Annual Report - Campus Living Villages

Campus Living Villages Annual Report 09/10 3 7
Campus Living Villages Fund
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
A$’000
19. Borrowings
a) Borrowings are classified into current and non-current borrowings as follows:
FUND
June 2010 June 2009
Loans from financial institutions 228,164 72,368
Lease liabilities 597 515
Total current borrowings 228,761 72,883
Loans from financial institutions 606,019 733,445
Lease liabilities 21,685 21,969
Total non-current borrowings 627,704 755,414
Total borrowings 856,465 828,297
The sum of the carrying amount of borrowings and the interest rate swap asset and liabilities approximate the fair value of
the borrowings.
The non-current loans from financial institutions includes the second lien of the RBS borrowings of $23.5m (US$20m) which is
due to be repaid in April 2014. This is likely to be repaid at the same time as the refinancing of the first lien of $213m (US$181m)
which is noted in the Directors’ Report and note 32 to the financial statements. Consent of the second lien lenders is required
to leave the $23.5m loan in place.
b) Borrowings are classified as secured and unsecured as follows:
June 2010 June 2009
Secured borrowings
Loans from financial institutions 834,183 805,813
Lease liabilities 22,282 22,484
Total borrowings 856,465 828,297
c) Assets pledged as security
The loans, from financial institutions have been financed with limited recourse debt. The package of securities normally
provided is as follows:
> > A first ranking all assets fixed and floating charge granted by the Borrower in favour of the financial institution;
> > A first ranking mortgage of the lease from the university to the Borrower; and
> > A first ranking share mortgage granted by the Parent of the Borrower in relation to all shares held by the Parent in
the Borrower.