2007 Reference document (PDF) - Valeo

3 Consolidated
PAGE 118
fi nancial statements at December 31, 2007
Notes to consolidated financial statements
4.10.2. Long-term debt
■ Analysis of long-term debt
At December 31
(In millions of euros) 2007 2006 2005
Bonds 596 595 1,094
OCEANE (1) 435 427 419
Syndicated loans 219 216 221
Lease obligations 9 15 25
Other borrowings 28 49 86
Accrued interest 25 26 39
Long-term debt 1,312 1,328 1,884
(1) The carrying amount of the OCEANE bonds was reduced from 463 million euros to 419 million euros following the application of IAS 32 at January 1, 2005.
Long-term debt includes:
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■
600 million euros worth of eight-year fixed rate bonds issued by
Valeo on June 24, 2005. The interest rate on these bonds is 3.75%
of the nominal amount. These bonds were issued in the context
of the Euro Medium Term Notes program. The effective interest
rate on these bonds is 3.89%;
463 million euros worth of bonds convertible for new shares
and/or exchangeable for existing shares (OCEANE) issued on
August 4, 2003, representing 9,975,754 bonds with a nominal
value of 46.4 euros each. The interest on these bonds is 2.375%
per annum payable in arrears on January 1 of each year. Bearers
of the bonds may request conversion and/or exchange into
common stock at any time, on the basis of 1.013 Valeo share
for one bond.
In addition, Valeo has a call option that may be exercised between
January 31, 2007 and December 31, 2010 if the Valeo share is
valued at an average price of 60 euros. The effective interest
■ Maturities of long-term debt
At December 31
(In millions of euros)
2007 Reference document - VALEO
■
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rate of the OCEANE bonds amounts to 4.54% (4.46% excluding
the call);
two seven-year syndicated loans for a total amount of 225 million
euros issued on July 29, 2005, hedged by two interest rate swaps
which are perfectly matched in both amount and duration. These
loans and the related hedges have the following characteristics:
the first loan is at a variable rate and incorporates a cap which
limits the interest rate to a maximum of 4.735%. It is hedged by
a derivative which offsets the option included in the loan,
the second loan is at a fixed rate of 3.62% and incorporates a
swaption that enables the Group to opt for a variable rate in 2009.
It is hedged by a derivative which has identical characteristics to
those of the call option included in the loan.
2009 2010 2011 2012 2013 and
beyond
< Contents >
Bond issues - - - - 596 596
OCEANE - - 435 - - 435
Syndicated loans - - - 219 - 219
Lease obligations 1 1 1 1 1 5
Other borrowings 2 4 4 3 15 28
TOTAL 3 5 440 223 612 1,283
Total
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