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- >Consolidated financial statements Geberit Group
- >Notes to the consolidated financial statements
- >Note 14
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
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
|Syndicated bank loan (term loan facility)||295.7||0.0|
|Credit facility (revolving facility)||0.0||0.0|
|Other long-term debt||8.4||6.6|
|Total long-term debt||1,135.5||6.6|
Geberit has the following three bonds outstanding: a bond for MCHF 150 (fair value as of 31 December 2015: MCHF 150.3) with a term of four years and a coupon of 0.05%, a bond for MCHF 150 (fair value as of 31 December 2015: MCHF 151.2) with a term of eight years and a coupon of 0.3%, and a bond for MEUR 500 (fair value as of 31 December 2015: MCHF 498.0) with a term of six years and a coupon of 0.688%.
Syndicated bank loan (term loan facility)
MEUR 325 of the syndicated bank loan (term loan facility) initially of MEUR 400 had been drawn down. The not required part of MEUR 75 was canceled in 2015. The term loan facility is used for medium-term financing and has a term of three years. Its variable interest rate is based on the LIBOR plus a margin that depends on the ratio of net debt to EBITDA. MEUR 50.0 were repaid early as of 17 November 2015 and MEUR 275.0 of the loan had been drawn on as of 31 December 2015. Its fair value of MCHF 297.6 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. 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 in 2015. A commitment fee is charged in respect of the portion not drawn down.
The syndicated bank loan and the credit facility 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
This ratio was 0.97x in the reporting period.
Other long-term debt
As of December 31, 2015, the Group had MCHF 8.4 of other long-term debt (PY: MCHF 6.6). This debt incurred an effective interest rate of 6.0% (PY: 6.0%).
Of the total long-term debt outstanding as of December 31, 2015, MCHF 839.1 was denominated in EUR (PY: MCHF 6.6) and MCHF 296.4 in CHF (PY: MCHF 0).