TomTom 2008 Annual Report Download - page 71

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/ 69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
23. BORROWINGS
Borrowings (€ in thousands) 2008 2007
Non-current 1,241,900 0
Current1146,588 0
Total borrowings 1,388,488 0
1 €158,5m (10%) of the loan amount will be repaid in December 2009. The full amount payable on the loan is reduced by the netting off of the
loan negotiation costs which are built back up over the period of the loan through an interest charge.
The Group negotiated a syndicated loan facility consisting of a €1,585 million term loan and a €175 million
revolving credit facility to fund the Tele Atlas acquisition. Transaction costs related to the facility amounted to
€44.7 million. The facility terminates on 31 December 2012 and has an annual repayment schedule. The interest
is in line with market conditions and based on Euribor with a spread that depends on certain leverage covenants.
The Group’s borrowings are subject to covenant clauses whereby the Group is required to meet certain
performance indicators with regard to our financial condition. The performance indicators relate to interest cover
and leverage. In case of a breach of these covenants the banks are contractually entitled to request early
repayment of the outstanding amount. The carrying amount of the Group’s borrowings is denominated in euro’s.
The Group has the following undrawn borrowing facilities:
Borrowings (€ in thousands) 2008 2007
Undrawn borrowings 175,000 200,000
Total undrawn borrowings 175,000 200,000
Annual repayment schedule (€ in thousands)
2009 158,500
2010 237,750
2011 237,750
2012 792,500
Total 1,426,500
The amounts included above are due contractually and have not been discounted.
The carrying amount and fair value of our non-current borrowings are as follows:
Book value Fair value
Non current borrowings (€ in thousands) 2008 2007 2008 2007
Borrowings11,268,000 0930,355 0
1,268,000 0930,355 0
1 Borrowings do not include amortised costs.
At 31 December 2008, if Euribor would have been 0.5% higher (0.5%) lower with all other variables held constant,
post tax result for the year would have been €2.2 million lower (€3.3 million higher).
Finance leases
These are operating leases for plant and machinery, cars and equipment. The net book value of the assets
related to these leases is €3.2 million. Future minimum lease payments are as follows.
(€ in thousands) 2008 2007
Commitments less than 1 year 1,214 0
Commitments between 1 – 5 years 2,160 0
Commitments longer than 5 years 00
Total minimum lease payments 3,374 0
Less amounts representing finance charges -162 0
Present value of minimum lease payments 3,212 0