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Parent Company Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
304
Credit Agreements
As at the date of 31 December 2014, Prysmian S.p.A. has the
following Credit Agreements in place:
Credit Agreement 2011
The Credit Agreement 2011 is an agreement, entered into by
Prysmian on 7 March 2011 with a syndicate of major banks, for
Euro 800 million with a five-year maturity. This agreement
comprises a loan for Euro 400 million (the "Term Loan
Facility 2011") and a revolving facility for Euro 400 million
(the "Revolving Credit Facility 2011"). The entire amount
of the Term Loan Facility 2011 is scheduled for repayment
on 7 March 2016; the loan has therefore been classified in
non-current liabilities.
As at 31 December 2014, the Revolving Credit Facility 2011
was not being used (like at 31 December 2013).
The fair value of the Credit Agreement 2011 at 31 December
2014 approximates its related carrying amount. Fair value
has been determined using valuation techniques that refer
to observable market data.
No collateral security is required for the Credit Agreement
2011; further information can be found in Note 29. Financial
covenants.
Syndicated Revolving Credit Facility 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"). This facility can also be drawn down by Prysmian
Treasury S.r.l., the Group's central treasury company.
On the same date as entering this new agreement, Prysmian
S.p.A. extinguished early the Revolving Credit Facility 2010,
originally due to expire on 31 December 2014 and carrying a
maximumpermitted drawdown of Euro 400million. The Term
Loan Facility 2010, also maturing on 31 December 2014, had
been extinguished early on 28 February 2014 with repayment
of the outstanding balance of Euro 87,916 thousand.
The Credit Agreement 2014, which expires on 27 June 2019, can
also be used for the issue of guarantees. The new revolving
facility is intended to refinance the Revolving Credit Facility
2010 and to finance the Group's other operating activities.
As at 31 December 2014, this facility was not being used.
In addition to the Credit Agreements described above,
Prysmian S.p.A.'s other major credit agreements are as
follows:
Revolving Credit Facility 2014
On 19 February 2014, Prysmian S.p.A. signed a credit
agreement for Euro 100 million (the "Revolving Credit Facility
2014") with Mediobanca - Banca di Credito Finanziario S.p.A..
Under this five-year agreement, Mediobanca has provided
the Group with a line of credit intended to refinance existing
debt and working capital requirements.
As at 31 December 2014, the Revolving Credit Facility 2014
had been drawn down by Euro 30,000 thousand.
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.
The fair value of the EIB Loan at 31 December 2014 approxi-
mates the related carrying amount. Fair value has been de-
termined using valuation techniques that refer to observable
market data.