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Debt Issuance
9 Months Ended
Sep. 30, 2013
Debt Issuance  
Debt Issuance

9.                                      Debt Issuance

 

On September 20, 2012, the Company issued 1.80 percent Senior Notes due September 25, 2017 in an aggregate principal amount of $300 million (the “Notes”).  The Notes rank equally with the Company’s other senior unsecured debt.  Interest on the Notes is paid semi-annually on March 25th and September 25th.  The Notes are subject to optional prepayment by the Company at 100 percent of the principal amount plus interest up to the prepayment date and, in certain circumstances, a make-whole amount.  The net proceeds from the sale of the Notes of approximately $297 million were used to repay $205 million of borrowings under the Company’s previously existing $1 billion revolving credit facility and for general corporate purposes.  The Company paid debt issuance costs of approximately $2 million relating to the Notes, which are being amortized to financing costs over the life of the Notes.