Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 120Covenant ratios per 31 December can be specifi ed as follows:2010 2009ACTUAL REQUIRED ACTUAL REQUIREDLeverage ratio 2.27 < 3.70 1.96 < 3.80Interest coverage ratio 3.68 > 2.30 3.98 > 2.40Wavin is in compliance with the agreed ratios as defi ned in the Syndicated Loan Facility and expects to be compliant forthe upcoming year.The term loans are fully drawn and from the revolving facility € 53.0 million (2009: € 44.6 million) is drawn.Lenders have approved in addition to some specifi c indebtedness a threshold of € 130.0 million for permitted guarantees orindebtedness.In addition to the group facility, the Group has mostly uncommitted bilateral credit facilities with several banks for an amountof € 123.7 million (2009: € 68.1 million) of which € 19.2 million was drawn per 31 December 2010 (2009: € 17.4 million).In addition to the credit facilities Wavin has a € 25.0 million committed non-recourse factoring agreement in place of which€ 12.3 million was used as per 31 December 2010.The transaction costs related to the Syndicated Loan Facility of € 500 million and the Forward Start Facility of € 475 millionincluding the fee paid for the margin reduction as set out above are amortised using the effective interest method during theperiod of the borrowings. The transaction costs are mainly related to arrangement and underwriting fees, legal fees andconsultancy fees (due diligence, non-audit services, etc.).27. Employee benefits(€ x 1,000) 2010 2009Present value of unfunded obligations 12,602 12,033Present value of funded obligations 399,392 381,427Total present value of obligations 411,994 393,460Fair value of plan assets (417,803) (360,554)Unrecognised actuarial gains and (losses) 15,833 (19,409)Effect of asset ceiling 4,142 1,165Total employee benefits 14,166 14,662Non-current 13,647 12,048Current 519 2,614Unfunded obligationsUnfunded obligations consist of service awards and jubilee commitments qualifying as other long term benefi t plans,which are recognised in the Dutch, German, French, Irish, Polish, Italian and Turkish operating companies.Liability for defined benefit obligationsWavin has defi ned benefi t pension plans in Norway, Ireland, the UK, Germany, France, Italy and The Netherlands. All otherpension arrangements are defi ned contribution plans.In the UK and Ireland the pension liabilities are covered by company pension funds. The company is liable for the defi cits ofthese funds. Plan assets of these funds do not include investments in the Company. In 2010 the fi nal instalment was paid tosolve the defi cit in the pension fund of Wavin Ltd. which occurred as per September 2005. The related bank guarantee wascancelled.With the exception of EuroCeramic B.V. the pension liabilities of the Dutch Wavin entities are covered by a multi employerpension fund (Pensioenfonds OWASE). Although the Company is not liable for any defi cits in this fund the plan qualifi es as adefi ned benefi t plan as the Company might be entitled to a possible reward if the board of the pension fund would decide on