As at 30 September 2014, the Group had EUR217.9 million of
outstanding indebtedness with BREDS (2013: EUR229.7 million with
BOS). The Company's LTV (gross debt divided by market value of
properties) under the BREDS loan documentation at that date was
77.3% (2013: 70.6% with BOS), against a covenant of 85.0% (2013:
70.0% with BOS). The LTV is calculated based upon the market value
of the properties as at 30 September 2014.
Terms and debt repayment schedule
30 Sep 14 30 Sep 13
EUR000 EUR000
--------------------------------------------- ----------- ----------
Proceeds
Bank loans maturing between one to five 217,888 -
years
Bank loans maturing less than one year - 229,737
--------------------------------------------- ----------- ----------
Total proceeds from long term bank loans 217,888 229,737
--------------------------------------------- ----------- ----------
Transaction costs
Costs
Balance at the beginning of the year 7,186 7,535
Additions during the period 10,230 -
Retirements and amounts written off (8,705) (349)
--------------------------------------------- ----------- ----------
Gross transaction costs balance at the
end of the year 8,711 7,186
--------------------------------------------- ----------- ----------
Amortisation
Balance at the beginning of the year 7,079 6,585
Amortisation during the year 1,351 843
Retirements and amounts written off (7,186) (349)
--------------------------------------------- ----------- ----------
Accumulated amortisation balance at the
end of the year 1,244 7,079
--------------------------------------------- ----------- ----------
Net book value of transaction costs 7,467 107
--------------------------------------------- ----------- ----------
Net book value of proceeds from bank loans 210,421 229,630
Less current portion of bank loans - (229,630)
--------------------------------------------- ----------- ----------
Net book value of bank loans net of current 210,421 -
portion
--------------------------------------------- ----------- ----------
Transaction costs incurred in refinancing the above loans are
initially deducted from the loan balance and are being amortised
over the extended period of the loan. Amortisation of transaction
costs recognised as finance costs amounted to EUR1.4 million for
the year ended 30 September 2014 (2013: EUR0.8 million). Finance
costs include debt arrangement, structuring, utilisation fees and
exit fees paid in arranging the debt facility and the preference
shares. All transaction costs related to the old loan with BOS were
written off in full.
All borrowings are denominated in euro. The weighted average
interest rate at 30 September 2014 on the bank borrowings was
5.454% (2013: 2.726%). The loan is collateralised by all properties
of the portfolio included under "Investment property" and "assets
held for sale" accounts (see notes 12 and 30).
30 Sep 14 30 Sep 13
---------------- ------------ ---------------- ---------------- ---------- ------------ ---------- ------------
Currency Nominal Date of Face Carrying Face Carrying
interest maturity Value Amount Value Amount
Rate EUR000 EUR000 EUR000 EUR000
---------------- ------------ ---------------- ---------------- ---------- ------------ ---------- ------------
Bank of America 3M Euribor
Merrill Lynch Euro +2.40% 30/04/2017 100,000 100,000 - -
---------------- ------------ ---------------- ---------------- ---------- ------------ ---------- ------------
Islay
Investments 3M Euribor
S.à r.l. Euro +12.04426% 30/04/2017 117,888 117,888 - -
---------------- ------------ ---------------- ---------------- ---------- ------------ ---------- ------------
Bank of
Scotland
Secured bank 3M Euribor
loan Euro +2.50% 31/12/2013 - - 229,737 229,737
---------------- ------------ ---------------- ---------------- ---------- ------------ ---------- ------------
Total 217,888 217,888 229,737 229,737
------------------------------------------------ ---------------- ---------- ------------ ---------- ------------
22. Interest bearing loans and borrowings exit fee
The current facility agreement does not attract an exit fee. As
part of the previous facility agreement with Bank of Scotland there
was an exit fee payable. The fee was calculated as 2% of the
weighted average drawn balance during the period commencing on the
issuance date through the final repayment of the facility, 31
December 2013 (or repayment date if earlier). The quantum of this
exit fee was settled in full under the revised terms to the tune of
EUR5.9 million 30 April 2014.
Current liabilities Current liabilities
30 Sep 14 30 Sep 13
EUR000 EUR000
Interest bearing loan exit fee - 5,988
-------------------------------- --------------------- --------------------
On 30 December 2009 the Company issued 29,137,134 redeemable
preference shares with one warrant attached per preference share.
The preference shares confer the right to a cumulative preference
share dividend payable semi-annually. As the preference
shareholders have a right to receive a dividend and are redeemable,
they are treated as a financial liability.
In addition, on 30 December 2009, the Company issued 29,137,134
warrants whose option to exercise expired in November 2013.
30 Sep 30 Sep
14 13
EUR000 EUR000
------------------------------------------------ -------- --------
Preference shares at the beginning of the year 32,020 32,940
Transaction costs amortisation 328 328
Preference shares held in treasury - 189
Derecognition of repurchased preference shares (198) -
Foreign exchange difference 2,754 (1,437)
------------------------------------------------ -------- --------
Preference share value at the end of the year 34,904 32,020
------------------------------------------------ -------- --------
Costs
Transaction costs amortisation represents the amortisation of
the cost of raising preference share capital (7 years).
The holders of preference shares are entitled to receive a
preferential cumulative dividend of 9% per annum of the preference
share issue price of GBP1.00. The preference dividend is payable
semi-annually in June and December each year from 2010 to 2016
inclusive.
Under the terms of the new debt, a cash sweep will be applied to
the Company's income prior to the Step-Down Event (note 2.2). As a
consequence, no distributions to ordinary or preference
shareholders can be made for the duration of the cash sweep, with
the preference share dividend therefore being accrued. The Company
regards making the repayments necessary to eliminate the cash sweep
as an objective of the highest priority. The accrued amount of
preference share dividend as at 30 September 2014 was EUR2.5
million (note 26).
Preference shares held in treasury
In July 2012, the Company repurchased 800,000 of its own
preference shares, denominated in GBP, at a purchase price of 95
pence per preference share. The full amount of the share buy back
was derecognised against the Preference shares.
24. Warrants
On 30 December 2009 the Company issued 29,137,134 warrants. Each
warrant holder was entitled to exercise their subscription right in
cash on any subscription date falling in the years from 2010 to
2013 inclusive. The subscription date in any year was the last
business day in May and the last business day in November. The
subscription price was GBP0.29 per ordinary share. As the exercise
price for the warrants was set in sterling as opposed to the
functional currency of the Company, which is euro, the warrants
were treated as a financial liability. The entitlement to exercise
the subscription in cash expired in November 2013.
30 Sep 30 Sep
14 13
EUR000 EUR000
------------------------------------------------- -------- --------
Warrant fair value at the beginning of the year 176 219
Warrants exercised during the year (refer to
the statement of change in equity) - -
Fair value movement of the warrants (note 28.5) (176) (34)
Foreign exchange difference - (9)
------------------------------------------------- -------- --------
Invista Euro. (LSE:IERE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Invista Euro. (LSE:IERE)
Historical Stock Chart
From Jul 2023 to Jul 2024