4.78 MB - Perth Airport

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NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2005 (CONTINUED) Consolidated Parent Notes 2005 2004 2005 2004 $’000 $’000 $’000 $’000 NOTE 14. CURRENT INTEREST BEARING LIABILITIES Secured Bank loans (a) 2,050 1,000 2,050 1,000 (a) Further information relating to bank loans is set out in note 17 (a). NOTE 15. CURRENT PROVISIONS Onerous contracts (a) 1,184 - 1,184 - Annual leave 1,115 1,003 1,115 1,003 Long service leave 1,575 1,494 1,575 1,494 (a) Further information relating to onerous contracts is set out in note 18 (a). 3,874 2,497 3,874 2,497 NOTE 16. CURRENT OTHER LIABILITIES Foreign currency hedge liability 2,112 761 2,112 761 NOTE 17. NON-CURRENT INTEREST BEARING LIABILITIES Secured Bank loans (a) 19,425 5,800 19,425 5,800 AUD Bonds (b) 199,486 188,390 199,486 188,390 USD Bonds (c) 196,412 217,265 196,412 217,265 415,323 411,455 415,323 411,455 Unsecured Subordinated shareholder loans (d) 192,473 198,250 192,473 198,250 192,473 198,250 192,473 198,250 607,796 609,705 607,796 609,705 Terms and conditions (a) Bank loans represent drawings on the Standby Letter of Credit Facility and the Capital Expenditure Facility. The Capital Expenditure Facility is an interest only facility with the principal payable on maturity on 4 March 2008. Interest on the letter of credit facility is payable quarterly, with quarterly fixed principal repayments over a term of 4 years from drawdown. (b) Fixed/floating AUD bonds have a period to maturity of 20 years ending 1 July 2017. Over the course of the first 11 years a fixed coupon of 4% per annum is payable to the bondholders. A separate capitalising component currently set at 5.78% per annum applies during this period. A floating interest component applies from the 11th year replacing the fixed/floating structure. The cumulative outstanding principal of the bond is repayable in full at maturity. (c) USD Bonds have a period to maturity of 12 years ending 1 April 2010. The bonds pay a fixed coupon of 6.48% per annum, payable semiannually. Primary issue of the bonds raised US$150 million. At issue of the bonds, the consolidated entity entered into a cross-currency foreign currency swap effectively hedging all USD foreign exchange and interest rate risks associated with the bond’s coupon payments and principal repayment at maturity. The bank debt and both bond facilities are fully secured over all the assets of WAC, including a mortgage over the consolidated entity’s interest under the <strong>Perth</strong> <strong>Airport</strong> lease. In addition, Airstralia Development Group Pty Ltd (ADG) has guaranteed repayment of the outstanding indebtedness by providing a charge over its shares in WAC. 24
(d) On 7 March 2003 the parent entity ADG issued $45,000,000 of convertible notes. In September 2004 ADG issued an additional 20,000,000 convertible notes on a pro-rata basis to existing noteholders. The notes have a face value of $1.00 each, but were issued at a price of $1.066, yielding net proceeds of $21.32 million. The notes are convertible to equity securities at any time after a public announcement of the listing of equity securities of the company or the parent entity. The conversion number of shares will be determined by dividing the amount owing with respect to the notes by the conversion price. The conversion price is 95% of the volume weighted average price of the securities under an initial public offer or the trading price over a period of 20 business days. ADG advanced the proceeds of these notes to WAC on the same date as a subordinated shareholder loan on the same terms. The terms and conditions of the consolidated entity’s financing arrangements provide for the subordination of payment obligations to the unsecured debt holders for such time as any secured money remains owing to the banks and bondholders. Further details with respect to the provider of subordinated debt are set out in note 29. Consolidated Parent Notes 2005 2004 2005 2004 $’000 $’000 $’000 $’000 Financing Arrangements Total facilities available Stand-by Letter of Credit 16,200 16,200 16,200 16,200 Bank overdrafts 10,000 10,000 10,000 10,000 Capital expenditure facility 50,000 50,000 50,000 50,000 76,200 76,200 76,200 76,200 Used at balance date Stand-by Letter of Credit 8,200 4,000 8,200 4,000 Bank overdrafts - - - - Capital expenditure facility 15,300 3,300 15,300 3,300 23,500 7,300 23,500 7,300 Unused at balance date Stand-by Letter of Credit 8,000 12,200 8,000 12,200 Bank overdrafts 10,000 10,000 10,000 10,000 Capital expenditure facility 34,700 46,700 34,700 46,700 52,700 68,900 52,700 68,900 The unused Stand-by Letter of Credit provides standby debt service liquidity for the quarterly debt service obligations under the financing documents, and standby funding for the deferred settlement payments. The part of the facility which relates to the deferred settlement payments expires from the last drawdown date of 15 September 2004. The component of the facility which relates to the quarterly debt service obligations expires on 7 March 2008. The unused bank overdraft provides assistance in the day to day management of working capital requirements. The availability of the facility is reviewed on an annual basis. The capital expenditure facility is available for the purpose of funding approved capital expenditure subject to certain approvals. The facility expires on 7 March 2008. NOTE 18. NON-CURRENT PROVISIONS Onerous Contracts (a) 4,841 - 4,841 - Long service leave 169 211 169 211 5,010 211 5,010 211 (a) At 30 June 2005 WAC recognised an onerous contract for the present value of the future payments required under the technical services agreement to the Port of Portland (note 29). A pre-tax, nominal weighted average cost of capital was used to determine the discount rate in calculation of the present value. 25
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PERTH AIRPORT 2004/2005 ANNUAL REPO
Page 3 and 4:
CONTENTS Chairman’s Review 2 CEO
Page 5 and 6:
During the year, WAC undertook the
Page 7:
An agreement with Conservation Volu
Page 11 and 12:
ABOUT ABOUT PERTH AIRPORT Strategic
Page 13 and 14:
Mr Peter Taylor Mr Ron Doubikin Mr
Page 15 and 16: HIGHLIGHTS HIGHLIGHTS 2004/2005 Pro
Page 17 and 18: TOTAL BREAK-UP IN DOMESTIC AND INTE
Page 19: FINANCIAL STATISTICS 2004/2005 FIVE
Page 23: CASHFLOW CASHFLOW SUMMARY CASHFLOW
Page 27: COMMUNITY SUPPORT Many community gr
Page 31: INVESTMENT IN INFRASTRUCTURE Westra
Page 35: RETAIL & GROUND TRANSPORT REVENUE G
Page 39: ENVIRONMENT ENVIRONMENT STRATEGY On
Page 42 and 43: PERTH AIRPORT 2004/2005 FINANCIAL R
Page 44 and 45: REPORT DIRECTORS’ REPORT Your dir
Page 46 and 47: SECURITY MANAGEMENT The company is
Page 48 and 49: CORPORATE GOVERNANCE STATEMENT The
Page 50 and 51: STATEMENT OF FINANCIAL PERFORMANCE
Page 52 and 53: STATEMENT OF CASH FLOWS FOR THE FIN
Page 54 and 55: NOTES TO THE FINANCIAL STATEMENTS 3
Page 80 and 81: INDEPENDENT AUDIT REPORT TO MEMBERS
Page 82 and 83: REVIEW REVIEW OF OPERATIONS For the
Page 84: Westralia Airports Corporation Pty
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