G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
29 Bank overdrafts, bank loans and loan notes continued
Analysis of bank overdrafts, bank loans and loan notes by currency:
Sterling
£m
Euros
£m
US dollars
£m
Bank overdrafts 21 24 – 8 53
Bank loans 419 205 263 45 932
Loan notes 419 – 761 – 1,180
At 31 December 2011 859 229 1,024 53 2,165
Bank overdrafts 15 1 – 29 45
Bank loans 258 256 147 26 687
Loan notes 419 – 734 – 1,153
At 31 December 2010 692 257 881 55 1,885
Others
£m
Total
£m
Of the borrowings in currencies other than sterling, £1,032m (2010: £951m) is designated as net investment hedge.
The weighted average interest rates on bank overdrafts, bank loans and loan notes at 31 December 2011 adjusted for hedging were as follows:
2011
%
2010
%
Bank overdrafts 1.2 1.5
Bank loans 2.4 3.0
Private loan notes 4.4 4.2
Public loan notes 7.8 7.8
The group’s committed bank borrowings comprise two multicurrency revolving credit facilities, a £1,100m facility with a maturity date of March 2016 and a
€575m (£480m) with a maturity date of June 2012 with the right to extend for a further six months at the group’s option. The group’s uncommitted bank
facilities amount to £706m (2010: £575m). At 31 December 2011, undrawn committed available facilities amounted to £767m (2010: £552m). Interest on all
committed bank borrowing facilities is at prevailing LIBOR or Euribor rates, dependent upon the period of drawdown, plus an agreed margin, and re-priced
within one year or less.
Borrowing at floating rates exposes the group to cash flow interest rate risk. The management of this risk is discussed in note 33.
The group issued fixed rate loan notes in the US Private Placement market totalling US$550m (£354m) on 1 March 2007. The notes mature in March 2014
($100m), March 2017 ($200m), March 2019 ($145m) and March 2022 ($105m).
The group issued further fixed rate loan notes in the US Private Placement market totalling US$514m (£331m) and £69m on 15 July 2008. The notes
mature in July 2013 ($65m), July 2015 ($150m), July 2016 (£25m), July 2018 ($224m) and (£44m), and July 2020 ($75m).
The group issued a public note of £350m using its European Medium Term Note Programme on 13 May 2009. The note matures in May 2019.
The committed bank facilities and the private loan notes are subject to one financial covenant (net debt to EBITDA ratio) and non-compliance with the
covenant may lead to an acceleration of maturity. The group complied with the financial covenant throughout the year to 31 December 2011 and the year
to 31 December 2010. The group has not defaulted on, or breached the terms of, any material loans during the year.
Bank overdrafts, bank loans, the loan notes issued in July 2008 and the loan notes issued in May 2009 are stated at amortised cost. The loan notes issued
in March 2007 are stated at amortised cost recalculated at an effective interest rate current at the balance sheet date as they are part of a fair value hedge
relationship. The directors believe the fair value of the group’s bank overdrafts, bank loans and the loan notes issued in March 2007, calculated from market
prices, approximates to their book value. US$265m (£171m) of the loan notes issued in July 2008 have a fair value market gain of £40m (2010: £39m)
resulting from the cross currency swaps fixing the GBP value of this portion of the loan notes at an exchange rate of 1.975.
G4S plc
Annual Report and Accounts 2011
105