Bridgestone 2004 Annual Report Download - page 44

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Bridgestone Annual Report 2004
Long-term debt at December 31, 2004 and 2003 consists of the following:
Thousands of
Millions of yen U.S. dollars
2004 2003 2004
Borrowings from banks, insurance companies and others, weighted average
interest rate of 2.1% at December 31, 2004 and 1.8% at December 31, 2003
denominated in mainly Japanese yen, U.S. dollars and euros:
Secured ¥ 2,649 ¥ 1,252 $ 25,420
Unsecured 263,843 270,665 2,531,840
1.7% yen unsecured straight bonds, due 2007 20,000 20,000 191,920
2.0% yen unsecured straight bonds, due 2010 30,000 30,000 287,880
0.6% yen unsecured straight bonds, due 2010 30,000 30,000 287,880
0.9% yen unsecured straight bonds, due 2013 50,000 50,000 479,800
Unsecured 0.3% Euro Medium Term Notes due 2007 3,146 —30,189
Total 399,638 401,917 3,834,929
Less current portion (91,771) (2,566) (880,635)
Long-term debt, less current portion ¥ 307,867 ¥399,351 $2,954,294
Annual maturities of long-term debt at December 31, 2004 are as follows:
Thousands of
Year ending December 31, Millions of yen U.S. dollars
2005 ¥ 91,771 $ 880,635
2006 14,423 138,403
2007 59,942 575,204
2008 58,771 563,967
2009 11,030 105,844
2010 and thereafter 163,701 1,570,876
Total ¥399,638 $3,834,929
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 ¥3,259 million ($31,273 thousand) and long-
term bank loans of ¥2,649 million ($25,420 thousand) at December 31, 2004 is ¥27,399 million ($262,921 thousand).
General agreements with respective banks provide, as is customary in Japan, that additional collateral must be provided under cer-
tain circumstances 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, 2004, the Company had unused committed lines of credit with various banks for short-term financing, amounting
to ¥30,000 million ($287,880 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, 2004.
Effective January 31, 2005, Bridgestone Americas Holding, Inc. (“BSAH”) and its major subsidiaries in the U.S. entered into separate
third amended and restated revolving credit agreements with a syndicate of banks providing an aggregate borrowing commitment of
$1.5 billion. These agreements expire on January 30, 2006. These agreements contain certain customary affirmative and negative
covenants, the most restrictive of which includes (i) the maintenance by BSAH and its major subsidiaries of their consolidated 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 BSAH third amended and restated revolv-
ing credit agreement. The above agreements replace the separate second amended and restated revolving credit agreements entered
into on January 6, 2004, by BSAH and its major subsidiaries which provided an aggregate borrowing commitment of $1.5 billion, ini-
tially expired on January 4, 2005 and were extended to January 31, 2005. The terms of the separate second amended and restated
revolving credit agreements were substantially the same, with the exception of the removal of the guarantee by the Company, as those
of the third amended and restated revolving credit agreements discussed above.