Hyundai 2006 Annual Report Download - page 123

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119
HYUNDAI MOTOR COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
(11) Hyundai Capital Co., Ltd., one of domestic subsidiaries of the Company, made a credit facility agreement on a US$ 600 million
renewable one-year revolving credit facility up to 3 years to be provided by General Electric Capital Corporation (the “GECC”) to Hyundai
Capital Co., Ltd. on January 13, 2006. Under the terms of such agreement, Hyundai Capital Co., Ltd. shall pay commitment fee of
Libor+90bp for the usage of facility and 20bp for the remaining. Also, the maturity of individual draw-down is within 1 year from the time
of withdrawal and in case of termination, the maturity for previous withdrawals can be extended to 1 year from the time of termination.
In addition, Hyundai Capital Co., Ltd, GECC and the Company made a support agreement on credit facility agreement on the same date
of the credit facility agreement. According to the support agreement, when Hyundai Capital Co., Ltd cannot redeem in a year after the
withdrawal, GECC has the right of debt-to-equity swap for the relevant draw-down and has the put option that GECC can sell converted
stocks to the Company within the ownership of the Company. In this case, the amount which the Company pays to GECC is the amount
of withdrawal for debt-to-equity swap multiplied by the ownership of the Company. Also, the Company has the call option that it can
buy converted stocks from GECC on the same condition of put option when the GECC does not exercise the put option. According to the
support agreement, Hyundai Capital Co., Ltd is supposed to pay 15bp commission to the Company based on the amount on which the
credit facility agreement was established multiplied by the ownership percentage of the company.
(12) On May 12, 2006, Hyundai Capital Co., Ltd., one of domestic subsidiaries of the Company, made an agreement on the Global Medium
Term Note Programme (the “Programme”). The notes issued under the Programme is listed on Singapore Exchange Securities
Trading Limited (the “SGX-ST”) and then traded on the SGX-ST. The maximum aggregate nominal amount of notes outstanding will not
exceed USD 2 billion and the notes may be issued at any time up to the limit.
(13) Hyundai Capital Co., Ltd made a Revolving Credit Facility Agreement with following financial institutions for Credit Line.
(14) Hyundai Card Co., Ltd., one of domestic subsidiaries of the Company, made an agreement regarding asset backed securitization.
According to the agreement, in order for the credibility of the asset-backed securities, several required provisions are made as a trigger
clauses to be used for early redemption calls, thereby limiting the risk that investors will have resulting from a change in quality of the
assets in the future. In the event the asset-backed securitization of the Hyundai Card Co., Ltd. is in violation of the applicable trigger
clause, Hyundai Card Co., Ltd. is obliged to make early redemption for asset-backed securities.
(15) WIA Corp., one of domestic subsidiaries of the Company, made a general instalment financing contract with Yonhap Capital Corp. in
order to promote the sales of its machine tools. According to the contract, if a user of the instalment financing service is in default, WIA
Corp. has to accept responsibility for the default receivable. The amount of principal that has not matured is 98,321 million
(US$105,767 thousand) and ceiling amount is 150,000 million (US$161,360 thousand) as of December 31, 2006.
Financial institution Credit Line Commission Contract term
ING Bank N.V., US$ 100,000,000 - committed : Libor+45bp 2006.11.25 ~ 2007.11.25
Seoul Branch - uncommitted : 8bp
Mizuho Corporate Bank, US$ 100,000,000 - committed : Libor+75bp 2006. 4.12 ~ 2007. 4.12
Seoul Branch - uncommitted : 10bp
JP Morgan Seoul Branch US$ 50,000,000 - committed : Libor+45bp 2006. 8. 4 ~ 2007. 8. 4
- uncommitted : 8bp
ABN Amro, Seoul Branch US$ 50,000,000 - committed : Libor+45bp 2006. 9.11 ~ 2007. 9.11
- uncommitted : 8bp
Citibank, Seoul KRW 47,000million - committed : 91day CD+0.6% 2006. 9.15 ~ 2007. 9.15
- uncommitted : 8bp
MUFJ, Seoul Branch JPY 5,000,000,000 - committed : Libor+48bp 2006.11.15 ~ 2007.11.15
- uncommitted : 8bp