Mercedes 2006 Annual Report Download - page 77

A part of this US $18 billion credit facility serves as collateral
for borrowings within the commercial-paper program.
To support an asset-backed commercial-paper program in North
America, a group of financial institutions has provided additional
credit facilities, which were increased to a volume of US $6.3
billion in 2006
(2005: US $6.2) billion. These liquidity facilities can
only be utilized
by the trusts to which DaimlerChrysler sells
receivables under this program.
The liquid reserves, short-term and long-term credit lines and
the possibility to generate cash inflows by securitizing receiv-
ables give the Group sufficient financial flexibility of more than
€50 billion to cover its refinancing needs at any time.
In 2006, DaimlerChrysler successfully issued benchmark notes
denominated in US dollars and euros. There were also smaller
issues of medium-term note programs in the form of private place -
ments. In addition, we utilized the securitization of receivables,
mainly receivables from the Financial Services business. Receiv-
ables were primarily securitized in the United States, but also
in Canada and Germany. In 2006, DaimlerChrysler sold retail
receivables in an amount of €15,860 million (2005: €11,575
million). Within the framework of a revolving credit facility for secu-
ritizing wholesale receivables, DaimlerChrysler also sold whole-
sale receivables in an amount of €32,373 million (2005: €33,922
million) to trusts and received proceeds of €32,373 million
(2005: €33,892 million). With these transactions, the Group receiv-
ed income of €264 million in 2006 and €182 million in 2005.
See Note 33 of the Notes to the Consolidated Financial State-
ments for further information on the sale of receivables.
At the end of 2006, DaimlerChrysler had short-term and long-
term credit lines totaling €34.7 billion, of which €18.2 billion
was not utilized. These credit lines include a US $18 billion credit
facility with a syndicate of international banks. This credit facil-
ity comprises three tranches: The first tranche is a 5-year credit
line maturing in May 2008, allowing DaimlerChrysler AG and
various subsidiaries to draw a total of US $7 billion under this
facility. DaimlerChrysler North America Holding can draw a
total of US $6 billion under a 364-day facility maturing in May
2007. The third tranche is a 5-year credit line of DaimlerChrysler
AG with a volume of US $5 billion. This credit line had an orig-
inal maturity until December 2009. In December 2005 and 2006,
we made use of our contractual option to extend this facility
for another year, so that the credit line now matures in December
2011. For the period from December 2009 until December 2011,
the volume of the third tranche is US $4.9 billion.
Management Report | Liquidity and Capital Resources | 61