TomTom 2011 Annual Report Download - page 69

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23. NON-CONTROLLING INTERESTS (MINORITY INTERESTS)
Movements in non controlling interests were as follows:
(€ in thousands) 2011 2010
Opening balance at 1 January 5,416 5,094
Non controlling interest in the net result of subsidiaries – 1,107 – 98
Dividends paid – 542 – 251
Change in share non controlling interests – 960 – 313
Currency translation differences – 356 984
CLOSING BALANCE AT 31 DECEMBER 2,451 5,416
24. BORROWINGS
(€ in thousands) 2011 2010
Non-current 0384,011
Current1 383,810 203,586
TOTAL BORROWINGS 383,810 587,597
1 €388 million of the original loan amount will be repaid in December 2012. The full amount payable on the loan is reduced by the netting off of the loan transaction costs
that are amortised over the period of the loan through an interest charge.
Our existing borrowings originated from a syndicated loan facility entered into in 2008 to fund the Tele Atlas acquisition. This facility
comprises of a term loan and a revolving credit facility and has an annual repayment schedule until its termination date on 31 December
2012. The interest is in line with market conditions and is based on Euribor plus 1.50%. The average interest percentage paid on the
borrowings in 2011 was 3.08% (2010: 3.07%).
The terms of the agreement include certain covenants clauses whereby the group is required to meet certain performance indicators
with regard to our interest cover (5.0) and leverage ratio (2.0) which are tested twice a year. Interest cover is defi ned as the ratio of the
last twelve months (‘LTM’) EBITDA to LTM interest expense for the relevant test period. Leverage ratio is defi ned as the ratio of total
consolidated net debt as at the testing date to the consolidated LTM EBITDA in respect of the relevant period ending on that date. In case
of a breach of these covenants the banks are contractually entitled to request early repayment of the outstanding amount.
In 2011 the group repaid €210 million, of which €175 million was repaid ahead of schedule in the second half year and the remaining
€35 million at the end of December in line with our repayment schedule. As at 31 December 2011 the group had undrawn borrowing
facilities amounted to €174.2 million (2010: €174.2 million).
The notional amount and the fair value of our non-current borrowings as at 31 December 2011 was nil as the remaining borrowings
become due in 2012 and hence presented as current liabilities (2010: Notional amount: €388 million; Fair value: €382 million).
The 2010 fair value of the non-current borrowings is estimated on the basis of discounted cash fl ow analysis using recent market interest
rates paid by comparable companies on borrowings with comparable terms.
The fair value of the outstanding current borrowings is estimated to approximate its notional amount.
On 1 April 2011 TomTom signed a forward-start facility arrangement comprising of a €250 million term loan facility and a €150 million
revolving credit facility which will replace the existing borrowings as from 31 December 2012. The new loan of €250 million requires
repayment of €75 million on 31 December 2013 and 31 December 2014 and the remaining €100 million on 31 March 2016. The
covenants of this new facility require the group to have an interest cover of 4.0 and leverage ratio of 3.0 which will be tested twice a year
starting from 31 December 2012. The interest rate on this new loan facility is based on Euribor plus a spread which depends on certain
leverage covenants.