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- >Note 15
1. Basic information and principles of the report
2. Changes in Group structure
3. Summary of significant accounting policies
4. Risk assessment and management
5. Management of capital
6. Marketable securities
7. Trade accounts receivable
8. Other current assets and current financial assets
9. Inventories
10. Property, plant and equipment
11. Other non-current assets and non-current financial assets
12. Goodwill and intangible assets
13. Short-term debt
14. Other current provisions and liabilities
15. Long-term debt
| 2014 | 2013 | |
|---|---|---|
| MCHF | MCHF | |
| Credit facilities | 0.0 | 0.0 |
| Other long-term debt | 6.6 | 7.7 |
| Total long-term debt | 6.6 | 7.7 |
Credit facilities
On October 14, 2014, various credit facilities were made available to the Group by J. P. Morgan for the purposes of financing the acquisition of Sanitec (see Note 32) and ensuring the Group’s financial flexibility. These credit facilities were syndicated to a group of 10 banks as at November 19, 2014. At the same time the Revolving Facility was added. These credit facilities consist of a tranche A (“Bridge Facility”), a tranche B (“Term Loan Facility”) and a firmly committed credit line (“Revolving Facility”). In 2014, no drawdown of these credit facilities took place.
The tranche A (“Bridge Facility”) of MCHF 900 represents bridge financing and is to be replaced by the issuing of bonds or other debt at a later date. This facility is available to the Group for 12 months, with the option of extending it twice for a period of six months each. The interest rate is variable and is based on the LIBOR rate plus a margin which increases over the term of the facility.
The tranche B (“Term Loan Facility”) of MEUR 400 is used for medium-term financing. This facility has a term of three years. The interest rate is variable and is based on the LIBOR rate plus a margin that is dependent on the net debt to EBITDA ratio.
The firmly committed credit line (“Revolving Facility”) of around MCHF 300 is intended to ensure the Group’s financial flexibility and replaces the existing credit line (“Revolving Facility”) of MCHF 150. The new credit line has a term of five years. The interest rate is variable and is based on the LIBOR rate plus a fixed margin. An additional fee is charged if this credit line is drawn down. Standard commitment fees are due for all credit facilities.
The credit facilities are secured by guarantees from Geberit AG and contain covenants and conditions typical for syndicated financing, including compliance with the following financial ratio:
- Net debt/EBITDA: max. 2.50x
Other long-term debt
As of December 31, 2014, the Group had MCHF 6.6 of other long-term debt (PY: MCHF 7.7). This debt incurred an effective interest rate of 6.0% (PY: 6.0%).
Currency mix
Of the long-term debt outstanding as of December 31, 2014, MCHF 6.6 was denominated in EUR (PY: CHF 7.7).