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Parent Company Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
280
Significant events in 2014
A.
GENERAL INFORMATION
Prysmian S.p.A. ("the Company") is a company incorporated
and domiciled in Italy and organised under the laws of the
Republic of Italy. The Company was formed on 12 May 2005
and has its registered office in Viale Sarca, 222 - Milan (Italy).
Through its controlling interests in Italian companies and
the sub-holding companies Prysmian Cavi e Sistemi S.r.l.
and Draka Holding B.V. (acquired on 22 February 2011), the
Company indirectly owns equity interests in the Prysmian
The following significant events took place over the course
of 2014:
EIB Loan
On 18 December 2013, Prysmian S.p.A. entered into a loan
agreement with the European Investment Bank (EIB) for
Euro 100 million, to fund the Group's European Research &
Development (R&D) programmes over the period 2013-2016.
The EIB Loan is particularly intended to support projects
developed in the Group's R&D centres in six countries
(France, Great Britain, the Netherlands, Spain, Germany and
Italy) and represents about 50% of the Prysmian Group's
planned investment expenditure in Europe during the period
concerned.
The EIB Loan was received on 5 February 2014; it will be
repaid in 12 equal half-yearly instalments starting on 5
August 2015 and ending on 5 February 2021.
Revolving Credit Facility 2014
On 19 February 2014, Prysmian S.p.A signed a credit
agreement for Euro 100million (the "Revolving Credit Facility
2014") with Mediobanca - Banca di Credito Finanziario
S.p.A.. Under this five-year agreement, Mediobanca has
provided the Prysmian Group with a line of credit intended
to refinance existing debt and working capital requirements.
Ansaldo 20 spin-off
On 19 February 2014, effective 1 March 2014, the Ansaldo
20 property complex, located in Milan, was spun off from
the subsidiary Fibre Ottiche Sud – F.O.S. S.r.l. to Prysmian
S.p.A.. The site of this property complex will undergo ren-
ovations that will transform it into the Prysmian Group's
new headquarters. This spin-off has led to a reduction of
Group's operating companies. The Company and its subsid-
iaries produce, distribute and sell cables and systems and
related accessories for the energy and telecommunications
industries worldwide.
Prysmian S.p.A. has been listed on the Italian Stock Exchange
since 3 May 2007 and has been included since September
2007 in the FTSE MIB index, comprising the top 40 Italian
companies by capitalisation and stock liquidity.
Euro 14,772 thousand in the value of the investment in Fibre
Ottiche Sud – F.O.S. S.r.l. and a corresponding increase in the
value of Land, Buildings and Assets under construction.
Credit Agreements 2010 and 2014
On 28 February 2014, Prysmian S.p.A. prepaid the out-
standing balance owed under the Term Loan Facility 2010,
amounting to Euro 88 million that had been due on 31
December 2014.
On 27 June 2014, Prysmian S.p.A. signed an agreement
(the "Credit Agreement 2014") under which a syndicate of
premier banks made available a long-term credit facility for
Euro 1,000 million (the "Syndicated Revolving Credit Facility
2014"). The facility, which expires on 27 June 2019, can also
be used for the issue of guarantees. This facility can also be
drawn down by Prysmian Treasury S.r.l., the Group's central
treasury company.
The new revolving facility is intended to refinance the
Revolving Credit Facility 2010 and to finance the Group's
other operating activities. On the same date as agreeing
this new facility, Prysmian S.p.A. extinguished early the
Revolving Credit Facility 2010, originally due to expire on
31 December 2014 and carrying a maximum permitted
drawdown of Euro 400 million.
Antitrust investigation
On 2 April 2014, the European Commission concluded the in-
vestigations started in January 2009 by adopting a decision
under which it found that, between 18 February 1999 and 28
January 2009, the world's largest cable producers, including
Prysmian Cavi e Sistemi S.r.l., adopted anti-competitive
practices in the European market for high voltage submarine
and underground power cables.