C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb
C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb
C Si Ni Cr V Ti Ta Sc Li Sr Zr Fe Cu Zn Sn B Al Ce U Mn Mo Nb Sb
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On May 27, 2010, the Company amended and restated<br />
the <strong>Cr</strong>edit Facility in order to adjust certain provisions<br />
for the strategic plans of the Company. Included in the<br />
amendments was a change to the Senior Net Debt to<br />
EBITDA covenant. Previously, the maximum ratio for<br />
this covenant was 2.00:1. The amendment increased the<br />
maximum ratio to 3.00:1. <strong>Fe</strong>es related to this amendment<br />
were $1,675 and are included in finance expense.<br />
Mandatory repayment of the credit facility is required<br />
upon the occurrence of (i) a change of control or (ii) the<br />
sale of all or substantially all of the business and/or<br />
assets of the Company whether in a single transaction or<br />
a series of related transactions.<br />
Debt issuance costs<br />
In connection with the term loan which commenced in<br />
2007, the Company incurred issuance costs of $9,405<br />
which were deducted from the proceeds of the debt from<br />
the term loan. These amounts are shown net against the<br />
outstanding term loan balance and are amortized using<br />
the effective interest method using a rate of 8.50%.<br />
The Company also has a Subordinated Loan Agreement<br />
with HSBC Trinkhaus & Burkhardt KGaA. The principal<br />
amount of the subordinated loan is $13,105 (2009:<br />
$14,082).The subordinated loan bears interest at 7.27%.<br />
A disagio of 4.0% was applied on the subordinated loan;<br />
therefore the effective rate of interest is 8.04%. The term<br />
of the subordinated loan is unlimited. The Agreement can<br />
be terminated no earlier than August 10, 2012.<br />
A German subsidiary maintains a loan agreement with<br />
Sparkasse Nuremberg which was originated on December 1,<br />
2003 and requires annual payments of approximately<br />
$123. This loan is secured by land and buildings.<br />
Graphit Kropfmühl (“GK”) debt<br />
A subsidiary of GK maintains a government subsidized<br />
loan agreement with Bayrische Landesbank and various<br />
other loan agreements with HypoVereinsbank, Unicredit<br />
and Sparkasse Passau. The loans carry various interest<br />
rates and were recognized by the Company upon the<br />
acquisition of GK. Those with floating interest rates have<br />
been fixed through interest rate swaps. See note 32. These<br />
loans are secured by GK’s property, plant and equipment.<br />
Capital leases<br />
As of December 31, 2010, AMG subsidiaries had three<br />
capital leases outstanding to finance machinery. <strong>Mo</strong>nthly<br />
payments under these three leases are $40. The leases<br />
mature in 2014 and 2015.<br />
On May 1, 2005, ALD entered into a 60 month capital lease<br />
for a software program. Annual payments under this<br />
lease are approximately $1. The lease expired during 2009.<br />
112 Notes to Consolidated Financial Statements<br />
There are no outstanding balances as of December 31,<br />
2010.<br />
Debt repayments<br />
The Company made capital lease and debt repayments of<br />
$3,432 during 2010. Payments included GK paying $2,703<br />
and GfE paying $579 to various banks and the remaining<br />
$150 relates to capital lease and other debt repayments.<br />
The Company made various capital lease and debt<br />
repayments of $15,785 during 2009. Of this amount,<br />
AMG repaid $12,000 on its Term Loan revolver, which it<br />
had previously borrowed in 2009, and GK made $2,639<br />
payments to various banks offset by additional borrowings<br />
in the amount of $6,013. The remaining $1,146 relates to<br />
various capital lease and other debt repayments.<br />
24. Short term bank debt<br />
The Company’s Brazilian subsidiary maintains short term<br />
secured and unsecured borrowing arrangements with<br />
various banks. Borrowings under these arrangements<br />
are included in short term debt on the consolidated<br />
statement of financial position and aggregated $30,565 at<br />
December 31, 2010 (2009: $20,981) at a weighted-average<br />
interest rate of 5.70%.<br />
GK maintains short term secured and unsecured credit<br />
facilities with various banks to fund short term operating<br />
activities and capital projects. This short term debt<br />
carries both floating and fixed interest rates. The balance<br />
of these facilities at December 31, 2010 was $14,421 (2009:<br />
$11,032) at a weighted-average interest rate of 3.75%.<br />
The Company’s French subsidiary had additional short<br />
term borrowings of $36 as of December 31, 2010.<br />
25. Employee benefits<br />
Defined contribution plans<br />
<strong>Ce</strong>rtain of the Company’s subsidiaries maintain US tax<br />
qualified defined contribution plans covering substantially<br />
all of the Company’s salaried and hourly employees at<br />
US subsidiaries. <strong>Al</strong>l contributions, including a portion<br />
that represents a company match, are made in cash into<br />
mutual fund accounts in accordance with the participants’<br />
investment elections. The assets of the plans are held<br />
separately from the assets of the subsidiaries under the<br />
control of trustees. Where employees leave the plans<br />
prior to vesting fully in the Company contributions, the<br />
contributions or fees payable by the Company are reduced<br />
by the forfeited contributions.<br />
In Europe, the employees are members of state-managed<br />
retirement benefit plans operated by the government.<br />
The subsidiaries are required to contribute a specified<br />
percentage of payroll costs to the retirement benefit<br />
scheme to fund the benefits. The only obligation of the
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