Carphone Warehouse 2008 Annual Report Download - page 77

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20 Cash and cash equivalents, loans and other borrowings (continued)
£200m 364-day facility with term-out option:
A 364-day bridge facility was arranged in May 2007 as part of negotiations to issue a debut Sterling bond in June 2007. The bond issuance was
subsequently postponed as a result of adverse market conditions and the 364-day facility was retained to provide additional working capital headroom.
The facility agreement has a term-out option, exercisable at the Group’s discretion, for an additional one year period and, as such, the final maturity date
of the facility is June 2009. The facility was undrawn at 29 March 2008 and the term-out option had not been exercised at that date. The facility
agreement is similar to that used for the £550m RCF and the covenant package is identical.
£50m term loan:
The five year bi-lateral £50m term loan, which was signed in December 2005, is fully drawn in Sterling and has a fixed margin. The loan is repayable
in full in December 2010 and has a covenant package identical to that in the £550m RCF.
£225m term loan:
The £225m term loan, which was signed in February 2006, is fully drawn in Euro and the interest rate is calculated in a similar manner to the £550m
RCF. The loan is repayable in full in February 2011 and has a covenant package identical to that in the £550m RCF.
£375m term loan:
In October 2006, the Group agreed a new term loan facility of £375m to assist with the acquisition of AOL’s UK internet access business. The maximum
term of this facility is seven years, comprising a five year initial term and two one-year extension options, which are exercisable at the discretion of the
bank group. The first of these extension options has been successfully exercised and, if the second extension option is exercised, the final maturity date
will be October 2013. The terms of the new facility are similar to the Group’s other committed bank facilities, and the covenant package is identical to
that in the £550m RCF. This facility was fully drawn in Swiss Francs at 29 March 2008.
The average maturity of all non-current borrowings is 4.0 years (2007 – 3.9 years) and the weighted average interest cost was 4.5% (2007 – 4.3%).
Borrowing facilities:
The Group had undrawn committed borrowing facilities at 29 March 2008, in respect of which all conditions precedent had been met, as follows:
2008 2007
£m £m
Maturing in 2009 200.0 390.0
Maturing in 2013 315.0 –
515.0 390.0
The undrawn committed facilities shown above are the £200m 364-day facility with term-out option, maturing in 2009, and the undrawn portion of the
£550m RCF, maturing in 2013.
Debt maturity profile:
The maturity of the Group’s borrowings is as follows:
2008 2007
£m £m
Less than 1 year 38.6 22.7
2 to 3 years 278.4 60.0
3 to 4 years 380.8 273.7
4 to 5 years 235.0 373.9
Total 932.8 730.3
Currency profile of borrowings:
The currency profile of the Group’s borrowings is as follows:
2008 2007
Swiss Swiss
Sterling Euro Franc Other Total Sterling Euro Franc Other Total
By instrument £m £m £m £m £m £m £m £m £m £m
Bank loans and overdrafts 321.2 229.5 381.2 0.9 932.8 130.4 224.8 373.9 0.7 729.8
Loan notes –––––0.5 –––0.5
Total 321.2 229.5 381.2 0.9 932.8 130.9 224.8 373.9 0.7 730.3
Included in other bank loans and overdrafts are South African Rand, Swedish Krona and US Dollar borrowings.
Financial Statements