sain t-gobain annu al report 2008 annual report

The acceleration clause in the syndicated facility agreement
would be triggered in the following cases:
Failure to comply with either of the following ratios
(assessed every six months on a consolidated basis):
– Ratio of net debt to operating income excluding depreciation
and amortization of property, plant and equipment and
intangible assets below 3.75.
– Interest cover (EBITA/net borrowing costs) above 3.5.
Default on bank borrowings in excess of €40 million.
Saint-Gobain complied with all of these covenants at
December 31, 2008.
In October 2007, the Company obtained a €2,125 million
syndicated credit facility to finance the Maxit acquisition.
The facility included a tranche with a one-year rollover option.
This facility was drawn down in full in March 2008. In October
2008, an addendum to the facility agreement was signed,
pushing back the expiry date to October 2010 and reducing
the amount to €2,040 million. At December 31, 2008,
this amount was fully drawn down.
NOTE 13
Related party transactions
Net amount
concerning
Related Other Other
(in € thousands) companies investees companies
Investments in subsidiaries and affiliates 9,067,000 258 9,067,258
Loans and advances to subsidiaries and affiliates 12,666,808 209 12,667,017
Other investment securities 127,182 220 127,402
Loans 978,837 4,497 17,039 1,000,373
Other receivables 3,309,799 160 74,307 3,384,266
Marketable securities 9,972 1,214,578 1,224,550
Cash and cash equivalents 28,642 28,642
Bonds 6,258,699 6,258,699
Bank borrowings 2,292,346 2,292,346
Other borrowings 6,438,697 735,428 7,174,125
Other payables 21,853 3,443 49,379 74,675
Income from investments in subsidiaries and affiliates 985,508 96 21 985,625
Income from loans and other investments 835,817 59 835,876
Other interest income 13,625 140,469 154,094
Interest expense 266,183 124 622,778 889,085
Total
NOTES THE PARENT COMPANY FINANCIAL STATMENTS
205
Saint-Gobain – Financial Report 2008