4.78 MB - Perth Airport

(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