Cisco 2015 Annual Report Download - page 71

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Borrowings
Senior Notes The following table summarizes the principal amount of our senior notes (in millions):
Maturity Date July 25, 2015 July 26, 2014
Senior notes:
Floating-rate notes:
Three-month LIBOR plus 0.05% ............................. September 3, 2015 $ 850 $ 850
Three-month LIBOR plus 0.28% ............................. March 3, 2017 1,000 1,000
Three-month LIBOR plus 0.31% ............................. June 15, 2018 (1) 900 —
Three-month LIBOR plus 0.50% ............................. March 1, 2019 500 500
Fixed-rate notes:
2.90% ....................................................... November 17, 2014 —500
5.50% ....................................................... February 22, 2016 3,000 3,000
1.10% ....................................................... March 3, 2017 2,400 2,400
3.15% ....................................................... March 14, 2017 750 750
1.65% ....................................................... June 15, 2018 (1) 1,600 —
4.95% ....................................................... February 15, 2019 2,000 2,000
2.125% ...................................................... March 1, 2019 1,750 1,750
4.45% ....................................................... January 15, 2020 2,500 2,500
2.45% ....................................................... June 15, 2020 (1) 1,500 —
2.90% ....................................................... March 4, 2021 500 500
3.00% ....................................................... June 15, 2022 (1) 500 —
3.625% ...................................................... March 4, 2024 1,000 1,000
3.50% ....................................................... June 15, 2025 (1) 500 —
5.90% ....................................................... February 15, 2039 2,000 2,000
5.50% ....................................................... January 15, 2040 2,000 2,000
Total .................................................... $ 25,250 $ 20,750
(1) In June 2015, we issued senior notes with an aggregate principal amount of $5.0 billion.
Interest is payable semiannually on each class of the senior fixed-rate notes, each of which is redeemable by us at any time,
subject to a make-whole premium. Interest is payable quarterly on the floating-rate notes. We were in compliance with all debt
covenants as of July 25, 2015.
We repaid the fixed-rate notes (2.90%) due on November 17, 2014, for an aggregate principal amount of $500 million upon
maturity.
We repaid the floating-rate notes due on September 3, 2015 for an aggregate principal amount of $850 million upon maturity.
Other Debt Other debt as of July 25, 2015 and July 26, 2014 includes secured borrowings associated with customer financing
arrangements. The amount of borrowings outstanding under these arrangements was $4 million and $12 million as of July 25,
2015 and July 26, 2014, respectively.
Commercial Paper In fiscal 2011, we established a short-term debt financing program of up to $3.0 billion through the issuance
of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes. We
had no commercial paper notes outstanding as of each of July 25, 2015 and July 26, 2014.
Credit Facility On May 15, 2015, we entered into a credit agreement with certain institutional lenders that provides for a
$3.0 billion unsecured revolving credit facility that is scheduled to expire on May 15, 2020. Any advances under the credit
agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds
rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor
rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one month plus 1.00%, or
(ii) the Eurocurrency Rate, plus a margin that is based on our senior debt credit ratings as published by Standard & Poor’s
Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than
zero. The credit agreement requires that we comply with certain covenants, including that it maintains an interest coverage ratio
as defined in the agreement.
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