Pallet-Management-Services - AFM

105.2% on October 15, 2007, 102.6% on October 15, 2008 and will decline to 100.0% on
October 15, 2009 and thereafter until maturity.
The indenture governing the Senior Secured Notes allows the Company to issue additional
notes in an aggregate principal amount of up to EUR 50.0 million under the same security
package as the Senior Secured Notes, but only to the extent that the Company meets certain
interest coverage ratios on a pro forma basis considering the issuance of the additional notes
and that no default or event of default will have occurred as a consequence of the additional
indebtedness being incurred.
If a change of control of greater than 50.0% of the Company’s voting stock occurs, each holder
of the Senior Secured Notes may individually require the Company to purchase their notes at a
purchase price in cash equal to 101.0% of the principal amount of the Senior Secured Notes
plus accrued and unpaid interest. A change of control, as defined, does not include a change in
ownership if the sale of voting stock to an acquirer is made by holders who received this stock in
connection with the conversion of the former Senior Subordinated Notes.
The indenture governing the Senior Secured Notes contains a number of covenants that, among
other things, limit the Company and its subsidiaries’ ability to incur additional debt, make certain
restricted payments, create certain liens, dispose of assets and subsidiary capital stock, merge
or consolidate, issue guarantees, pay dividends, and otherwise restrict certain corporate
activities. The Senior Secured Notes also limit the Company’s obligations under finance leases
to EUR 25.0 million. The Senior Secured Notes also contain customary events of default,
including non-payment of principal, interest or fees, material inaccuracy of certain
representations and warranties, violation of covenants, cross-default to certain other debt,
certain events of bankruptcy and insolvency, material judgments, and a change of control in
certain circumstances.
The Senior Secured Notes are not listed on a public market. The fair value of the Senior
Secured Notes has been determined by using the fair values of comparable notes of comparable
companies. These comparisons support Company’s assessment that fair value is nearly equal to
nominal value.
Maturities of debt
Long-term debt consists of the following:
EUR in thousands As of December 31,
2006 2005
Senior secured notes 110,000 110,000
Other 215 215
110,215 110,215
Less: current maturities (0) (0)
110,215 110,215
Less: deferred financing costs (3,701) (4,689)
106,514 105,526
The complete amount of EUR 110.2 million is due in 2010.
Financial risk management objectives and policies
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