Chrysler 2007 Annual Report Download - page 175

174 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
The above-mentioned bonds issued by CNH Inc. contain, moreover, financial covenants common to the high yield American bond
market which place restrictions, among other things, on the possibility of the issuer and certain companies of the CNH group to
secure new debt, pay dividends or buy back treasury stock, realise certain investments, conclude transactions with associated
companies, give collateral on its assets, conclude sale and leaseback transactions, sell certain fixed assets or merge with other
companies, and financial covenants which impose a maximum limit on further indebtedness by the CNH group companies which
cannot exceed a specific ratio of cash flows to dividend payments and financial expenses.
The above commitments and covenants are subject to various exceptions and limitations and, in particular, some of them would no
longer be binding or would be less restrictive if the bonds were assigned an investment grade rating by Standard & Poor’s Rating
Services and/or Moody’s Investors Service.
The major bond issues outstanding at December 31, 2007 are the following:
Face value of Outstanding
outstanding bonds amount
Currency (in millions) Coupon Maturity (in millions of euros)
Global Medium Term Notes:
Fiat Finance and Trade Ltd S.A. (1) EUR 1,000 6.25% February 24, 2010 1,000
Fiat Finance and Trade Ltd S.A. (1) EUR 1,300 6.75% May 25, 2011 1,300
Fiat Finance and Trade Ltd S.A. (1) EUR 494 (2) (2) 494
Fiat Finance and Trade Ltd S.A. (4) EUR 1,000 5.625% November 15, 2011 1,000
Fiat Finance North America Inc. (4) EUR 1,000 5.625% June 12, 2017 1,000
Others (3) 199 199
Total Global Medium Term Notes 4,993
Other bonds:
Case New Holland Inc. USD 500 6.00% 01-giu-09 339
Fiat Finance and Trade Ltd S.A. (4) EUR 1,000 6.625% 15-feb-13 1,000
Case New Holland Inc. USD 500 7.125% 01-mar-14 339
CNH America LLC USD 254 7.25% 15-gen-16 173
Total Other bonds 1,851
Hedging effect and amortised cost valuation 222
Total Bonds 7,066
(1) Bonds listed on the Mercato Obbligazionario Telematico of the Italian Stock Exchange (EuroMot) and also on the Luxembourg Stock Exchange.
(2) “Fiat Step-Up Amortizing 2001-2011” bonds repayable at face value in five equal annual instalments each for 20% of the total issued (617 million euros) due beginning from the sixth year (November 7,
2007) by reducing the face value of each bond outstanding by one-fifth. The last instalment will be repaid on November 7, 2011. The bonds pay coupon interest equal to: 4.40% in the first year
(November 7, 2002), 4.60% in the second year (November 7, 2003), 4.80% in the third year (November 7, 2004), 5.00% in the fourth year (November 7, 2005), 5.20% in the fifth year (November 7, 2006),
5.40% in the sixth year (November 7, 2007), 5.90% in the seventh year (November 7, 2008), 6.40% in the eighth year (November 7, 2009), 6.90% in the ninth year (November 7, 2010), 7.40% in the tenth
year (November 7, 2011).
(3) Bonds with amounts outstanding equal to or less than the equivalent of 50 million euros.
(4) Bond listed on the Irish Stock Exchange.
The Group intends to repay the issued bonds in cash at due date by utilising available liquid resources. At December 31, 2007, the
Group also had unused committed credit lines expiring after 2008 of approximately 2 billion euros.
In addition, the companies in the Group may from time to time buy back bonds on the market that have been issued by the Group,
also for purposes of their cancellation. Such buy backs, if made, depend upon market conditions, the financial situation of the
Group and other factors which could affect such decisions.