Form 20-F 2005

High yield notes
In order to extend the average maturity of our debt, on February 14, 2005, we carried out a private placement of High Yield
Notes to institutional investors. This issue of €500 million in Notes issued at 103.5% of the face value increased the tranche of
€200 million in senior Notes issued on May 28, 2003 at a rate of 8% and with a maturity date of June 1, 2010, thus raising it to a
total of €700 million.
Total proceeds received net of professional fees and expenses totaled around €503 million.
Finance leases
On February 18, 2005, Rhodia Inc. made certain finance lease prepayments for a total amount of approximately €108 million.
European medium-term notes (EMTN) program
On the maturity date, we redeemed the balance of the notes issued as part of the EMTN program earning interest at the rate of
6.25%, maturing in May 2005 in the principal amount of €49 million. On March 18, 2005, we closed the early redemption of Notes
issued in connection with the EMTN program bearing interest at the rate of 6% and maturing in March 2006 in the principal amount
of €300 million. At the end of the offer, the principal amount of the Notes we redeemed totaled approximately €246 million and the
principal amount of the Notes remaining in circulation totaled approximately €54 million. The early redemption premium totaled
approximately €8 million.
Asset securitization programs
We arranged two securitization programs in 2005. The pan-European securitization program signed with Calyon in December 2004 and
in place since January 2005 replaced the former securitization programs in Europe. The financing available under this securitization
program amounted to €242 million and £22 million. In November 2005, a North American securitization program in the amount of
$100 million was signed and set up with HSBC to replace the existing program that matured in January 2006.
At December 31, 2005, the amount of uncollected trade receivables sold by Group companies as part of the securitization programs
and assignment of trade receivables agreements totaled approximately €443 million, for which we received a net cash collection
of approximately €328 million. The difference, which corresponds to over-collateralization, was recognized in Trade and other
receivables in the balance sheet.
Uncommitted credit facilities
We and certain subsidiaries, including unconsolidated subsidiaries, have entered into a number of uncommitted facilities, overdraft
authorizations and letters of credit with various financial institutions. The majority of these facilities exist to finance working capital
needs and for general corporate purposes. These facilities do not typically have a specified maturity and the lenders may generally
cancel these facilities with relatively short notice.
The uncommitted credit facilities and overdraft authorizations of consolidated subsidiaries totaled €105 million at December 31, 2005.
Guarantees
We have entered into guarantees for certain consolidated and unconsolidated subsidiaries. At December 31, 2005, guarantees for
our unconsolidated subsidiaries totaled €12 million.
52 Form 20 - F 2005 - Rhodia