Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Financial assets and liabilities (Continued)
Barclays Bank Invoice Discounting Facility Agreement
Ardagh UK entered into a facility agreement dated 20 November 2003 with Barclays Bank
pursuant to which Barclays Bank has made available an invoice discounting facility of up to a maximum
aggregate principal amount of £35 million for a minimum period of 36 months and renewable annually.
As security for this facility, Ardagh UK has granted Barclays Bank an assignment over certain of its
receivables. Interest charges are based on LIBOR plus a margin.
HVB (Bayerische Hypo- und Vereinsbank) Working Capital and Performance Guarantee Credit Lines
Heye International supports its business activities with two open lines of credit from Bayerische
Hypo und Vereinsbank pursuant to an agreement dated December, 2005. Heye International is entitled
to draw up to A1 million on one of the lines of credit for the purposes of financing its short-term
working capital requirements. The second credit line is available for up to A15 million of guarantee
payments relating to Heye International’s project business. These facilities are secured by a pledge of
all Heye International’s present and future property, plant and equipment and intangible assets, an
assignment over all present and future claims resulting from delivery of goods and services to domestic
and foreign customers and an assignment over all existing and future trade receivables.
HSU Zachodni WBK S.A. Overdraft & HSU Pekao S.A. Overdraft
WBK S.A. and Pekao S.A. have each made overdraft facilities of up to PLZ 5.0 million available
to HSU. These facilities are secured by a charge over certain receivables and inventory. Interest
charges are based on WIBOR plus a margin.
Ardagh Glass Ltd Finance Lease Real Estate
Ardagh Glass Ltd entered into a sale and lease back arrangement with Enville Ltd, an affiliate of
Anglo Irish Bank Corporation plc, on 24 May 2005 whereby it sold all its land and buildings to Enville
for £18 million and leased them back over a fifteen year period in exchange for fixed rental payments
which are subject to rent review every five years. Associated with these arrangements Ardagh Glass
(UK) Ltd has given certain guarantees and indemnities to Anglo Irish Bank Corporation plc and on
the occurrence of specified events Ardagh Glass (UK) Ltd could be required to acquire Anglo Irish
Bank Corporation plc’s interest in Enville. In compliance with IFRS the portion of the lease relating to
the land value, £6.5 million is accounted for as an operating lease while the balance of the lease is
accounted for as a finance lease.
Ardagh Glass Ltd Finance Lease Plant and Equipment
Ardagh Glass Ltd entered into a finance lease arrangement with Anglo Irish Asset Finance plc on
24 May 2005 whereby it sold a substantial portion of its moveable plant and equipment to Anglo Irish
Asset Finance plc and leased it back over a period of seven years. Associated with these arrangements
Ardagh Glass (UK) Ltd has given certain guarantees and indemnities to Anglo Irish Asset Finance plc
and on the occurrence of specified events Ardagh Glass (UK) Ltd could be required to acquire Anglo
Irish Asset Finance plc interest in the leased assets. In compliance with IFRS the entire lease is
accounted for as a finance lease.
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