iesy Repository GmbH - Irish Stock Exchange

126
Payments due by period
(€’000s)
Less
than 1
Year 1-5 years
more
than 5
years
Liabilities to banks (1) — 583,273 —
Trade payables 11,535 — —
Capital lease liability (2) 8,346 40,383 332,350
Other liabilities 38,267 75,000 —
Total 58,148 698,656 332,350
(1) Upon completion of the ish Acquisition, on June 24, 2005, ish’s existing debt was repaid (iesy paid approximately
€585.3 million relating to ish’s bank loan (including accrued interest), approximately €100.3 million relating to notes
outstanding (including accrued interest) and approximately €6.7 million relating to swaps, offset by approximately
€97.0 million of cash on hand that ish used to repay, in part, its debt) and ish is expected to become a borrower under
the Senior Credit Facilities. See “The ish Acquisition” and “Unaudited Pro Forma Condensed Consolidated Financial
Statements of iesy” for further details.
(2) Following the completion of the ish Acquisition, it is anticipated that ish will account for its capital leases as operating
leases in accordance with iesy’s accounting policies. See “Unaudited Pro Forma Condensed Consolidated Financial
Statements of iesy” for further details.
Leasing and Rental Obligations
ish has entered into various license, rental and operating lease agreements. ish has also entered into the long term SLAs
with DTAG and its affiliates. These include usage and access agreements for underground cable ducts space, the use of fiber
optic transmission systems, tower and facility space. In general, these agreements primarily impose fixed prices for a limited
period of time, which may then be raised to reflect increased costs, subject to index-linked limitations. Some agreements
impose prices based on the cost to DTAG of services that are passed through to ish. ish has the ability to terminate these
agreements with notice periods of between 12 and 24 months. Furthermore, ish has entered into the long term BRN-ish
agreements under which it leases additional fiber optic lines. Except for SLAs with DTAG relating to access to underground
cable duct space, which are treated as capital leases, ish treats these leases as operating leases and expenses costs relating to
such leases as services are provided. See “Business—Business of ish—Supply—SLAs with DTAG.” See “Risk Factors—
Risks Relating to Our Indebtedness and Our Structure—Our high leverage and debt service obligations could materially
adversely affect our business, financial condition or results of operations” and “—Risks Relating to the Notes, the Subsidiary
Guarantees and the Security—We have not included IFRS or U.S. GAAP financial information in this Prospectus, and there
may be certain significant differences between our financial position and results of operations under German GAAP, IFRS or
U.S. GAAP.”
Copyright Agreements
See “—Other Operating Expenses—Copyright License Fees.”
Financial Debt
As of March 31, 2005, ish had existing debt of €692.7 million, including €583.3 million relating to ish’s bank loan,
€100.0 million relating to notes outstanding and approximately €9.4 million relating to swaps. Upon completion of the ish
Acquisition, this debt was repaid, and ish became a borrower under the Senior Credit Facilities. See “The ish Acquisition”
and “Unaudited Pro Forma Condensed Consolidated Financial Statements of iesy” for further details.
Other Liabilities
Other liabilities include €1.5 million which relates to accrued interest on loans due after the balance sheet date, as well
as €100.0 million relating to notes outstanding, and additional amounts relating to taxes and social security.
Deferred Income
Deferred income consists of €70.2 million prepayments received from customers for cable television services to be
provided after March 31, 2005.