters of credit issued pursuant to the 2014 Credit Facility reduce the amount available for borrowing under
its terms. Borrowings made are unsecured and are priced at fixed rates based upon market conditions at the time of funding in
accordance with the terms of the 2014 Credit Facility. The 2014 Credit Facility contains certain restrictive covenants, which
include maintenance of an adjusted debt leverage ratio as defined by the credit agreement. The Company was in compliance
with those covenants as of January 30, 2015. Thirteen banking institutions are participating in the 2014 Credit Facility. As of
January 30, 2015, there were no outstanding borrowings or letters of credit under the 2014 Credit Facility and no outstanding
borrowings under the Company’s commercial paper program. As of January 31, 2014, there were $386 million outstanding
borrowings under the commercial paper program with a weighted average interest rate of 0.20% and no outstanding borrowings
or letters of credit under the senior credit facility.
NOTE 7: Long-Term Debt
Debt Category
(In millions)
Weighted-Average
Interest Rate at
Januar
y
30
,
2015 January 30, 2015 January 31, 2014
Secured debt:
Mortgage notes due through fiscal 20271 5.65 % $ 16 $ 17
Unsecured debt:
Notes due through fiscal 2019 3.35 % 2,721 2,271
Notes due fiscal 2020-2024 3.70 % 3,221 2,776
Notes due fiscal 2025-2029 6.76 % 813 813
Notes due fiscal 2030-2034
—
%
—
—
Notes due fiscal 2035-20392 6.06 % 1,536 1,535
Notes due fiscal 2040-2044 4.98 % 2,569 2,222
Capitalized lease obligations due through fiscal 2035 491 501
Total long-term debt 11,367 10,135
Less current maturities (552) (49)
Long-term debt, excluding current maturities $ 10,815 $ 10,086
1 Real properties with an aggregate book value of $53 million were pledged as collateral at January 30, 2015, for secured
debt.
2 Amount includes $100 million of notes issued in 1997 that may be put at the option of the holder on the 20th anniversary of
the issue at par value. None of these notes are currently puttable.
Debt maturities, exclusive of unamortized original issue discounts and capitalized lease obligations, for the next five years and
thereafter are as follows: 2015, $508 million; 2016, $1.0 billion; 2017, $751 million; 2018, $1 million; 2019, $450 million;
thereafter, $8.2 billion.
The Company’s unsecured notes are issued under indentures that have generally similar terms and, therefore, have been
grouped by maturity date for presentation purposes in the table above. The notes contain certain restrictive covenants, none of
which is expected to impact the Company’s capital resources or liquidity. The Company was in compliance with all covenants
of these agreements at January 30, 2015.
50
This proof is printed at 96% of original size
This line represents final trim and will not print