Punch Taverns plc 2011 Annual Report

80
Punch Taverns plc
Annual Report and Financial Statements 2011
Notes to the financial statements continued
for the 52 weeks ended 21 August 2011
22 Financial liabilities continued
Issued by Spirit Issuer plc:
20 August 2011 21 August 2010
Amounts falling due Amounts falling due
within
one
year
£m
after
more than
one year
£m
Total
£m
within
one
year
£m
after
more than
one year
£m
Class A1 secured floating rate debenture notes repayable
by September 2026 at LIBOR 1 +0.22% per annum to
September 2011 and LIBOR 1 +0.55% thereafter – – – – 144.7 144.7
Class A2 secured floating rate debenture notes repayable
by June 2029 at LIBOR 1 +1.08% per annum to September 2011
and LIBOR 1 +2.7% thereafter – – – – 188.6 188.6
Class A3 secured fixed / floating rate debenture notes
repayable by September 2019 at 5.86% to September 2014
and LIBOR 1 +0.55% thereafter – – – – 116.7 116.7
Class A4 secured fixed / floating rate debenture notes
repayable by March 2025 at 6.582% to September 2018
and LIBOR 1 +2.775% thereafter – – – – 242.5 242.5
Class A5 secured fixed / floating rate debenture notes
repayable by December 2032 at 5.472% to September 2028
and LIBOR 1 +0.75% thereafter – – – – 174.0 174.0
– – – – 866.5 866.5
Add: premium arising from fair value adjustment – – – 5.0 44.2 49.2
– – – 5.0 910.7 915.7
1
For 3 month deposits.
Total
£m
The debenture notes issued by Spirit Issuer plc were derecognised with the demerger of the Spirit business.
In the current period, the Group redeemed notes with a nominal value of £23.0m, being £2.0m Class A2, £15.0m Class A4 and
£6.0m Class A5 notes.
In the prior period, the Group redeemed notes with a nominal value of £43.7m, being £33.7m Class A4 and £10.0m Class A5 notes.
The Group also sold Class A3 notes with a nominal value of £1.8m in the prior period.
These figures are net of notes held by the Group that were not cancelled as at 21 August 2010, which were £15.9m Class A4 and
£28.2m Class A5 notes held by Punch Taverns Investments (S) Limited.
Interest rate swaps
The Group has taken out various interest rate swaps to reduce the interest rate risk associated with floating rate loans as follows:
Punch Taverns Finance plc
Interest rate swap agreements have been entered into which swap the LIBOR interest rate on the Class B3, Class M2(N) and Class D1
floating rate notes to a fixed rate of 5.954%. The capital amount of these swaps reduces over time to match the contractual repayment
profile of the floating rate notes.
Punch Taverns Finance B Limited
Interest rate swap agreements have been entered into which swap the LIBOR interest rate on the Class A8 and Class C notes to a fixed
rate of 5.1% and 4.7577% respectively. The capital amount of these swaps reduces over time to match the contractual repayment
profile of the floating rate notes. Although the Class A8 swap ensures that cash flows are perfectly hedged over the life of the notes,
it was deemed ineffective as at 21 August 2010 due to the intention to purchase and cancel a portion of these notes ahead of their
expected legal maturity.
Spirit Issuer plc
The interest rate swap agreements which were entered into, which swapped the LIBOR interest rate to a fixed rate of 6.581%
to March 2012 and 6.831% thereafter on the Class A1 and Class A2 debenture notes and, after their respective step-up dates,
4.555% on the Class A3, Class A4 and Class A5 debenture notes, were derecognised with the demerger of the Spirit business.
The capital amount of these swaps reduces over time to match the contractual repayment profile of the floating rate notes.