XXI. Loans net of current portion

XXI. Loans net of current portion

The new consolidated entities contributed €82,883k. On a currency-adjusted basis the increase would have been €947,303k.
Most of the change concerns the acquisitions made during the year.
In particular, on 19 March 2008 Autogrill S.p.A. took out a new €1 billion credit facility, made up of:

  • A five-year term loan of €275m, to be reimbursed in full at maturity (19 March 2013).
  • A term loan of €600m (drawn down entirely in British pounds for £477.5m), due on 19 March 2013 and payable in three annual instalments of £79.6m starting in 2010, plus a final payment of £238.7m at maturity.
    Both of these loans, with consent from the lenders, might be extended by one year and then for a subsequent year. The financial market crisis and the substantial rise in margins on loans have made it impractical to extend the loans, which will therefore mature as originally planned.
  • A revolving credit facility of €125m, due on 19 March 2013.

Both of the term loans finance acquisitions and were fully drawn down during the year. In particular, the first was used to acquire 49.95% of Aldeasa and the second to acquire WDFE.
The revolving credit facility can be used to cover financial needs arising from the ordinary course of business, as well as acquisitions.
In addition to the above, non-current bank debt at 31 December 2008 is mostly made up of:

  • a €200m loan to be paid back in a single instalment in June 2015;
  • a loan with a remaining balance of €75m on the original €125m, taken out by Aldeasa in 2006 and being reimbursed through half-yearly payments of €12.5m until August 2011;
  • drawdowns on a revolving credit facility of €300m granted in 2005, to be paid back in a single instalment in June 2012;
  • British pound drawdowns on a revolving credit facility of €500m granted in May 2007, to be paid back in a single instalment by May 2014.

At 31 December 2008 the credit facilities maturing beyond one year had been drawn down by about 82.4%.
Adjustable interest is charged on all debt with banks. The average duration of bank loans, including unutilised credit lines, is about five years.
Long-term loan agreements require regular monitoring of financial ratios relating to debt coverage and interest coverage. Specifically, Aldeasa's loans include covenants referring exclusively to its own consolidated financial statements, whereby the leverage ratio (debt/EBITDA) must not exceed 3.5 and the interest coverage (EBITDA/financial expense) must not be lower than 3. The other contracts refer to the Autogrill Group as a whole and set a limit of 3.5 for the leverage ratio and at least 4.5 for interest coverage. Except for those taken out by Aldeasa, in the event of acquisitions, the loans allow the leverage ratio to exceed 3.5 but not 4 for three half-years (or six quarters), not necessarily in a row.

For the calculation of the leverage ratio and interest cover, net financial position, EBITDA and financial expense are measured according to definitions in the loan contracts and therefore differ from the amounts in the financial statements.
At 31 December 2008, as in all previous observation periods, these covenants were fully satisfied.