Notes to the Consolidated Financial Statements
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. Trade accounts receivable
7. Other current assets and current financial assets
8. Inventories
9. Property, plant and equipment
10. Other non-current assets and non-current financial assets
11. Goodwill and intangible assets
12. Short-term debt
13. Other current liabilities and provisions
14. Long-term debt
| 2016 | 2015 | |
|---|---|---|
| MCHF | MCHF | |
| Bonds | 829.5 | 831.4 |
| Syndicated bank loan (term loan facility) | 128.4 | 295.7 |
| Credit facility (revolving facility) | 0.0 | 0.0 |
| Other long-term debt | 8.8 | 8.4 |
| Total long-term debt | 966.7 | 1,135.5 |
| Short-term portion of long-term debt | 0.0 | 0.0 |
| Total long-term debt | 966.7 | 1,135.5 |
Bonds
Geberit has the following three bonds outstanding: a bond for MCHF 150 (fair value as of December 31, 2016: MCHF 150.8) with a term of four years and a coupon of 0.05% due 2019, a bond for MCHF 150 (fair value as of December 31, 2016: MCHF 152.6) with a term of eight years and a coupon of 0.3% due 2023, and a bond for MEUR 500 (fair value as of December 31, 2016: MEUR 513.1) with a term of six years and a coupon of 0.688% due 2021.
Syndicated bank loan (term loan facility)
The term loan facility is used for medium-term financing and has a term of three years due 2018. Its variable interest rate is based on the LIBOR plus a margin that depends on the ratio of net debt to EBITDA. MEUR 120 of the loan had been drawn as of December 31, 2016 (PY: MEUR 275). MEUR 155 was repaid in 2016. Its fair value of MEUR 120.1 was calculated by discounting all future cashflows at the current interest rate (swap rate for residual term plus credit spread).
Credit facility (revolving facility)
The firmly committed credit line (“revolving facility”) of MCHF 300 is intended to ensure the Group’s financial flexibility and has a term of five years due 2019. The interest rate is variable and is based on the LIBOR plus a fixed margin. An additional fee is charged if this credit line is drawn down. None of this credit facility was drawn down as of December 31, 2016. A commitment fee is charged in respect of the portion not drawn down.
The MEUR 500 bond, the syndicated bank loan and the credit facility are secured by guarantees from Geberit AG. The syndicated bank loan and the credit facility contain covenants and conditions typical for syndicated financing, including compliance with the following financial ratio:
- Net debt/EBITDA: max. 2.50x
This ratio was 0.59x in the reporting period.
Other long-term debt
As of December 31, 2016, the Group had MCHF 8.8 of other long-term debt (PY: MCHF 8.4). This debt incurred an effective interest rate of 5.9% (PY: 6.0%).
Currency mix
Of the total long-term debt outstanding as of December 31, 2016, MCHF 669.3 was denominated in EUR (PY: MCHF 839.1) and MCHF 297.4 in CHF (PY: MCHF 296.4).