2010 annual report - touax group

Annual report 2010
➜ note 28.5. Security and guarantees
Letters of comfort and guarantees are issued by the parent company for bank loans granted to its subsidiaries.
(€ thousands) < 1 year 1 - 5 years > 5 years Total
Guarantees given to banks in return for loans used by subsidiaries 18,903 72,355 118,189 209,447
Remaining liabilities that correspond to the commitments made to subsidiaries amount to 140,329 thousand Euros on 31 st December
2010.
The security and guarantees granted by TOUAX SCA are listed in paragraph 7.2 on page 29.
note 29. Further details regarding finance leases (capitalized)
(€ thousands) Land Lease equipment Total 2010
Original value 762 171,467 172,229
Amortization for the period 7,702 7,702
Cumulative amortization 24,864 24,864
Net book value 762 146,603 147,366
Future payments (min.)
(€ thousands) Land Leasing Total 2010 Interest Present value Residual
equipment of future value
payments
2011 23,562 23,562 5,411 18,151 139
2012 22,754 22,754 4,508 18,246
2013 22,192 22,192 3,563 18,629 52
2014 20,257 20,257 2,604 17,653 144
2015 17,362 17,362 1,740 15,622 122
> 5 years 28,036 28,036 1,840 26,196 991
TOTAL 134,163 134,163 19,666 114,497 1,448
Amount charged to income statement
(amortization & financial charges) 2 13,387 13,389
note 30. Other information
➜ note 30.1. Further details regarding
the Modul Finance I EIG
In December 1997 and during the 1998 fiscal year, the TOUAX
Group carried out an asset backed securitization operation by
transferring 7,869 modular buildings worth €42 million to a
French Economic Interest Group, called Modul Finance I EIG.
Members of the EIG hold 90% of the investments and the Group
holds the balance.
The investment by the Modul Finance I EIG was financed as follows:
• Issue of Redeemable Subordinated Securities (TSR) for a total
of €10.5m, 90% of which were subscribed for by an institutional
investor and 10% by TOUAX SCA,
• Subscription of a senior debt of €32.6m repayable over 10
years at the 3-month Euribor + 1.8%.
Under an operational management contract the EIG commissioned
the Group to manage, lease out and in general operate
the modular buildings. As agent, the Group receives lease payments
from its customers, pays operating expenses directly to
suppliers, and arranges within ninety days of the end of each
quarter to pay the Net Distributable Leasing Income to the principal,
Modul Finance I EIG.
In 1999, Modul Finance I EIG renegotiated its debt in order to
receive more advantageous financial conditions. The operational
management contract with the Group was renewed for 13
years and six months. The following new commitments were
made by Modul Finance I EIG:
• Issue of Redeemable Subordinated Securities (TSR) for a total
of €4.5m, subscribed for in full by an institutional investor.
• Subscription of a senior debt of €28.2m repayable over 10.75
years with a residual value of €9.1m. Interest is paid on the
senior debt at the 3-month Euribor + 1.475%. The senior rate
guarantee undertaken by the Modul Finance I EIG and financed
by the senior loan sets the maximum reference rate for
the senior debt at 5%.
• Subscription of a junior debt of €8.9m repayable over 11.75
years with a residual value of €2.28m. Interest is paid on the
junior debt at the 3-month Euribor + 2.425%. The junior rate
guarantee undertaken by Modul Finance I EIG and financed
by the junior loan sets the maximum reference rate for the
junior debt at 5%.
• A deposit account of €0.8m was opened by TOUAX SCA.
• During 2006 the junior debt and the TSRs were bought by a
Luxembourg-registered company to which the Group lent
€2m to fund part of the purchase. This company does not
belong to the Group, and is not included in the scope of consolidation.
The €2m loan has been recognized as an asset in the
Group’s Balance Sheet.
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