301
b) Non-financial covenants
A number of non-financial covenants have been established
in line with market practice applying to transactions of a
similar nature and size. These covenants involve a series
of restrictions on the grant of secured guarantees to third
parties, on the conduct of acquisitions or equity transactions,
and on amendments to the Company’s by-laws.
Default events
The main default events are as follows:
• default on loan repayment obligations;
• breach of financial covenants;
• breach of some of the non-financial covenants;
• declaration of bankruptcy or subjection of Group
companies to other insolvency proceedings;
• issuance of particularly significant judicial rulings;
• occurrence of events that may adversely and significantly
affect the business, the assets or the financial conditions
of the Group.
Should any default event occur, the lenders are entitled
to demand full or partial repayment of the outstanding
amounts lent under the Credit Agreements, together with
interest and any other amount due under the terms and
conditions of these Agreements. No collateral security is
required.
The evolution of the Covenants for the above agreements is shown in the following table:
(*) The ratios have been calculated on the basis of the definitions contained in the Credit Agreement 2010 and the Credit Agreement 2011.
(*) The ratios have been calculated on the basis of the definitions contained in the Credit Agreement 2010 and the Credit Agreement 2011.
30 June
31 December
30 June
31 December
30 June
31 December
30 June 2014
2011
2011
2012
2012
2013
2013 and thereafter
Net financial position/EBITDA (*)
3.50x
3.50x
3.50x
3.00x
3.00x
2.75x
2.50x
EBITDA/Net finance costs (*)
4.00x
4.00x
4.00x
4.25x
4.25x
5.50x
5.50x
31 December 2013
31 December 2012
EBITDA/Net finance costs (*)
6.91
6.78
Net financial position/EBITDA (*)
1.28
1.32
The above financial ratios comply with both the covenants contained in the Credit Agreement 2010 and in the Credit Agreement 2011.
Actual financial ratios reported at period end, calculated at a consolidated level for the Prysmian Group, are as follows:
Net cash flow provided by operating activities amounted
to Euro 283,310 thousand in 2013, inclusive of Euro 27,097
thousand in taxes collected by the Group’s Italian companies
for IRES transferred under the group tax consolidation (art.
117 et seq. of the Italian Income Tax Code).
Investing activities provided a net positive Euro 124,112
thousand in cash flow, after collecting Euro 202,286
thousand in dividends from subsidiaries.
Net finance costs recognised in the income statement
came to Euro 38,776 thousand inclusive of non-cash items;
excluding these items, net cash finance costs reflected in the
statement of cash flows amounted to Euro 23,934 thousand,
most of which referring to interest expense, bank fees and
other incidental expenses in connection with the Credit
Agreement 2010, the Credit Agreement 2011, the Convertible
bond and the Non-convertible bond.
Cash flow relating to financing activities includes the
proceeds of the Convertible bond and the early repayment of
the Credit Agreement 2010.
30. STATEMENT OF CASH FLOWS
