Wales & West Utilities Limited - Directors' report ... - Our Home Page

Notes to the financial statements11. BorrowingsGroupCompany2011 2010 2011 2010£m £m £m £mRepayable as follows:In more than one year but not more than two years 197.3 - 197.3 -In more than two years but not more than five years - 195.1 - 195.1In more than five years 953.3 946.6 - -1,150.6 1,141.7 197.3 195.1During the year ended 31 March 2010 the Group completed the refinancing of its bank borrowings. As partof that refinancing, the following borrowings were raised:(a) Wales & West Utilities Finance plc issued guaranteed bonds with a nominal value of £965.0m (2010:£965.0m) and a book value of £953.3m (2010: £946.6m). Included in the book value is £5.3m ofaccrued inflation on index linked bonds (2010: £nil). The guaranteed bonds have legal maturitiesranging between December 2016 and December 2036, as outlined in the following table, and are allrepayable in greater than 5 years.Nominalvalue Coupon Class Issue dateRedemptiondateBookvalue£250m 6.25% A 10 July 2009 2021 £246.7m£200m 5.125% A 2 December 2009 2016 £196.7m£300m 5.75% A 31 March 2010 2030 £292.7m£100m 2.496% Index linked A 31 March 2010 2035 £104.1m£115m 6.75%* B 31 March 2010 2018/2036* £113.1m£965m £953.3m* Legal maturity of the bond is 2036; however, the bond can be redeemed at the Group’s sole option in2018. If not redeemed in December 2018, the coupon for the bond increases to 3 month LIBOR +9.4%.All of the bonds are unconditionally and irrevocably guaranteed by the Company and its immediateparent, Wales & West Utilities Holdings Limited, pursuant to a guarantee and security agreement enteredinto over the entire property, assets, rights and undertakings of each guarantor, in the case of theCompany to the extent permitted by the Gas Act and its Gas Transportation Licence.(b) The Company entered into a £200m term loan with a book value at 31 March 2011 of £197.3m (2010:£195.1m) maturing in November 2012. The floating interest rate on this loan at 31 March 2011 wasLIBOR + 1.5 per cent (31 March 2010: LIBOR + 1.5 per cent). The £200m term loan was part of £380mof committed facilities raised as part of the refinancing (see note 13(e) below).Wales & West Utilities Limited30Registered number: 05046791