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These excerpts taken from the DVN 10-K filed Feb 27, 2009. Credit
Lines
Devon has two revolving lines of credit that can be accessed to
provide liquidity as needed. As of December 31, 2008,
Devon’s combined available capacity under these credit
facilities, net of $119 million of outstanding letters of
credit and $1.0 billion of outstanding commercial paper,
was $2.2 billion.
Devon has a $2.65 billion syndicated, unsecured revolving
line of credit (the “Senior Credit Facility”). The
maturity date for $2.15 billion of the Senior Credit
Facility is April 7, 2013. The maturity date for the
remaining $0.5 billion is April 7, 2012. All amounts
outstanding will be due and payable on the respective maturity
dates unless the maturity is extended. Prior to each April 7
anniversary date, Devon has the option to
Table of Contents
DEVON
ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)
extend the maturity of the Senior Credit Facility for one year,
subject to the approval of the lenders. The Senior Credit
Facility includes a revolving Canadian subfacility in a maximum
amount of U.S. $500 million.
Amounts borrowed under the Senior Credit Facility may, at the
election of Devon, bear interest at various fixed rate options
for periods of up to twelve months. Such rates are generally
less than the prime rate. However, Devon may elect to borrow at
the prime rate. The Senior Credit Facility currently provides
for an annual facility fee of $1.9 million that is payable
quarterly in arrears. As of December 31, 2008, there were
no borrowings under the Senior Credit Facility.
On November 5, 2008, Devon established a new
$700 million
364-day,
syndicated, unsecured revolving senior credit facility (the
“Short-Term Facility”). The Short-Term Facility
provides Devon with incremental liquidity for near-term capital
expenditures.
The Short-Term Facility matures on November 3, 2009. On the
maturity date, all amounts outstanding will be due and payable
at that time. Amounts borrowed under the Short-Term Facility
bear interest at various fixed rate options for periods of up to
12 months. Such rates are generally based on LIBOR or the
prime rate. The Short-Term Facility currently provides for an
annual facility fee of approximately $0.7 million that is
payable quarterly in arrears. As of December 31, 2008,
there were no borrowings under the Short-Term Facility.
The Senior Credit Facility and Short-Term Facility contain only
one material financial covenant. This covenant requires
Devon’s ratio of total funded debt to total capitalization
to be less than 65%. The credit agreement contains definitions
of total funded debt and total capitalization that include
adjustments to the respective amounts reported in the
consolidated financial statements. Also, total capitalization is
adjusted to add back noncash financial writedowns such as full
cost ceiling impairments or goodwill impairments. As of
December 31, 2008, Devon was in compliance with this
covenant. Devon’s
debt-to-capitalization
ratio at December 31, 2008, as calculated pursuant to the
terms of the agreement, was 18.6%.
Credit
Lines
Devon has two revolving lines of credit that can be accessed to
provide liquidity as needed. As of December 31, 2008,
Devon’s combined available capacity under these credit
facilities, net of $119 million of outstanding letters of
credit and $1.0 billion of outstanding commercial paper,
was $2.2 billion.
Devon has a $2.65 billion syndicated, unsecured revolving
line of credit (the “Senior Credit Facility”). The
maturity date for $2.15 billion of the Senior Credit
Facility is April 7, 2013. The maturity date for the
remaining $0.5 billion is April 7, 2012. All amounts
outstanding will be due and payable on the respective maturity
dates unless the maturity is extended. Prior to each April 7
anniversary date, Devon has the option to
Table of Contents
DEVON
ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)
extend the maturity of the Senior Credit Facility for one year,
subject to the approval of the lenders. The Senior Credit
Facility includes a revolving Canadian subfacility in a maximum
amount of U.S. $500 million.
Amounts borrowed under the Senior Credit Facility may, at the
election of Devon, bear interest at various fixed rate options
for periods of up to twelve months. Such rates are generally
less than the prime rate. However, Devon may elect to borrow at
the prime rate. The Senior Credit Facility currently provides
for an annual facility fee of $1.9 million that is payable
quarterly in arrears. As of December 31, 2008, there were
no borrowings under the Senior Credit Facility.
On November 5, 2008, Devon established a new
$700 million
364-day,
syndicated, unsecured revolving senior credit facility (the
“Short-Term Facility”). The Short-Term Facility
provides Devon with incremental liquidity for near-term capital
expenditures.
The Short-Term Facility matures on November 3, 2009. On the
maturity date, all amounts outstanding will be due and payable
at that time. Amounts borrowed under the Short-Term Facility
bear interest at various fixed rate options for periods of up to
12 months. Such rates are generally based on LIBOR or the
prime rate. The Short-Term Facility currently provides for an
annual facility fee of approximately $0.7 million that is
payable quarterly in arrears. As of December 31, 2008,
there were no borrowings under the Short-Term Facility.
The Senior Credit Facility and Short-Term Facility contain only
one material financial covenant. This covenant requires
Devon’s ratio of total funded debt to total capitalization
to be less than 65%. The credit agreement contains definitions
of total funded debt and total capitalization that include
adjustments to the respective amounts reported in the
consolidated financial statements. Also, total capitalization is
adjusted to add back noncash financial writedowns such as full
cost ceiling impairments or goodwill impairments. As of
December 31, 2008, Devon was in compliance with this
covenant. Devon’s
debt-to-capitalization
ratio at December 31, 2008, as calculated pursuant to the
terms of the agreement, was 18.6%.
Credit Lines Devon has two revolving lines of credit that can be accessed to provide liquidity as needed. As of December 31, 2008, Devon’s combined available capacity under these credit facilities, net of $119 million of outstanding letters of credit and $1.0 billion of outstanding commercial paper, was $2.2 billion. Devon has a $2.65 billion syndicated, unsecured revolving line of credit (the “Senior Credit Facility”). The maturity date for $2.15 billion of the Senior Credit Facility is April 7, 2013. The maturity date for the remaining $0.5 billion is April 7, 2012. All amounts outstanding will be due and payable on the respective maturity dates unless the maturity is extended. Prior to each April 7 anniversary date, Devon has the option to
Table of ContentsDEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) extend the maturity of the Senior Credit Facility for one year, subject to the approval of the lenders. The Senior Credit Facility includes a revolving Canadian subfacility in a maximum amount of U.S. $500 million. Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months. Such rates are generally less than the prime rate. However, Devon may elect to borrow at the prime rate. The Senior Credit Facility currently provides for an annual facility fee of $1.9 million that is payable quarterly in arrears. As of December 31, 2008, there were no borrowings under the Senior Credit Facility. On November 5, 2008, Devon established a new $700 million 364-day, syndicated, unsecured revolving senior credit facility (the “Short-Term Facility”). The Short-Term Facility provides Devon with incremental liquidity for near-term capital expenditures. The Short-Term Facility matures on November 3, 2009. On the maturity date, all amounts outstanding will be due and payable at that time. Amounts borrowed under the Short-Term Facility bear interest at various fixed rate options for periods of up to 12 months. Such rates are generally based on LIBOR or the prime rate. The Short-Term Facility currently provides for an annual facility fee of approximately $0.7 million that is payable quarterly in arrears. As of December 31, 2008, there were no borrowings under the Short-Term Facility. The Senior Credit Facility and Short-Term Facility contain only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization to be less than 65%. The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the consolidated financial statements. Also, total capitalization is adjusted to add back noncash financial writedowns such as full cost ceiling impairments or goodwill impairments. As of December 31, 2008, Devon was in compliance with this covenant. Devon’s debt-to-capitalization ratio at December 31, 2008, as calculated pursuant to the terms of the agreement, was 18.6%. Credit Lines Devon has two revolving lines of credit that can be accessed to provide liquidity as needed. As of December 31, 2008, Devon’s combined available capacity under these credit facilities, net of $119 million of outstanding letters of credit and $1.0 billion of outstanding commercial paper, was $2.2 billion. Devon has a $2.65 billion syndicated, unsecured revolving line of credit (the “Senior Credit Facility”). The maturity date for $2.15 billion of the Senior Credit Facility is April 7, 2013. The maturity date for the remaining $0.5 billion is April 7, 2012. All amounts outstanding will be due and payable on the respective maturity dates unless the maturity is extended. Prior to each April 7 anniversary date, Devon has the option to
Table of ContentsDEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) extend the maturity of the Senior Credit Facility for one year, subject to the approval of the lenders. The Senior Credit Facility includes a revolving Canadian subfacility in a maximum amount of U.S. $500 million. Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months. Such rates are generally less than the prime rate. However, Devon may elect to borrow at the prime rate. The Senior Credit Facility currently provides for an annual facility fee of $1.9 million that is payable quarterly in arrears. As of December 31, 2008, there were no borrowings under the Senior Credit Facility. On November 5, 2008, Devon established a new $700 million 364-day, syndicated, unsecured revolving senior credit facility (the “Short-Term Facility”). The Short-Term Facility provides Devon with incremental liquidity for near-term capital expenditures. The Short-Term Facility matures on November 3, 2009. On the maturity date, all amounts outstanding will be due and payable at that time. Amounts borrowed under the Short-Term Facility bear interest at various fixed rate options for periods of up to 12 months. Such rates are generally based on LIBOR or the prime rate. The Short-Term Facility currently provides for an annual facility fee of approximately $0.7 million that is payable quarterly in arrears. As of December 31, 2008, there were no borrowings under the Short-Term Facility. The Senior Credit Facility and Short-Term Facility contain only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization to be less than 65%. The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the consolidated financial statements. Also, total capitalization is adjusted to add back noncash financial writedowns such as full cost ceiling impairments or goodwill impairments. As of December 31, 2008, Devon was in compliance with this covenant. Devon’s debt-to-capitalization ratio at December 31, 2008, as calculated pursuant to the terms of the agreement, was 18.6%. These excerpts taken from the DVN 10-K filed Jun 9, 2008. Credit
Lines
Devon has two revolving lines of credit that can be accessed to
provide liquidity. As of December 31, 2007, Devon’s
combined available capacity under these credit facilities, net
of $198 million of outstanding letters of credit and
$1.0 billion of outstanding commercial paper, was
$1.3 billion.
Devon’s $2.5 billion five-year, syndicated, unsecured
revolving line of credit (the “Senior Credit
Facility”) matures on April 7, 2012, and all amounts
outstanding will be due and payable at that time unless the
maturity is extended. Prior to each April 7 anniversary date,
Devon has the option to extend the maturity of the Senior Credit
Facility for one year, subject to the approval of the lenders.
The Senior Credit Facility includes a five-year revolving
Canadian subfacility in a maximum amount of
U.S. $500 million. Amounts borrowed under the Senior
Credit Facility may, at the election of Devon, bear interest at
various fixed rate options for periods of up to twelve months.
Such rates are generally less than the prime rate. However,
Devon may elect to borrow at the prime rate. The Senior Credit
Facility currently provides for an annual facility fee of
$1.8 million that is payable quarterly in arrears. As of
December 31, 2007, there were $1.4 billion of
borrowings under the Senior Credit Facility at an average rate
of 5.27%.
On August 7, 2007, Devon established a new
$1.5 billion
364-day,
syndicated, unsecured revolving senior credit facility (the
“Short-Term Facility”). This facility provides Devon
with provisional interim liquidity until the proceeds from
divestitures of assets in Africa are received. The Short-Term
Facility was also used to support an increase in Devon’s
commercial paper program from $2 billion to
$3.5 billion.
The Short-Term Facility matures on August 5, 2008. At that
time, all amounts outstanding will be due and payable unless the
maturity is extended. Prior to August 5, 2008, Devon has
the option to convert any outstanding principal amount of loans
under the Short-Term Facility to a term loan that will be
repayable in a single payment on August 4, 2009.
Amounts borrowed under the Short-Term Facility bear interest at
various fixed rate options for periods of up to 12 months.
Such rates are generally less than the prime rate. Devon may
also elect to borrow at the prime rate. The Short-Term Facility
currently provides for an annual facility fee of approximately
$0.8 million that is payable quarterly in arrears. As of
December 31, 2007, there were no borrowings under the
Short-Term Facility.
The Senior Credit Facility and Short-Term Facility contain only
one material financial covenant. This covenant requires
Devon’s ratio of total funded debt to total capitalization
to be less than 65%. The credit agreement contains definitions
of total funded debt and total capitalization that include
adjustments to the respective amounts reported in the
consolidated financial statements. As defined in the agreement,
total funded debt excludes the debentures that are exchangeable
into shares of Chevron common stock. Also, total capitalization
is adjusted to add back noncash financial writedowns such as
full cost ceiling impairments or goodwill impairments. As of
December 31, 2007, Devon was in compliance with this
covenant. Devon’s debt-to-capitalization ratio at
December 31, 2007, as calculated pursuant to the terms of
the agreement, was 23.8%.
Credit Lines Devon has two revolving lines of credit that can be accessed to provide liquidity. As of December 31, 2007, Devon’s combined available capacity under these credit facilities, net of $198 million of outstanding letters of credit and $1.0 billion of outstanding commercial paper, was $1.3 billion. Devon’s $2.5 billion five-year, syndicated, unsecured revolving line of credit (the “Senior Credit Facility”) matures on April 7, 2012, and all amounts outstanding will be due and payable at that time unless the maturity is extended. Prior to each April 7 anniversary date, Devon has the option to extend the maturity of the Senior Credit Facility for one year, subject to the approval of the lenders. The Senior Credit Facility includes a five-year revolving Canadian subfacility in a maximum amount of U.S. $500 million. Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months. Such rates are generally less than the prime rate. However, Devon may elect to borrow at the prime rate. The Senior Credit Facility currently provides for an annual facility fee of $1.8 million that is payable quarterly in arrears. As of December 31, 2007, there were $1.4 billion of borrowings under the Senior Credit Facility at an average rate of 5.27%. On August 7, 2007, Devon established a new $1.5 billion 364-day, syndicated, unsecured revolving senior credit facility (the “Short-Term Facility”). This facility provides Devon with provisional interim liquidity until the proceeds from divestitures of assets in Africa are received. The Short-Term Facility was also used to support an increase in Devon’s commercial paper program from $2 billion to $3.5 billion. The Short-Term Facility matures on August 5, 2008. At that time, all amounts outstanding will be due and payable unless the maturity is extended. Prior to August 5, 2008, Devon has the option to convert any outstanding principal amount of loans under the Short-Term Facility to a term loan that will be repayable in a single payment on August 4, 2009. Amounts borrowed under the Short-Term Facility bear interest at various fixed rate options for periods of up to 12 months. Such rates are generally less than the prime rate. Devon may also elect to borrow at the prime rate. The Short-Term Facility currently provides for an annual facility fee of approximately $0.8 million that is payable quarterly in arrears. As of December 31, 2007, there were no borrowings under the Short-Term Facility. The Senior Credit Facility and Short-Term Facility contain only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization to be less than 65%. The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the consolidated financial statements. As defined in the agreement, total funded debt excludes the debentures that are exchangeable into shares of Chevron common stock. Also, total capitalization is adjusted to add back noncash financial writedowns such as full cost ceiling impairments or goodwill impairments. As of December 31, 2007, Devon was in compliance with this covenant. Devon’s debt-to-capitalization ratio at December 31, 2007, as calculated pursuant to the terms of the agreement, was 23.8%. These excerpts taken from the DVN 10-K filed Feb 28, 2008. Credit
Lines
Devon has two revolving lines of credit that can be accessed to
provide liquidity. As of December 31, 2007, Devon’s
combined available capacity under these credit facilities, net
of $198 million of outstanding letters of credit and
$1.0 billion of outstanding commercial paper, was
$1.3 billion.
Devon’s $2.5 billion five-year, syndicated, unsecured
revolving line of credit (the “Senior Credit
Facility”) matures on April 7, 2012, and all amounts
outstanding will be due and payable at that time unless the
maturity is extended. Prior to each April 7 anniversary date,
Devon has the option to extend the maturity of the Senior Credit
Facility for one year, subject to the approval of the lenders.
The Senior Credit Facility includes a five-year revolving
Canadian subfacility in a maximum amount of
U.S. $500 million. Amounts borrowed under the Senior
Credit Facility may, at the election of Devon, bear interest at
various fixed rate options for periods of up to twelve months.
Such rates are generally less than the prime rate. However,
Devon may elect to borrow at the prime rate. The Senior Credit
Facility currently provides for an annual facility fee of
$1.8 million that is payable quarterly in arrears. As of
December 31, 2007, there were $1.4 billion of
borrowings under the Senior Credit Facility at an average rate
of 5.27%.
On August 7, 2007, Devon established a new
$1.5 billion
364-day,
syndicated, unsecured revolving senior credit facility (the
“Short-Term Facility”). This facility provides Devon
with provisional interim liquidity until the proceeds from
divestitures of assets in Africa are received. The Short-Term
Facility was also used to support an increase in Devon’s
commercial paper program from $2 billion to
$3.5 billion.
The Short-Term Facility matures on August 5, 2008. At that
time, all amounts outstanding will be due and payable unless the
maturity is extended. Prior to August 5, 2008, Devon has
the option to convert any outstanding principal amount of loans
under the Short-Term Facility to a term loan that will be
repayable in a single payment on August 4, 2009.
Amounts borrowed under the Short-Term Facility bear interest at
various fixed rate options for periods of up to 12 months.
Such rates are generally less than the prime rate. Devon may
also elect to borrow at the prime rate. The Short-Term Facility
currently provides for an annual facility fee of approximately
$0.8 million that is payable quarterly in arrears. As of
December 31, 2007, there were no borrowings under the
Short-Term Facility.
The Senior Credit Facility and Short-Term Facility contain only
one material financial covenant. This covenant requires
Devon’s ratio of total funded debt to total capitalization
to be less than 65%. The credit agreement contains definitions
of total funded debt and total capitalization that include
adjustments to the respective amounts reported in the
consolidated financial statements. As defined in the agreement,
total funded debt excludes the debentures that are exchangeable
into shares of Chevron common stock. Also, total capitalization
is adjusted to add back noncash financial writedowns such as
full cost ceiling impairments or goodwill impairments. As of
December 31, 2007, Devon was in compliance with this
covenant. Devon’s debt-to-capitalization ratio at
December 31, 2007, as calculated pursuant to the terms of
the agreement, was 23.8%.
Credit Lines Devon has two revolving lines of credit that can be accessed to provide liquidity. As of December 31, 2007, Devon’s combined available capacity under these credit facilities, net of $198 million of outstanding letters of credit and $1.0 billion of outstanding commercial paper, was $1.3 billion. Devon’s $2.5 billion five-year, syndicated, unsecured revolving line of credit (the “Senior Credit Facility”) matures on April 7, 2012, and all amounts outstanding will be due and payable at that time unless the maturity is extended. Prior to each April 7 anniversary date, Devon has the option to extend the maturity of the Senior Credit Facility for one year, subject to the approval of the lenders. The Senior Credit Facility includes a five-year revolving Canadian subfacility in a maximum amount of U.S. $500 million. Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months. Such rates are generally less than the prime rate. However, Devon may elect to borrow at the prime rate. The Senior Credit Facility currently provides for an annual facility fee of $1.8 million that is payable quarterly in arrears. As of December 31, 2007, there were $1.4 billion of borrowings under the Senior Credit Facility at an average rate of 5.27%. On August 7, 2007, Devon established a new $1.5 billion 364-day, syndicated, unsecured revolving senior credit facility (the “Short-Term Facility”). This facility provides Devon with provisional interim liquidity until the proceeds from divestitures of assets in Africa are received. The Short-Term Facility was also used to support an increase in Devon’s commercial paper program from $2 billion to $3.5 billion. The Short-Term Facility matures on August 5, 2008. At that time, all amounts outstanding will be due and payable unless the maturity is extended. Prior to August 5, 2008, Devon has the option to convert any outstanding principal amount of loans under the Short-Term Facility to a term loan that will be repayable in a single payment on August 4, 2009. Amounts borrowed under the Short-Term Facility bear interest at various fixed rate options for periods of up to 12 months. Such rates are generally less than the prime rate. Devon may also elect to borrow at the prime rate. The Short-Term Facility currently provides for an annual facility fee of approximately $0.8 million that is payable quarterly in arrears. As of December 31, 2007, there were no borrowings under the Short-Term Facility. The Senior Credit Facility and Short-Term Facility contain only one material financial covenant. This covenant requires Devon’s ratio of total funded debt to total capitalization to be less than 65%. The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the consolidated financial statements. As defined in the agreement, total funded debt excludes the debentures that are exchangeable into shares of Chevron common stock. Also, total capitalization is adjusted to add back noncash financial writedowns such as full cost ceiling impairments or goodwill impairments. As of December 31, 2007, Devon was in compliance with this covenant. Devon’s debt-to-capitalization ratio at December 31, 2007, as calculated pursuant to the terms of the agreement, was 23.8%. This excerpt taken from the DVN 10-K filed Feb 28, 2007. Credit
Lines
Another source of liquidity is our $2.5 billion five-year,
syndicated, unsecured revolving line of credit (the “Senior
Credit Facility”). The Senior Credit Facility includes a
five-year revolving Canadian subfacility in a maximum amount of
U.S. $500 million. Amounts borrowed under the Senior
Credit Facility may, at our election, bear interest at various
fixed rate options for periods of up to twelve months. Such
rates are generally less than the prime rate. However, we may
elect to borrow at the prime rate. As of December 31, 2006,
there were no borrowings under the Senior Credit Facility. The
available capacity under the Senior Credit Facility as of
December 31, 2006, net of $1.8 billion of outstanding
commercial paper and $284 million of outstanding letters of
credit, was approximately $408 million.
The Senior Credit Facility matures on April 7, 2011, and
all amounts outstanding will be due and payable at that time
unless the maturity is extended. Prior to each April 7
anniversary date, we have the option to extend the maturity of
the Senior Credit Facility for one year, subject to the approval
of the lenders. We are working to obtain lender approval to
extend the current maturity date of April 7, 2011 to
April 7, 2012. If successful, this maturity date extension
will be effective April 7, 2007, provided we have not
experienced a “material adverse effect,” as defined in
the Senior Credit Facility agreement, at that date.
The Senior Credit Facility contains only one material financial
covenant. This covenant requires our ratio of total funded debt
to total capitalization to be less than 65%. The credit
agreement contains definitions of total funded debt and total
capitalization that include adjustments to the respective
amounts reported in our
Table of Contents
consolidated financial statements. As defined in the agreement,
total funded debt excludes the debentures that are exchangeable
into shares of Chevron Corporation common stock. Also, total
capitalization is adjusted to add back noncash financial
writedowns such as full cost ceiling impairments or goodwill
impairments. As of December 31, 2006, our debt to
capitalization ratio as calculated pursuant to this covenant was
27.3%.
Our access to funds from the Senior Credit Facility is not
restricted under any “material adverse effect”
clauses. It is not uncommon for credit agreements to include
such clauses. These clauses can remove the obligation of the
banks to fund the credit line if any condition or event would
reasonably be expected to have a material and adverse effect on
the borrower’s financial condition, operations, properties
or business considered as a whole, the borrower’s ability
to make timely debt payments, or the enforceability of material
terms of the credit agreement. While our Senior Credit Facility
includes covenants that require us to report a condition or
event having a material adverse effect, the obligation of the
banks to fund the Senior Credit Facility is not conditioned on
the absence of a material adverse effect.
We also have access to short-term credit under our commercial
paper program. Total borrowings under the commercial paper
program may not exceed $2 billion. Also, any borrowings
under the commercial paper program reduce available capacity
under the Senior Credit Facility on a
dollar-for-dollar
basis. Commercial paper debt generally has a maturity of between
seven and 90 days, although it can have a maturity of up to
365 days, and bears interest at rates agreed to at the time
of the borrowing. The interest rate is based on a standard index
such as the Federal Funds Rate, LIBOR, or the money market rate
as found on the commercial paper market. As of December 31,
2006, we had $1.8 billion of commercial paper debt
outstanding at an average rate of 5.37%.
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