Alto Palermo S.A. (APSA)

Alto Palermo S.A. (APSA)
Notes to the Consolidated Financial Statements (continued)
(In Argentine Pesos, except as otherwise indicated)
4. Breakdown of the main captions (continued)
h. Short-term and long-term debt (continued)
Long-term debt consists of the following:
F-27
As of June 30,
2007 2006
Convertible Notes (iv)........................................................... Ps. 146,076,000 Ps. 145,755,576
Non-Convertible Notes (iv) ................................................. 525,180,000 - -
Uncollateralized loans (vii)................................................... 5,597,357 - -
Deferred debt costs (Note 3.p) .............................................
Seller financing for acquisitions including accrued
(4,823,494) - -
interest (v) (Note 2.h)............................................................ 6,186,000 - -
Others..................................................................................... 536,022 98,268
Ps. 678,751,885 Ps. 145,853,844
(i) As of June 30, 2006, related to a Ps. 50 million syndicated loan granted by two financial institutions. This loan
was amortized in four six-month equal and consecutive installments beginning October 5, 2005. The syndicated loan
accrued interest at a 7.875% fixed rate during the first year and at a variable rate (Encuesta) plus 3% during the second
year. The loan included various restrictive covenants, which among other things required the Company to maintain
certain financial ratios. Proceeds from this loan were used to repay the outstanding liabilities for Ps. 48.4 million. The
loan was fully paid on April 9, 2007.
(ii) As of June 30, 2006, related to a US$ 11.0 million loan granted by Deutsche Bank S.A. This loan accrued
interest at LIBOR plus 3.25%. The loan was fully paid on August 1, 2006.
(iii) Generally, the Company's short-term borrowings are in the form of overdraft facilities and/or bank loans with
original maturities of less than one year. The weighted average interest rates on short-term debt were 10.1% and 9.5% as
of June 30, 2007 and 2006, respectively. The Company generally used the proceeds from these borrowings for working
capital needs and other general corporate purposes. The Company had unused lines of credit under the short-term bank
lines of Ps. 381.4 million at June 30, 2007.
(iv) See Note 15, for details of the issuance of Convertible and Non-Convertible Notes.
(v) As of June 30, 2007 represents seller financing for the acquisition of Empalme. This amount accrues 6%
nominal annual interest payable in three installments of US$ 2.0 million each, due on December, 2007; June, 2008 and
December, 2008. As of June 30, 2006 the balances were primarily comprised of (a) Ps. 3.3 million of principal plus Ps. 3
million of CER-indexing and Ps. 1.2 million of accrued interest relating to the seller financing obtained in the acquisition
of Shopping Neuquén, which accrued interest at six-month LIBOR (4.99% as of June 30, 2006), and (b) Ps. 5.4 million
relating to the seller financing obtained in the acquisition of Mendoza Plaza Shopping (including imputed interest).
(vi) Related to a debt from Shopping Neuquén S.A. which is guaranteed by a mortgage over the plot of land.
(vii) The banking and financial loans accounts include a loan from Banco de la Ciudad de Buenos Aires to
Tarshop for Ps. 5.0 million, which is secured by Certificates of Participation related to the Fideicomisos Financieros
Tarjeta Shopping Series XII, XIV, XVI and XVIII. Additionally, Certificates of Participation related to Fideicomisos
Financieros Tarjeta Shopping Series XXI, XXIII, XXV and XXVI for Ps. 11.7 million were granted as a pledge to the
Standard Bank (formerly Bank Boston N.A.) as guarantee.