Bradken Limited Annual Report 2015 - page 106

71 l BRADKEN LIMITED ANNUAL REPORT 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
30 June 2015
(continued)
20 Borrowings (continued)
(d)
2015
2014
$'000
$'000
Credit standby arrangements
Total facilities
Bank overdrafts
16,108
41,608
Standby letters of credit and bank guarantees
105,758
118,053
121,866
159,661
Used at balance date
Bank overdrafts
188
-
Standby letters of credit and bank guarantees
78,514
57,596
78,702
57,596
Unused at balance date
Bank overdrafts
15,920
41,608
Standby letters of credit and bank guarantees
27,244
60,457
43,164
102,065
Bank loan facilities
Total facilities
661,646
565,226
Used at balance date
352,599
301,310
Unused at balance date
309,047
263,916
US private placement notes
Total facilities
259,235
212,157
Used at balance date
259,235
212,157
Unused at balance date
-
-
(i)
(ii)
(iii)
During the year drawings under a GBP 20,000,000 facility were repaid and the facility subsequently cancelled.
a USD 31 million multi-currency revolving credit facility. Current interest rate is 6.00% (2014: 4.43%)
Financing arrangements
Unrestricted access was available at balance date to the following lines of credit:
Working capital facilities comprise bank overdraft facilities and bank guarantee and letter of credit lines. Bank overdraft facilities
comprise a AUD 15,000,000 bilateral overdraft facility, a GBP 500,000 multi currency overdraft facility and a NZD 100,000
overdraft facility.
Bank guarantees and letters of credit facilities comprise a AUD 102,250,000 multicurrency revolving bank guarantee facility, a
GBP 500,000 bank guarantee facility, a NZD 50,000 bank guarantee facility, a CAD 500,000 standby letter of credit facility, a
MYR 2,000,000 bank guarantee facility and bank guarantee and letter of credit lines made available under revolving loan facilities
in China (total drawings A$1.2m at 30 June 2015).
On 30 June 2015, the Group entered into a Redeemable Preference Share (“RPS”) agreement for cash consideration of
$70,000,000. 700,000 RPSs were issued with a face value of $100 per share and have no fixed maturity date. Each RPS
confers on its holder the right to semi-annual distributions at step up rate of 7.5% for the first year and up to 13% to year 5, which
at the election of the Group, can be waived in the first 12 months through the issuance of additional RPS instruments at an
increased distribution rate of 8%.
The RPS holders have an option to convert the RPS for ordinary shares in Bradken at a conversion price of $2 per share. This
price is adjusted should certain events occur. The Group can elect to redeem the shares by way of a cash payment after 5
years, or if specified conditions are met at an earlier date.
At the date of the issuance, which is concurrent with the reporting date, the instrument has been split between long term debt and
derivative financial liabilities. $63,700,000 has been treated as debt, being a financial liability at amortised cost. This figure is net
of $2,100,000 in borrowing costs. In addition, the option to convert the RPS into ordinary shares has been treated as a financial
instrument measured at fair value through profit or loss at $4,200,000. Please refer to note 13 for valuation details of the
derivative component of this instrument.
Bank loan facilities comprise the following:
US Private Placement Notes comprise a 7 year USD 50,000,000 tranche, 10 year USD 100,000,000 tranche and 12 year USD
50,000,000 tranche. Current weighted average interest rate is 4.64% (2014: 4.64%).
a syndicated loan with three, four and five year revolving bullet term loan facilities. The facilities comprise of AUD
440,000,000 multicurrency tranches and USD 100,000,000 tranches. Current interest rate is 3.71% (2014: 3.84%).
a USD 40 million multi-currency revolving credit facility. Current interest rate is 5.08% (2014: 4.43%)
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