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12. DEBT
Bunge had $300 million of borrowings outstanding at March 31, 2012 under its unsecured $1,000 million revolving credit facility, which matures on November 17, 2016. Borrowings under the credit facility bear interest at LIBOR plus an applicable margin ranging from 1.125% to 1.75%, based generally on the credit ratings of our senior long-term unsecured debt. Amounts under the credit agreement that remain undrawn are subject to a commitment fee payable quarterly on the average undrawn portion of the credit agreement at rates ranging from 0.125% to 0.275%, based generally on the credit ratings of our senior long-term unsecured debt.
In addition, Bunge had $950 million of borrowings outstanding at March 31, 2012 under its syndicated $1,750 million revolving credit agreement that matures on April 19, 2014. Borrowings under this credit agreement bear interest at LIBOR plus an applicable margin ranging from 1.30% to 2.75%, based generally on the credit ratings of our senior long-term unsecured debt. Amounts under the credit agreement that remain undrawn are subject to a commitment fee payable quarterly on the average undrawn portion of the credit agreement at 35% of the applicable margin.
In March 2012, Bunge acquired and consolidated an asset management company including certain investment funds for which Bunge has been deemed to be the primary beneficiary. This resulted in an increase in long-term debt attributable to these investment funds of $95 million.
The fair value of Bunge’s long-term debt is based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair value of long-term debt are as follows:
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March 31, 2012 |
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December 31, 2011 |
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Carrying |
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Fair Value |
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Carrying |
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Fair Value |
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(US$ in millions) |
|
Value |
|
(Level 2) |
|
Value |
|
(Level 2) |
|
|
Long-term debt, including current portion |
|
$ |
4,485 |
|
$ |
4,835 |
|
$ |
3,362 |
|
$ |
3,676 |
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