Boskalis_Annual Report_2017

106 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 106 23.6.5 OTHER RESERVES Current Non-current Balance as at 1 January Movement Assumed in business combinations Repayment Currency results Other movements Total movements Balance as at 31 December Current Non-current Balance as at 31 December

Other reserves mainly comprise actuarial movements related to the limitation on net plan assets of defined benefit pension plans and the actuarial gains and losses originating from the difference between the realized and the expected movement in defined benefit obligations and the return on plan assets.

24. INTEREST-BEARING BORROWINGS

REVOLVING MULTI- CURRENCY CREDIT FACILITY

OTHER INTEREST- BEARING BORROWINGS TOTAL 2017

US PRIVATE PLACEMENTS

TOTAL 2016

452,851 306,876 759,727

- - -

293

453,144 308,287 761,431

18,127 914,234 932,361

1,411 1,704

-

- - - - - - - - -

17,381 - 17,619

17,381

-

- 445,751 - 45,103

- 463,370 - 45,103

- 197,874

- -

19,144

525

525

7,800

- 490,329 269,398

- 238 1,466

- 490,567 270,864

- 170,930 761,431

-

297

297

453,144 308,287 761,431

269,398 269,398

1,169 1,466

270,567 270,864

As at year-end 2017 US private placements relate to one placement of EUR 269.4 million, calculated at year-end currency rates (year-end 2016: two placements totaling EUR 759.7 million).

As at year-end 2017 remaining US private placements with a nominal value of USD 325 million were placed with institutional investors in July 2013. The principal of this placement will be repaid after the original duration of ten years. The annual interest rate is 3.66%. The repaid US private placements concern a US private placement of USD 433 million and GBP 11 million with institutional investors in the United States and the United Kingdom issued in July 2010. The placement consisted of three tranches with an original duration of 7, 10 and 12 years, respectively. In December 2016 the Group informed the noteholders about early repayment and consequently both the loan and the accrued liabilities including the make-whole payments due to noteholders (see note 11 ‘Finance income and expenses’) were accounted for as interest-bearing borrowings under current liabilities. The US dollar and Pound Sterling proceeds from this US private placement had been swapped into euros through cross- currency swaps, for a total amount of EUR 354 million. The fixed interest rate amounted to 4.76%. As a result of early repayment, these cross-currency interest rate swaps no longer qualified for hedge accounting and the fair value has been accounted for in the 2016 Statement of Profit or Loss (see note 11 ‘Finance income and expenses’). The cash settlement of these cross-currency interest rate swaps resulted in a cash inflow of EUR 52.5 million in 2017. A revolving multi-currency credit facility agreed with a bank syndicate was arranged for the Group in 2014 and amounts to EUR 600 million. This credit facility had an original duration of 5 years with two options, executed in 2015 and 2016, respectively and has therefore been extended to 2021. The Group did not draw on this credit facility in 2017 and 2016. The Group agreed to comply with a number of customary covenants with the bank syndicate and US private placement holders. Twice a year Boskalis provides a compliance certificate to these lenders, reporting on the covenants for the twelve-month period ending on 30 June and 31 December, respectively. The main financial covenants are a net debt / EBITDA ratio not exceeding 3 and an EBITDA / net interest ratio of at least 4. These covenants are calculated in accordance with definitions agreed with the lenders. Interest bearing borrowings of Gardline (see note 5.1) were repaid in August 2017.

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