2009 Annual Report - CRH

23. Interest-bearing Loans and Borrowings continued
Borrowing facilities
The Group manages its borrowing ability by entering into committed borrowing agreements. Revolving committed bank
facilities are generally available to the Group for periods of up to five years from the date of inception. The undrawn
committed facilities available as at 31st December 2009 and 31st December 2008, in respect of which all conditions
precedent had been met, mature as follows:
96 CRH
2009 2008
€m €m
Within one year 203 589
Between one and two years 391 519
Between two and three years 782 160
Between three and four years 164 196
Between four and five years 3 53
After five years 26 49
1,569 1,566
Included in the figures above is an amount of €189 million in respect of the Group’s share of facilities available to joint
ventures (2008: €304 million).
Guarantees
The Company has given letters of guarantee to secure obligations of subsidiary undertakings as follows: €5,098 million in
respect of loans, bank advances, derivative obligations and future lease obligations (2008: €7,051 million), €6 million in
respect of deferred and contingent acquisition consideration (2008: €7 million), €319 million in respect of letters of credit
(2008: €419 million) and €43 million in respect of other obligations (2008: €43 million).
Pursuant to the provisions of Section 17, Companies (Amendment) Act, 1986, the Company has guaranteed the liabilities
of its wholly-owned subsidiary undertakings and the Oldcastle Finance Company and Oldcastle North America Funding
Company general partnerships in the Republic of Ireland for the financial year ended 31st December 2009 and, as a result,
such subsidiary undertakings and the general partnerships have been exempted from the filing provisions of Section 7,
Companies (Amendment) Act, 1986 and Regulation 20 of the European Communities (Accounts Regulations), 1993
respectively.
The Company has not guaranteed any debt or other obligations of joint ventures or associates.
Lender covenants
The Group’s major bank facilities and debt issued pursuant to Note Purchase Agreements in private placements require the
Group to maintain certain financial covenants. Non-compliance with financial covenants would give the relevant lenders the
right to terminate facilities and demand early repayment of any sums drawn thereunder thus altering the maturity profile of
the Group’s debt and the Group’s liquidity. Calculations for financial covenants are completed for twelve-month periods
ending quarterly on 31st March, 30th June, 30th September and 31st December. CRH was in full compliance with its
financial covenants throughout each of the periods presented. The Group is not aware of any stated events of default.
The financial covenants are:
(1) Minimum interest cover (excluding share of joint ventures) defined as EBITDA/net interest cover at no lower than 4.5
times. As at 31st December 2009 the ratio was 6.1 times (2008: 7.4 times);
(2) Minimum interest cover (excluding share of joint ventures) defined as EBITDA plus rentals/net interest plus rentals at
no lower than 3.0 times. As at 31st December 2009 the ratio was 3.8 times (2008: 4.8 times);
(3) Maximum debt cover (excluding share of joint ventures) defined as consolidated total net debt/EBITDA (taking into
account proforma adjustments for acquisitions and disposals) at no higher than 3.5 times. As at 31st December 2009
the ratio was 2.2 times (2008: 2.4 times).