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Parent Company Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
306
The Company will be entitled to redeem the bonds early and
in full in the cases detailed in the Bond Regulations, in line
with market practice, including:
I. at nominal value (plus accrued interest), starting from 23
March 2016, if the trading price of the Company's ordinary
shares rises to more than 130% of the conversion price in
a given period of time;
II. at nominal value (plus accrued interest), if at least 85%
of the original nominal amount of the Bond is converted,
redeemed and/or repurchased;
III. at nominal value (plus accrued interest), if specific
changes take place in the tax regime applying to the
Bonds.
In the event of a change of control, every bondholder will be
entitled to request early redemption at nominal value plus
accrued interest.
The convertible Bond has a 5-year maturity ending on 8 March
2018 and pays a fixed annual coupon of 1.25%. The placement
of the Bonds was completed on 8 March 2013, while their
settlement took place on 15 March 2013.
On 3 May 2013, the Company sent a physical settlement
notice to holders of the Bonds, granting them the right, with
effect from 17 May 2013, to convert them into the Company's
existing or new ordinary shares.
On 24 May 2013, the securities were admitted to trading on
the unregulated Third Market (a multilateral trading facility
or MTF) on the Vienna Stock Exchange.
The accounting treatment for the convertible Bond has
resulted in the recognition of an equity component of Euro
39,632 thousand and a debt component of Euro 260,368
thousand, determined at the bond issue date.
The fair value of the convertible bond (equity component
and debt component) is Euro 305,520 thousand at 31
December 2014 (Euro 338,844 thousand at 31 December
2013), of which the fair value of the debt component is Euro
263,556 thousand (Euro 265,388 thousand at 31 December
2013). In the absence of trading on the relevant market, fair
value has been determined using valuation techniques that
refer to observable market data.
Finance lease obligations
Finance lease obligations refer to the liability arising after
taking over a finance lease for a building on 14 November
2013; this lease expires on 20 January 2027 and carries an
indexed interest rate, equating to 2.11% for 2014.
Issue value of convertible bond
300,000
Equity reserve for convertible bond
(39,632)
Issue date net balance
260,368
Interest - non-monetary
13,441
Interest - monetary accrued
6,812
Interest - monetary paid
(5,625)
Related costs
(2,273)
Balance at 31 December 2014
272,723
(in thousands of Euro)