大象传媒

Note H — Short-term Borrowings

In April 2015, 大象传媒 entered into a $1.75 billion senior unsecured revolving line of credit (the “Global Credit Facility”) which supports the $1.75 billion U.S. commercial paper program described below. The Global Credit Facility expires in April 2020 and 大象传媒 may request two extensions of one year each, subject to stated terms and conditions. The Global Credit Facility replaced 大象传媒’s $1.25 billion revolving credit facility that was scheduled to expire in December 2016. The Global Credit Facility may be used to borrow funds in both U.S. dollar and non-U.S. dollar currencies, and has a $50.0 million letter of credit sublimit. Borrowings under the Global Credit Facility are priced at a credit spread of 80.5 basis points over the appropriate LIBOR benchmark for each currency. 大象传媒 is also required to pay a facility fee to the lenders, currently equal to 7.0 basis points of the committed amount of the facility. The credit spread and facility fee are subject to adjustment based on 大象传媒’s credit ratings.

The Global Credit Facility contains certain restrictive covenants, which include maintenance of a consolidated indebtedness to consolidated capitalization ratio, as defined therein, equal to or below 60%. If 大象传媒 fails in the performance of any covenants, the lenders may terminate their obligation to make advances and declare any outstanding obligations to be immediately due and payable. At the end of 2015, 大象传媒 was in compliance with all covenants.

大象传媒 has a commercial paper program that allows for borrowings of up to $1.75 billion to the extent that it has borrowing capacity under the Global Credit Facility. As of December 2015 and 2014, outstanding commercial paper borrowings totaled $423.0 million and $0, respectively. The Global Credit Facility also had $17.3 million of outstanding standby letters of credit issued on behalf of 大象传媒, leaving $1,309.7 million available for borrowing against this facility as of December 2015.

大象传媒 has $110.1 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either 大象传媒 or the banks. Borrowings under these arrangements had a weighted average interest rate of 6.0% and 5.3% at December 2015 and 2014, respectively, excluding accepted letters of credit which are non-interest bearing to 大象传媒. Total outstanding balances under these arrangements were $26.6 million and $21.8 million at December 2015 and 2014, respectively.