Financial Information - Uralita
Financial Information - Uralita
Financial Information - Uralita
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ANNUAL REPORT 2006<br />
FINANCIAL INFORMATION<br />
13.INTEREST-BEARING LOANS AND<br />
BORROWINGS<br />
The detail of the balance of this heading in the<br />
consolidated balance sheets at 31 December<br />
2006 and 2005 is the following:<br />
THOUSANDS OF EUROS 31 DECEMBER 2006 31 DECEMBER 2005<br />
DRAWN DOWN<br />
DRAWN DOWN<br />
LONG SHORT LONG SHORT<br />
LIMIT TERM TERM LIMIT TERM TERM<br />
2004 private bond placement<br />
<strong>Uralita</strong>, S.A. 1955<br />
debenture issue<br />
Other loans and credit facilities<br />
Un-matured discounted bills<br />
Less: Issue costs<br />
- 123,484 - - 123,484 -<br />
- - 20 - 20 19<br />
55,977 - 480 75,912 229 22,721<br />
- - 728 -<br />
- (405) - - (944) -<br />
TOTAL<br />
123,079 1,228 122,789 22,740<br />
The private bond placement was held in<br />
November 2004 among US institutional investors<br />
and comprised two tranches, a $129 million<br />
tranche maturing in 7 years and an $23 million<br />
tranche maturing in 10 years (at fixed rates).<br />
The bonds were issued by consolidated<br />
subsidiary <strong>Uralita</strong> BV, headquartered in the<br />
Netherlands. The placement involves covenants<br />
usual in this type of financing, such as meeting<br />
certain financial and profitability targets. The<br />
Group’s Directors believe that the likelihood of<br />
meeting these targets is such that no significant<br />
change in the original conditions of the<br />
transaction is expected to occur.<br />
<strong>Uralita</strong>, S.A.'s 1955 issue of non-convertible<br />
bonds was for an original amount of €300<br />
thousand, paying annual interest of 6.75%. The<br />
issue is secured by the Company’s assets and<br />
the amount outstanding at year-end 2006 will be<br />
repaid in 2007.<br />
Current loans and credit facilities are arranged at<br />
interest rates indexed to the Euribor. All debts<br />
are guaranteed under the personal guarantee of<br />
the individual companies.<br />
The main loans and credit facilities are granted<br />
in euros.<br />
Derivative financial instruments<br />
The Group uses derivative financial instruments<br />
to hedge its exposure to variations in interest and<br />
exchange rates related to the private bond<br />
placement of 2004 described above. The detail<br />
of hedges arranged and outstanding at 31<br />
December 2006 and 2005 is the following:<br />
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