Bridgestone 2003 Annual Report Download - page 38

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BRIDGESTONE
Notes and accounts receivable, inventories, and property, plant and equipment were pledged as collateral for certain bank loans. The aggregate
carrying amount of the assets pledged as collateral for short-term bank loans of ¥6,574 million ($61,365 thousand) and long-term bank loans of
¥1,252 million ($11,687 thousand) at December 31, 2003 is ¥25,797 million ($240,801 thousand).
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided under certain circum-
stances if requested by such banks and that certain banks have the right to offset cash deposited with them against any long-term or short-term
debt or obligation that becomes due and, in case of default and certain other specified events, against all other debt payable to the banks. The
Company has never been requested to provide any additional collateral.
At December 31, 2003, the Company had unused committed lines of credit with various banks for short-term financing, amounting to ¥30,000
million ($280,034 thousand). The Company compensates banks for the lines of credit in the form of commitment fees, which were not material for
the year ended December 31, 2003.
Effective January 6, 2004, BSA and its major subsidiaries in the U.S. entered into separate second amended and restated revolving credit agree-
ments with a syndicate of banks providing an aggregate borrowing commitment of $1.5 billion. These agreements expire on January 4, 2005.
These agreements contain certain customary affirmative and negative covenants, the most restrictive of which include (i) the maintenance by BSA
and its major subsidiaries of certain tangible net worth; (ii) restrictions on entering into additional debt arrangements and the sale of assets. Further,
an event of default under these agreements by any of the major subsidiaries in the U.S. causes an event of default under the BSA second amended
and restated revolving credit agreement.
The above agreements replace the separate amended and restated revolving credit agreements entered into on January 7, 2003, by BSA and its
major subsidiaries which provided an aggregate borrowing commitment of $1.5 billion and expired on January 6, 2004. The terms of the separate
amended and restated revolving credit agreements were substantially the same, with the exception of the removal of the requirement of the mainte-
nance by the Company of a certain credit rating, as those of the second amended and restated revolving credit agreements discussed above.
Additionally, effective January 6, 2004, BSA entered into agreements to borrow $400 million under four $100 million unsecured term loans with
two banks. Under these agreements, the date for repayment of the borrowings of $300 million is January 5, 2007 and the date of repayment of the
remaining $100 million is January 5, 2009. These agreements contain certain customary affirmative and negative covenants, the most restrictive of
which includes the maintenance by BSA of certain consolidated tangible net worth and restrictions upon BSA and its subsidiaries on the sale of
assets.
Annual maturities of long-term debt at December 31, 2003 are as follows:
Thousands of
Year ending December 31, Millions of yen U.S. dollars
2004 ¥2,566 $ 23,952
2005 103,866 969,532
2006 14,562 135,928
2007 57,419 535,975
2008 294 2,745
2009 and thereafter 223,210 2,083,543
Total ¥401,917 $3,751,675