Safeway 2013 Annual Report Download - page 64

Table of Contents
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Notes and debentures were composed of the following at year end (in millions):
 2012
Commercial paper   $ —
Bank credit agreement, unsecured —
Term credit agreement, unsecured  700.0
Other bank borrowings, unsecured 2.8
Mortgage notes payable, secured  48.3
Floating Rate Senior Notes due 2013, unsecured 250.0
3.00% Second Series Notes due 2014, unsecured 1302.2
6.25% Senior Notes due 2014, unsecured 500.0
5.625% Senior Notes due 2014, unsecured  250.0
3.40% Senior Notes due 2016, unsecured  400.0
6.35% Senior Notes due 2017, unsecured  500.0
5.00% Senior Notes due 2019, unsecured  500.0
3.95% Senior Notes due 2020, unsecured  500.0
4.75% Senior Notes due 2021, unsecured  400.0
7.45% Senior Debentures due 2027, unsecured  150.0
7.25% Senior Debentures due 2031, unsecured  600.0
Other notes payable, unsecured  22.6
 5,125.9
Less current maturities (294.0)
Long-term portion  $4,831.9
(1) See the caption "Satisfaction and Discharge of Indenture" later in this note.
Commercial Paper The amount of commercial paper borrowings is limited to the unused borrowing capacity under the bank credit
agreement, described in the following paragraph. Safeway classifies commercial paper as long term because the Company intends to and
has the ability to refinance these borrowings on a long-term basis through either continued commercial paper borrowings or utilization of the
bank credit agreement, which matures in 2015. During 2013, the average commercial paper borrowing was $43.9 million and had a
weighted-average interest rate of 0.68%. During 2012, the average commercial paper borrowing was $681.7 million which had a weighted-
average interest rate of 0.86%.
Bank Credit Agreement The Company has a $1,500.0 million credit agreement with a syndicate of banks which has a termination date of
June 1, 2015 and provides for two additional one-year extensions of the termination date. The credit agreement provides (i) to Safeway a
$1,250.0 million revolving credit facility (the “Domestic Facility”), (ii) to Safeway and CSL a Canadian facility of up to $250.0 million for
U.S. Dollar and Canadian Dollar advances and (iii) to Safeway a $400.0 million sub-facility of the Domestic Facility for issuance of standby
and commercial letters of credit. The credit agreement also provides for an increase in the credit facility commitments up to an additional
$500.0 million, at the option of the lenders and subject to the satisfaction of certain conditions. The restrictive covenants of the credit
agreement limit Safeway with respect to, among other things, creating liens upon its assets and disposing of material amounts of assets
other than in the ordinary course of business. Additionally, the Company is required to maintain a minimum Adjusted EBITDA, as defined
in the credit agreement, to interest expense ratio of 2.0 to 1 and is required
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