LensCrafters 2003 Annual Report Download - page 20

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39
applicable Notes date of maturity. The Notes are guaranteed on a senior unsecured basis by Luxottica Group and
Luxottica S.r.l.. The Notes can be prepaid at U.S. Holdings option under certain circumstances. The proceeds from
the Notes were used for the repayment of outstanding debt and for other working capital needs.
In September 2003, the Company acquired 82.57 percent of the ordinary shares of OPSM and more than 90
percent of performance rights and options of OPSM for an aggregate of A$ 442.7 million (253.7 million). The
purchase price was paid for with the proceeds of a new credit facility with Banca Intesa S.p.A. of 200 million, in
addition to other short-term lines available. The new credit facility includes a 150 million term loan, which will require
equal semiannual installments of principal repayments of 30 million starting September 30, 2006, until the final
maturity date. Interest accrues on the term loan at Euribor (as defined in the agreement) plus 0.55 percent (2.692
percent on December 31, 2003). The revolving loan provides borrowing availability of up to 50 million; amounts
borrowed under the revolving portion can be borrowed and repaid until final maturity. Interest accrues on the revolving
loan at Euribor (as defined in the agreement) plus 0.55 percent (2.683 percent on December 31, 2003). The final
maturity of the credit facility is September 30, 2008. Luxottica Group can select interest periods of one, two or three
months. The credit facility contains certain financial and operating covenants. Under this credit facility, 200 million
was outstanding as of December 31, 2003.
38
in March 2003. The revolving loan portion of the credit facility allows for maximum borrowings of US$ 150 million.
Interest accrues under the credit facility at Libor (as defined in the agreement) plus 0.5 percent (1.641 percent on
December 31, 2003) and the credit facility allows U.S. Holdings to select interest periods of one, two, or three
months. The credit facility contains certain financial and operating covenants. Under this credit facility, US$ 145 million
was outstanding as of December 31, 2003.
In June 1999, Luxottica Group acquired the Ray-Ban business from Bausch & Lomb Incorporated for a purchase
price of US$ 655 million (635 million), subject to post-closing adjustments. The purchase price was paid with the
proceeds of a US$ 650 million (630 million) credit facility with UniCredito Italiano S.p.A. In June 2000, Luxottica
Group refinanced this short-term credit facility with a new credit facility with several financial institutions under which
the total maximum borrowings was 500 million. All amounts outstanding under this credit facility were repaid, and
the credit facility was terminated in June 2003.
In December 2000, Luxottica Group entered into a credit facility providing for maximum borrowing of 256 million
from San Paolo IMI S.p.A. Bank. This credit facility matured in June 2002, and the amount outstanding at that time
was repaid in full.
In March 2001, Luxottica Group entered into a credit facility with Banca Intesa S.p.A. to finance the acquisition of
Sunglass Hut International. The credit facility was unsecured and scheduled to expire in September 2002. In
September 2002, Luxottica Group agreed with Banca Intesa S.p.A. to extend the credit facility until December 2002,
on the same terms and conditions. On December 27, 2002, the amount outstanding at that time of 500 million was
repaid in full.
In December 2002, Luxottica Group entered into a new unsecured credit facility with Banca Intesa S.p.A. The new
unsecured credit facility provides borrowing availability of up to 650 million. The facility includes a 500 million term
loan, which will require a balloon payment of 200 million in June 2004 and equal quarterly installments of principal
repayments of 50 million subsequent to that date. Interest accrues on the term loan at Euribor (as defined in the
agreement) plus 0.45 percent (2.592 percent on December 31, 2003). The revolving loan provides borrowing
availability of up to 150 million; amounts borrowed under the revolving portion can be borrowed and repaid until
final maturity. Interest accrues on the revolving loan at Euribor (as defined in the agreement) plus 0.45 percent (2.594
percent on December 31, 2003). The final maturity of the credit facility is December 31, 2005. Luxottica Group can
select interest periods of one, two, three or six months. The credit facility contains certain financial and operating
covenants. Under this credit facility, 650 million was outstanding as of December 31, 2003.
On September 3, 2003, U.S. Holdings closed a private placement of US$ 300 million of senior unsecured
guaranteed notes (the “Notes”), issued in three series (Series A, Series B and Series C). Interest on the Series A Notes
accrues at 3.94 percent per annum and interest on Series B and Series C Notes accrues at 4.45 percent per annum.
The Series A and Series B Notes mature on September 3, 2008, and the Series C Notes mature on September 3,
2010. The Series A and Series C Notes require annual prepayments beginning on September 3, 2006, through the