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NOTE 12: SHORT-TERM BORROWINGS AND LINES OF
CREDIT This note provides details about our: • short-term borrowings; • lines of credit; and • other letters of credit and surety bonds. WEYERHAEUSER SHORT-TERM BORROWINGS Weyerhaeuser short-term borrowings outstanding at the end of our last two fiscal years were: • $54 million – including $50 million of commercial paper at a weighted average interest rate of 4.8 percent – as of December 30, 2007; and • $72 million – including $70 million of commercial paper at a weighted average interest rate of 5.5 percent – as of December 31, 2006. REAL ESTATE SHORT-TERM BORROWINGS Weyerhaeuser Company guarantees the commercial paper borrowing of its Weyerhaeuser Real Estate Company (WRECO) subsidiary. To keep the guarantee, WRECO: • agrees to maintain unused nonguaranteed credit arrangements equal to or greater than its outstanding commercial paper balance; and • pays Weyerhaeuser Company a fee equal to one-quarter of 1 percent of its outstanding commercial paper balance. WRECO had no short-term borrowings outstanding at the end of our last two fiscal years. Borrowings during the year resulted in WRECO paying Weyerhaeuser Company fees of less than a million dollars in 2007 and 2006. Available Lines of Credit at December 30, 2007  (Click to view entire chart) OUR LINES OF CREDIT As of December 30, 2007, we have two revolving credit facilities available to us. The status of our revolving credit facilities at the end of our fiscal year 2007 was: • $2.2 billion total committed bank revolving credit facilities; with • $1.8 billion available to us for incremental borrowings. We entered into our current two lines of credit in December 2006. These are: • a $1.2 billion revolving credit facility that expires in March 2010; and • a $1.0 billion five-year revolving credit facility that expires in December 2011. Conditions of both lines of credit include: • entire amount is available to Weyerhaeuser Company; • $400 million of the amount is available to WRECO; • Weyerhaeuser Company is not a guarantor of any borrowings by WRECO; and • WRECO is not a guarantor of Weyerhaeuser Company borrowings. Borrowings are at LIBOR plus a spread or at other interest rates mutually agreed upon between the borrower and the lending banks. As of December 30, 2007 there were no borrowings outstanding under the $1.2 billion revolving credit facility. The weighted average interest rate for our $1.0 billion revolving credit facility was 5.31 percent. As of December 31, 2006, our wholly owned Canadian subsidiary Weyerhaeuser Company Limited had an outstanding line of credit for $172 million ($200 million Canadian). Weyerhaeuser Company was a guarantor of any borrowings under this facility. Use of this line of credit included: • total amount was fully drawn as of the end of our fiscal year 2006; and • total amount was fully repaid and the facility was terminated in January 2007. OTHER LETTERS OF CREDIT AND SURETY BONDS Other letters of credit and surety bonds we have entered into as of the end of our last two fiscal years were: Weyerhaeuser  The decreases in Weyerhaeuser letters of credit and surety bonds from the end of our 2006 fiscal year to the end of our 2007 fiscal year primarily reflects the release of $500 million related to the Paragon litigation. More information about The Paragon Trade Brands, Inc. Litigation can be found in Note 16: Legal Proceedings, Commitments and Contingencies. Real Estate  Our compensating balance requirements for the other letters of credit and surety bonds were not significant. |