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
| 2017 | 2016 | |
|---|---|---|
| MCHF | MCHF | |
| Bonds | 878.8 | 829.5 |
| Syndicated bank loan | 0.0 | 128.4 |
| Credit facility | 0.0 | 0.0 |
| Other long-term debt | 11.9 | 8.8 |
| Total long-term debt | 890.7 | 966.7 |
| Short-term portion of long-term debt | 0.0 | 0.0 |
| Total long-term debt | 890.7 | 966.7 |
Bonds
Geberit has the following three bonds outstanding: a bond for MCHF 150 (fair value as at 31 December 2017: MCHF 150.7) with a term of four years and a coupon of 0.05% due 2019, a bond for MCHF 150 (fair value as at 31 December 2017: MCHF 151.4) with a term of eight years and a coupon of 0.3% due 2023, and a bond for MEUR 500 (fair value as at 31 December 2017: MEUR 507.9) with a term of six years and a coupon of 0.688% due 2021.
Syndicated bank loan
The syndicated bank loan was used for medium-term financing and had a term of three years (due in 2018). Its variable interest rate was based on the LIBOR plus a margin that depends on the ratio of net debt to EBITDA. MEUR 0 of the loan had been drawn as at 31 December 2017 (PY: MEUR 120). MEUR 155 was repaid in 2016 and the term loan facility was repaid in full and cancelled on 11 September 2017.
Revolving credit facility
The revolving credit facility was a firmly committed credit line of MCHF 300 dating from October 2014 which was replaced by a new firmly committed credit line of MCHF 500 in November 2017. Like its predecessor, the new credit line also has a term of five years (due in 2022) as well as two renewal options of one additional year each. The interest rate continues to be 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 31 December 2017. A commitment fee – recorded as financial expenses – is charged in respect of the undrawn portion.
The MEUR 500 bond and the MCHF 500 credit facility are secured by guarantees from Geberit AG. The credit facility contains conditions typical for syndicated financing.
Other long-term debt
As at 31 December 2017, the Group had MCHF 11.9 of other long-term debt (PY: MCHF 8.8). This debt incurred an effective interest rate of 6.0% (PY: 5.9%).
Currency mix
Of the total long-term debt outstanding as at 31 December 2017, MCHF 592.3 was denominated in EUR (PY: MCHF 669.3) and MCHF 298.4 in CHF (PY: MCHF 297.4).