Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Our Performance
20 Bank overdrafts and loans
2012
£000
2011
£000
Bank overdrafts – current liability – 1,549
Loan notes – current liability 1,228 1,617
Committed loan facility – current liability – 58,516
Committed loan facility – non-current liability 43,154 71,543
Total committed loan facility 43,154 130,059
Loan notes
Loan notes were issued in October and November 2006 to fund the purchase of Metal Bulletin plc. Interest is payable on these loan notes at a variable
rate of 0.75% below LIBOR, payable in June and December. Loan notes can be redeemed at the option of the loan note holder twice a year on the
interest payment dates above. At least 20 business days’ written notice prior to the redemption date is required. During the year ended September 30
2012 £386,000 (2011: £420,000) of these loan notes were redeemed.
Committed loan facility
The group’s debt is provided through a dedicated $300 million multi-currency borrowing facility from Daily Mail and General Trust plc (DMGT). The
facility is divided into US dollar and sterling funds and matures in December 2013. The total maximum borrowing capacity is $250 million (£155 million)
and £33 million. Interest is payable on this facility at a variable rate of between 1.4% and 3.0% above LIBOR dependent on the ratio of adjusted net
debt to EBITDA. The facility’s covenant requires the group’s net debt to be no more than four times adjusted EBITDA on a rolling 12 month basis. Failure
to do so would result in the group being in breach of the facility, potentially resulting in the facility being withdrawn or impediment of management
decision making by the lender. Management regularly monitor the covenant and prepare detailed debt forecasts to ensure that sufficient headroom
is available and that the covenants are not close or potentially close to breach. At September 30 2012, the group’s net debt to adjusted EBITDA
was 0.27 times.
Under the DMGT facility, at September 30 2012, the group had £144.7 million of undrawn but committed facilities available. In the absence of any
significant acquisitions, the group has no pressing requirement to arrange new finance before the facility expires in December 2013. In addition, the
group has agreed terms with DMGT that provide it with access to additional funding should the group require it during the period from December 2013
through April 2016. There is a risk that the undrawn portion of the facility, or that the additional funding, may be unavailable or withdrawn if DMGT
experience funding difficulties themselves. However, if DMGT were unable to fulfil its funding commitment to the group, the directors are confident
that the group would be in a position to secure adequate external facilities, although probably at a higher cost of funding.
Notes to the Consolidated Financial Statements
Company Accounts Group Accounts Our Governance
101