Michelin couv courteGB

14. Subordinated debt and other long and short-term debt
(in € thousand)
At Dec. 31, 2004 Due within Due in Due in more At Dec.
one year 1 to 5 than five 31, 2003
years years
Subordinated debt 500,000 – – 500,000 500,000
Other long and short-term debt: 500,000 – – 500,000 500,000
Other long and short-term debt:
- Convertible bonds 1,824,919 70,021 1,254,898 500,000 1,890,161
- Trade receivable securitizations (note 7) 675,066 675,066 – – 788,976
- Lease purchases 246,020 57,908 107,707 80,405 257,286
- Other long and short-term debt 1,632,718 1,202,027 408,491 22,200 1,777,095
Subtotal, other long and short-term debt 4,378,723 2,005,022 1,771,096 602,605 4,713,518
Total 4,878,723 2,005,022 1,771,096 1,102,605 5,213,518
Debt secured by collateral at December 31, 2004
excluding lease purchases and trade receivable securitizations: 76,594
Subordinated debt
On December 3, 2003, the Group made a 30-year €500 million last-ranking subordinated issue (TSDR – Titres Subordonnés de Dernier
Rang), callable from December 3, 2013 at the Group’s sole discretion, at par and in cash, in quarterly payments.
Initially fixed at 6.375%, the coupon will be calculated from December 3, 2013, based on 3-month Euribor plus 2.95%.
Where no Compagnie Générale des Etablissements Michelin dividend distributions or prepayments are made, the TSDRs provide for a
differed coupon payment option.
Bond issue
In April 2002, the Group launched a bond issue in two tranches:
• €1 billion tranche with a 6.125% coupon, maturing in April 2009,
• €500 million tranche with a 6.5% coupon, maturing in April 2012.
In November 2004, the Group bought up and cancelled an €50 million block from the bond tranche due to mature in April 2009.
Net debt at December 31, 2004 breaks down as follows (in € thousand):
- Subordinated debt 500,000
- Long and short-term debt 4,378,723
- Cash equivalents and other short-term investments (235,258)
- Cash (1,420,140)
Total 3,223,325