2Q 2020 Investor Presentation
Proactive Capital and Liquidity Management
Bond portfolio WAC1
Balanced maturity schedule 5,6
$ in millions
$500 million 40 year maturity
bond issued at 2.55% on
August 4th, 2020
4.7%
4.3%
4.3%
3.9%
3.5%
3.3%
4.2%
3.9%
4.0%
3.4%
250
3.4%
3.4%
330
700
562
500
500
2.1%
400
2.2%
842
600
500
400
300
250
170
2014
2015
WAC With Hedges
2016
2017
2018
2019
2020
WAC Excluding Hedges
2022 2023 2024 2025 2026 2027 2028 2029 2030
■USD Fixed ■Commercial Paper EUR Fixed
Annualized Dividend Per Share
2044 2048 2050
EUR Floating
2060
» Strong liquidity with $2.2B in cash and short-term investments,
and a $1.0B revolving credit facility²
1.6x net debt to adjusted operating income³
» Leverage well below maximum 4.5x net debt/EBITDA covenant4
$2.24
$2.00
$1.76
$1.48
$1.52
$1.36
2.
1. WAC = Weighted Average Coupon. As of year-end. 2020 data as of June 30, 2020.
As of June 30, 2020.
2015
2016
2017
2018
2019
2020F2
5.
6. Pro forma $500M 40 year maturity bond issued at 2.55% on August 4, 2020 and the prepayment of $500M of senior notes maturing in of December 2021.
MOODY'S
3. Trailing twelve months adjusted operating income. Amounts are adjusted measures, see Appendix for reconciliations from adjusted financial measures to U.S. GAAP and gross debt to net debt.
4. Total Debt (gross debt less $100M of cash and equivalents) to EBITDA ratio threshold is normally 4.0x, but elevated to 4.5x for three quarters after an acquisition >$500 million.
Certain USD denominated debt has been synthetically converted to EUR via cross-currency swaps. EUR converted to USD as of June 30, 2020.
2Q 2020 Investor Presentation - August 11, 2020
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