Atari 2009 Annual Report Download - page 91

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
91
NOTE 13 – DEBT
13.1. DEBT BY TYPE
The Group's debt breaks down as follows:
The principal changes during the period were:
- The use of the Banc of America credit facility in an amount of €51.1 million.
- The repayment of €4.2 million of this Banc of America credit facility.
- €15.3 million in financing from Namco Bandai in respect of the 34% interest acquired in Namco Bandai Partners.
- The repayment of €9.8 million of the BlueBay credit facility.
- An increase in the use of factoring arrangements corresponding to €2.5 million.
- €28.1 million reclassified to liabilities held for sale.
At March 31, 2009, other debt and borrowings totaled €6.5 million and consisted of the following:
- A leaseback liability of €3.2 million.
- Interest payable to Banc of America amounting to €3.1 million.
- Other short-term debt representing €0.2 million.
OCEANE 2011 BONDS
On May 18, 2000, the Company issued 8.941.517 bonds (the "OCEANE 2000-2005 bonds") with a nominal value of €39
each, convertible or exchangeable for new or existing common stock, representing an aggregate nominal value of
€412.3 million (including redemption premiums totaling approximately €63.6 million). The bonds, which originally matured
on July 1, 2005, carry interest at 1.5% a year (corresponding to a gross yield to maturity of 4.75%, including the
redemption premium). Each bond was originally immediately convertible into 1 Atari common share. This conversion
ratio was increased to 1.05 shares in January 2002 to take into account the allocation of free shares on that date. The
Company has the option of calling the bonds if, prior to their maturity, the price of Atari common stock rises above a pre-
defined level. A prospectus was published in connection with the bond issue and was approved by the COB
(Commission des opérations de bourse, the predecessor of the AMF – French securities regulator) on May 18, 2000
under No. 00-823.
Two successive simplified public offers have been made to exchange these OCEANE bonds:
 The first of the offers ran from November 11 to December 1, 2003 with the Company offering to exchange each
tendered OCEANE 2000-2005 bond for 1.05 newly-issued shares and 5 new OCEANE bonds (the “OCEANE 2003-
2009 bonds”), each carrying a warrant for new shares in the Company. On December 19, 2003, the AMF issued
notice no. 203C2191 in which it stated that 2.191.180 OCEANE 2000-2005 bonds had been tendered under the
offer.
At their meeting of March 4, 2005, the OCEANE 2000-2005 bondholders approved the following amendments to
the bond indenture:
 extending the bonds‟ maturity date to July 1, 2011;
 cancelling the redemption premium and setting the redemption amount at nominal value (i.e. €39.0 per
bond);
 increasing the conversion ratio to 10.5 Atari shares for each OCEANE bond.