2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

PARENT COMPANY FINANCIAL STATEMENTSNotes to the income statement and balance sheet4Liquidity riskCasino, Guichard-Perrachon had confirmed credit facilities totalling €1,640.0 million and available cash of €771.6 million at 31 December2010, ensuring that it has sufficient liquidity to meet its needs.Confirmed bank lines of creditAmountof the facility Drawdowns DueSyndicated lines of credit (1) Variable rate 1,200.0 - 2015Confirmed bank lines of credit Variable rate 290.0 - 2012Confirmed bank lines of credit Variable rate 150.0 - 2013TOTAL 1,640.0(1) The €1,200 million syndicated line of credit was renewed in August 2010 for fi ve years.The Company’s loan and bond agreements include the customarycovenants and default clauses, including pari passu, negative pledgeand cross-default clauses.Bonds placed on the euro market do not include any covenantsrelated to financial ratios.At 31 December 2010, the net debt to EBITDA ratio stood at 2.14compared with a minimum requirement of 3.5. The group considersthat it can comply comfortably with its covenants over the nexttwelve months.Some of the loan agreements, in an aggregate principal amount of€3,705 million, contain an acceleration clause at the lender’s discretionshould Casino, Guichard-Perrachon SA’s long-term senior debt ratingbe downgraded to non-investment grade due to a majority shareholderchange. In this case, the group would be obliged to pay the relevantloans on demand. Other loan agreements, in an aggregate principalamount €3,159 million, contain a coupon step-up clause increasingthe interest rate should Casino, Guichard-Perrachon SA’s long-termsenior debt rating be downgraded to non-investment grade.At 31 December 2010, Casino, Guichard-Perrachon’s main covenantswere as follows:■■■■The €1.2 billion syndicated credit line renewed in August 2010 andthe BNP Paribas and Santander confirmed credit lines are subject toa consolidated net debt to consolidated EBITDA ratio of < 3.5;The other confirmed credit lines are subject to a consolidated netdebt to consolidated EBITDA ratio of < 3.7;The Calyon structured loan is subject to a consolidated net debtto consolidated EBITDA ratio of < 4.3;The ratios applicable to the US Private Placement Notes are asfollows:Ratio Required Actual at 31 Dec. 2010Consolidated net debt/consolidated EBITDA (1) < 3.50 (2) 2.14Consolidated net debt/consolidated equity < 1.20 0.48Consolidated intangible assets/consolidated equity < 1.25 0.89(1) EBITDA (earnings before interest, taxes, depreciation and amortisation) = trading profi t plus operating depreciation and amortisation.(2) The consolidated net debt to consolidated EBITDA requirement decreased from 3.7 to 3.5 in 2010 due to the inclusion of the new syndicated credit line in the covenants applicable to theUS Private Placement Notes.NOTE 14. OTHER LIABILITIES€ millions 2010 2009Related companies 725.6 654.3Other liabilities 70.2 114.3Deferred income 34.8 11.5OTHER LIABILITIES 830.6 780.1• o/w due within one year793.4 757.1• o/w loans due beyond one year37.2 23.0Other liabilities include €47.6 million in accrued expenses.Registration Document 2010 | Casino Group145