Trust Recovery Growth Vitalization - Marubeni

Notes to Consolidated Financial Statements
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
1.32% notes due 2012 ................................................................................................. ¥ 10,000 ¥ – $ 93,458
1.38% notes due 2012 ................................................................................................. 10,000 – 93,458
1.37% notes due 2015 with prepayment options ........................................................ 5,000 – 46,729
0.85% convertible debentures due 2006 ......................................................................
Medium-term notes due from 2004 to 2007 principally at rates from
64,500 64,500 602,804
0.5% to 4.6% or at floating rates ................................................................................
Loans from government-owned banks and government agencies:
13,572 21,828 126,841
Secured, due serially through 2016 principally at rates from 0.2% to 6.7% ............. 12,922 60,049 120,766
Unsecured, due serially through 2016 principally at rates from 0.9% to 5.6% ........
Loans principally from banks and insurance companies:
95,524 54,511 892,748
Secured, due serially through 2018 principally at rates from 0.5% to 12.6% ........... 186,027 119,875 1,738,570
Unsecured, due serially through 2014 principally at rates from 0.2% to 8.0% ........ 1,313,785 1,427,061 12,278,364
Other ............................................................................................................................. 187,380 174,189 1,751,214
.......................................................................................................................... 2,128,223 2,151,289 19,889,935
Less current portion .................................................................................................. 314,501 328,816 2,939,262
To hedge against exposure related to the payment of interest and
the repayment of the principal of certain short-term loans and longterm
debt denominated in foreign currencies, the Company and
certain of its subsidiaries enter into foreign exchange contracts.
To strengthen the asset liability management and to hedge against
exposure to changes in foreign currency exchange rates, the Company
and certain of its subsidiaries entered into several interest rate swap
agreements, including interest rate and currency swap agreements.
The floating interest rates are, in general, based upon the six-month or
three-month LIBOR (London Interbank Offered Rate). The interest rate
swap agreements are to remain in effect through the maturity dates of
the short-term loans and long-term debt.
The indentures covering the 0.85% convertible debentures due
2006 issued in November 1996 provide that (1) the holders may
convert the debentures into shares of common stock at the
conversion price of ¥539 ($5.0), and (2) the debentures are redeemable
at the option of the Company at price of 100% of the principal
amounts after March 31, 2005.
¥1,813,722 ¥1,822,473 $16,950,673
The Company had an unused long-term line of credit arrangement
of ¥200,000 million ($1,869,159 thousand) with a syndicate of
financial institutions and unused long-term refinance arrangements of
¥100,786 million ($941,925 thousand) with certain financial institutions
at March 31, 2005. Of such arrangements, ¥259,591 million
($2,426,084 thousand) was utilized to reclassify short-term loans and
long-term debt due within one year to long-term debt on the
consolidated balance sheet at March 31, 2005, as the Company had
an intention and ability to refinance them when due. The Company
had an unused long-term line of credit of ¥152,000 million and
reclassified short-term loans and long-term debt due within one year
to long-term debt of ¥119,679 million on the consolidated balance
sheet at March 31, 2004.
In addition to the above, the Company and certain of its subsidiaries
have unused short-term lines of credit of ¥215,000 million
($2,009,346 thousand) and $415 million at March 31, 2005.
Long-term debt subsequent to March 31, 2005 matures as follows:
Thousands of
Year ending March 31 Millions of yen U.S. dollars
2006 ..................................................................................................................................................... ¥314,501 $2,939,262
2007 ..................................................................................................................................................... 404,878 3,783,907
2008 ..................................................................................................................................................... 479,744 4,483,589
2009 ..................................................................................................................................................... 173,220 1,618,879
2010 ..................................................................................................................................................... 212,095 1,982,196
Thereafter ............................................................................................................................................ 543,785 5,082,102
Certain agreements principally with Government-owned financial
institutions provide that earlier repayment may be required if, in the
judgment of the lenders, the Company or certain of its subsidiaries
have achieved higher than expected earnings or received sufficient
proceeds from the issuance of common stock or debentures to repay
its loans. To date, none of the lenders has made such a request.
Certain of the long-term debt agreements stipulate, among other
things, that the Companies, upon request, submit for the lenders’
approval the proposed appropriations of income, including dividends,
before such appropriations can be submitted to the shareholders.
The Companies have never received such a request.