26. Loans and Borrowings
Loans and borrowings are made up as follows:
30 September 2010 |
30 September 2009 |
|||||
|
|
Current |
Non-current |
Total |
Current |
Non-current |
Total |
|
Revolving credit facility, gross |
105,000 |
– |
105,000 |
– |
105,000 |
105,000 |
|
Unamortised debt issuance cost |
–364 |
– |
–364 |
– |
–851 |
–851 |
|
Revolving credit facility, net* |
104,636 |
– |
104,636 |
– |
104,149 |
104,149 |
|
Finance lease liabilities |
– |
– |
– |
4 |
– |
4 |
|
Loans and borrowings from related parties |
– |
– |
– |
110 |
– |
110 |
|
Other short term debt |
685 |
– |
685 |
4,294 |
– |
4,294 |
|
Other loans and borrowings |
– |
1,325 |
1,325 |
– |
866 |
866 |
|
Total |
105,321 |
1,325 |
106,646 |
4,408 |
105,014 |
109,422 |
|
* Nominal interest rate: EURIBOR + 0.35 %. Effective interest rate: 1.06 % (for the period from 1 October 2009 to 30 September 2010). |
||||||
Unamortised debt issuance cost has changed as follows:
in EUR thousand |
2009/2010 |
2008/2009 |
|
Balance at 1 October |
–851 |
–1,339 |
|
Additions |
– |
– |
|
Amortisation |
487 |
487 |
|
Exchange differences |
– |
– |
|
Balance at 30 September |
–364 |
–851 |
The carrying amounts of loans and borrowings approximate to their fair values.
Other short-term debt consists of short-term liabilities to banks.
Information on the Group’s interest and exchange rate risks is provided in Note 32 ("Additional Disclosures on Financial Instruments").
Revolving Credit Facility
On 16 June 2006, Demag Cranes AG took out a revolving credit facility in the amount of EUR 325,000,000 for which major Group companies are jointly and severally liable to the lending banks. The facility expires on 27 June 2011 and includes a EUR 115,000,000 ancillary facility for cash drawings and bank guarantees. Drawings on the facility at 30 September 2010 totalled EUR 105,000,000 (2009: EUR 105,000,000). This amount is due on 30 November 2010 and is subject to 1.07 percent interest (0.72 percent EURIBOR plus a 0.35 percentage point margin). The loan agreements specify certain financial covenants including a minimum interest cover requirement (ratio of operating EBITDA to consolidated net cash interest payable) and a maximum gearing requirement (net debt to operating EBITDA). If the financial covenants are not met and the non-compliance is not remedied or the lenders do not waive the covenants, there may be grounds for termination. The lenders would then be entitled to call due all amounts owed with immediate effect. There are also certain other contractually agreed circumstances whose occurrence can lead to termination with all outstanding amounts becoming due for repayment with immediate effect. A further right of termination exists in certain instances in the event of a change of control or third-party acquisition of a majority shareholding in Demag Cranes AG.
There are also covenants with regard to additional borrowing, purchases and disposals of assets, and the provision of collateral.
Drawings on the ancillary facility for guarantees totalled EUR 56,198,000 at 30 September 2010 (2009: EUR 63,625,000).
See Note 42, “Events After the Balance Sheet Date” for further information on the follow-up financing.
