2007 - Pinguely Haulotte

2007
annual report # p105-106
Consolidated financial statements of December 31st, 2007
Note 26 - Borrowings and financial debt
31/12/2007 31/12/2006
Non-current borrowings
Bank borrowings (> 1 year) 114 873 132 445
Including guarantees given 43 258 46 159
Including back-to-back lease obligations 235 636
Miscellaneous loans and borrowings 895 1 024
subtotal 115 768 133 469
Current borrowings
Convertible bonds
Bank borrowings (< 1 year) 31 769 24 998
Including guarantees given 20 064 21 458
Including back-to-back lease obligations 281 327
Miscellaneous loans and borrowings 8
Bank overdrafts 683 152
subtotal 32 460 25 150
Total borrowings 148 228 158 619
In 2005, Haulotte Group contracted a 7-year syndicated loan of €330 million completed of €30 million in July 2006. As a result, the total
credit line has been increased to €360 million.
The total €360 million loan was contracted at a variable rate of interest indexed on the three-month Euribor and divided into four tranches:
- Tranche A + additional credit line: €70 million to refinance the existing debt;
- Tranche B: €120 million to finance capital expenditures;
- Tranche C: €140 million to finance acquisitions;
- Tranche D: €30 million to finance working capital requirements.
At December 31st, 2007, the total amount drawn on this loan was €79 million (the full amount of tranche A of €40 million and the
additional credit line of €30 million and €9 million for tranche B). A swap agreement has been implemented to cover the risks of interest
rate fluctuations (note 19).
Subject to prepayment provided for if certain financial ratios are not met, the loan is subject to the repayment schedule presented in
note 29. At December 31st, 2007, the financial ratios are respected.
In exchange for this syndicated loan, the following commitments were granted to the banking syndicate:
- Pledge of Haulotte Group S.A. goodwill;
- Pledge of Haulotte UK shares;
- The pledge of LEV shares as collateral.
The book value of Group borrowings in euros and British pound sterling are as follows:
31/12/2007 31/12/2006
Euros 82 751 86 293
GBP 1 235 3 327
Other 404 419
Total borrowings excluding guarantees given and back-to-back lease obligations 84 390 90 039
Note 27 - Management of interest-rate risks
The breakdown between fixed rate and variable rate borrowings is as follows:
31/12/2007 31/12/2006
- Fixed-rate 68 017 78 410
- Variable rate 80 211 80 209
Total borrowings 148 228 158 619
A 1% rate increase would result in a maximum additional interest expense, excluding hedges, of approximately K€800.