Atari 2010 Annual Report Download - page 84

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
84
March 31, 2010 March 31, 2009
Assumptions
Discount rate 4.0% 5.2%
Annual salary increases 3.0% 3.0%
The discount rate is calculated by reference to the interest rate on 20-year government bonds.
NOTE 13 – DEBT
13.1. DEBT BY TYPE
The Group's debt breaks down as follows:
(€ million)
OCEANE
2011
OCEANE
2020 ORANE bonds
BlueBay
(*)
Other debt
and
borrowings Total
Short-term - - - 46.9 4.2 51.1
Long-term 5.3 0.6 3.0 2.3 11.2
Debt at March 31, 2009 5.3 0.6 3.0 46.9 6.5 62.3
Changes during the period
New borrowings 27.0 2.2 29.2
Repayments (68.6) (4.7) (73.3)
Application of IAS 32 - 39 and increase in
accrued interest 1.2 0.1 1.3
Translation adjustments 0.1 0.1
Debt at March 31, 2010 5.3 0.6 4.2 5.3 4.2 19.5
Short-term 5.3 3.3 8.6
Long-term 5.3 0.6 4.2 0.9 10.9
Debt at March 31, 2010 5.3 0.6 4.2 5.3 4.2 19.5
(*) Former BoA credit facility transferred to BlueBay in December 2009 with the exact terms and conditions
The principal changes during the period were:
- The use of the Banc of America / BlueBay credit facility in an amount of €27 million.
- The repayment of €68.6 million of this Banc of America / BlueBay credit facility.
At March 31, 2010, other debt and borrowings totaled €4.2 million and consisted of the following:
- A leaseback liability of €2.2 million.
- Interest payables to BlueBay amounting to €1.7 million.
- Other short-term debt representing €0.3 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 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.