Food Lion 2012 Annual Report Download - page 119

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DELHAIZE GROUP FINANCIAL STATEMENTS ’12 // 117
18. Financial Liabilities
18.1 Long-term Debt
Delhaize Group manages its debt and overall financing strategies using a combination of short, medium and long-term debt and
interest rate and currency swaps. The Group finances its daily working capital requirements, when necessary, through the use of
its various committed and uncommitted lines of credit. The short and medium-term borrowing arrangements generally bear
interest at the inter-bank offering rate at the borrowing date plus a pre-set margin. Delhaize Group also has a treasury notes
program available.
The carrying values of long-term debt (excluding finance leases, see Note 18.3), net of discounts and premiums, deferred
transaction costs and hedge accounting fair value adjustments were as follows:
(in millions of €)
Nominal Interest
Rate
Maturity
Currency
December 31,
2012
2011
2010
Senior notes, unsecured
5.70%
2040
USD
438
445
430
Debentures, unsecured
9.00%
2031
USD
204
208
201
Notes, unsecured
8.05%
2027
USD
52
53
51
Senior fixed rate bonds(1)
3.125%
2020
EUR
397
—
—
Senior notes(1)
4.125%
2019
USD
232
—
—
Retail bond, unsecured
4.25%
2018
EUR
400
400
—
Bonds, unsecured
6.50%
2017
USD
339
345
334
Notes, unsecured(1)
5.625%
2014
EUR
229
541
544
Senior notes, unsecured(1)
5.875%
2014(3)
USD
75
231
223
Bonds, unsecured(2)
5.10%
2013
EUR
80
80
80
Notes, unsecured
8.125%
2011
USD
—
—
38
Other debt
4.58% to 7%
2013 to 2031
USD
15
14
10
Mortgages payable
8.25%
2010 to 2016
USD
1
2
2
Senior notes
7.06%
2010 to 2016
USD
6
6
7
Other notes, unsecured
13.21%
2010 to 2013
USD
—
—
1
Floating term loan, unsecured
LIBOR 6m+45bps
2012
USD
—
87
84
Bank borrowings
EUR
1
1
1
Total non-subordinated borrowings
2 469
2 413
2 006
Less current portion
(156)
(88)
(40)
Total non-subordinated borrowings, non-current
2 313
2 325
1 966
____________________
(1) Notes are part of hedging relationship (see Note 19) and refinancing transactions that took place in 2012 (see below).
(2) Bonds issued by Delhaize Group’s Greek subsidiary Alfa Beta.
(3) Redeemed in January 2013 (see below).
The interest rate on long-term debt (excluding finance leases, see Note 18.3) was on average 4.4%, 5.0% and 5.1% at
December 31, 2012, 2011 and 2010, respectively. These interest rates were calculated considering the interest rate swaps
discussed in Note 19.
Delhaize Group has a multi-currency treasury note program in Belgium. Under this program, Delhaize Group may issue both
short-term notes (commercial paper) and medium-term notes in amounts up to €500 million, or the equivalent thereof in other
eligible currencies. No notes were outstanding at December 31, 2012, 2011 and 2010.
Refinancing of Long-term Debts
In April 2012, Delhaize Group issued $300 million aggregate principal amount of senior notes with an annual interest rate of
4.125% due 2019. The senior notes were issued at a discount of 0.193% on their principal amount. The offering of the notes was
made to qualified investors pursuant to an effective registration statement filed by Delhaize Group with the U.S. Securities and
Exchange Commission (SEC), and are not listed on any stock exchange. At the same time, the Group completed a tender offer
for cash prior to maturity of up to €300 million aggregate principal amount of its outstanding €500 million 5.625% senior notes
due 2014. The net proceeds of the debt issuance were used in part to fund the partial repurchase of these senior notes for a
nominal amount of €191 million, at a price of 108.079%.