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EXPLANATORY NOTES
278
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
Credit Agreement 2010 and Credit Agreement 2011
The evolution of the Credit Agreements 2010 and 2011, signed
at Group level, is summarised below, along with their impact
on the Company’s financial statements.
On 3 May 2012, a Forward Start Credit Agreement (now
termed “Credit Agreement 2010”) was activated with a pool of
major national and international banks. This credit agreement
replaced the previous “Credit Agreement” entered into on 18
April 2007.
The Credit Agreement 2010 is an agreement negotiated
in advance of its period of use, under which the lenders
have made available to Prysmian S.p.A. and some of its
subsidiaries, loans and credit facilities totalling Euro 1,070
million at Group level (including a Term Loan Facility for Euro
320 million made available to Prysmian S.p.A.).
On 22 February 2013 and 15 March 2013, the Prysmian Group
made early repayments of Euro 186 million and Euro 300
million respectively against the Term Loan Facility disbursed
on 3 May 2012; Prysmian S.p.A.’s share of these repayments
was Euro 88,800 thousand and Euro 143,284 thousand
respectively. The first repayment was in respect of payments
due in 2013 and in the first half 2014, while the second
referred to the payment due in December 2014. As a result
of these repayments, Prysmian S.p.A. has accelerated the
amortisation of Euro 2,311 thousand in bank fees relating to
the Credit Agreement 2010; this cost has been treated as a
non-recurring item in Finance costs, as shown in Note 26.
The repayment of the Term Loan Facility 2010 ends on 31
December 2014 with a final payment of Euro 184 million by
the Prysmian Group (of which the Prysmian S.p.A. share is
Euro 87,916 thousand) and has therefore been classified in
current liabilities.
On 7 March 2011, Prysmian S.p.A. entered into a five-year
credit agreement for Euro 800 million with a syndicate of
major banks (known as the “Credit Agreement 2011”). This
agreement comprises a loan for Euro 400 million (Term
Loan Facility 2011), all of which is recorded among the
Company’s liabilities and repayable in full on 7 March 2016,
and a revolving facility for Euro 400 million (Revolving Credit
Facility 2011). The Term Loan Facility 2011 has therefore been
classified in non-current liabilities.
The Credit Agreement 2010 and Credit Agreement 2011 do
not require any collateral security. Further information can be
found in Note 29. Financial covenants.
At 31 December 2013, the fair values of the Credit Agreements
2010 and 2011 approximate the related carrying amounts. The
fair values have been determined using valuation techniques
that refer to observable market data.
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 Prysmian 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 Group’s planned investment
expenditure in Europe during the period concerned.
The EIB Loan was received on 5 February 2014 and will be
repaid in 12 equal half-yearly instalments starting on 5
August 2015 and ending on 5 February 2021.
The following tables summarise the Committed Lines
available to the Company at 31 December 2013 and 31
December 2012:
(in thousands of Euro)
31 December 2013
Total lines
Used
Unused
Term Loan Facility 2010
87,916
(87,916)
-
Term Loan Facility 2011
400,000
(400,000)
-
Total Credit Agreements
487,916
(487,916)
-
EIB Loan
100,000
-
100,000
Total
587,916
(487,916)
100,000
