U.S.A., Inc. on December 5, 2005) that mature on
November 28, 2006 (swapped to USD liability of USD 296
million at a fixed interest rate of 7.152%), which we will
pay from our cash balances.
During 2005 we repaid the following indebtedness:
In February 2005 Schuitema repaid a EUR 35 million
installment of a EUR 135 million loan, and in June 2005
we early redeemed the remaining EUR 100 million.
Schuitema replaced this indebtedness with a facility from
a syndicate of banks, consisting of a EUR 100 million
loan that matures in March 2012 with an amortizing
principal through maturity, and revolving loan with a
capacity of EUR 75 million that matures in June 2010.
In June 2005 Ahold Finance USA repaid EUR 1,500
million notes.
In September 2005 we redeemed a CZK 3,000 million
(EUR 103 million) note.
In December 2005 we redeemed EUR 91 million notes.
Additionally on October 20, 2005 we announced the
successful close of solicitations of offers to sell up to
EUR 1,000 million equivalent of bonds in the bond buy
back offer launched on October 11, 2005 that resulted in
the following redemptions as of October 24, 2005:
GBP 250 million of the GBP 500 million notes with
original maturity of March 14, 2017.
EUR 193 million of the EUR 600 million notes with
original maturity of March 14, 2012.
EUR 437 million of the EUR 1,500 million notes with
original maturity of May 9, 2008.
For a detailed discussion of our debt, see Notes 26, 27, 28
and 30 to our consolidated financial statements included in
this annual report.
We have a Euro Medium Term Note ("EMTN") Program, of
which we had outstanding in aggregate of EUR 2.4 billion
in notes as of January 1, 2006. The notes have maturities
ranging from 2007 through 2031. Notes issued under the
EMTN program contain customary restrictive covenants,
including negative pledge covenants. We cannot issue any
additional debt under the EMTN Program until the program
documentation is updated.
Group credit facility
On February 15, 2005, we terminated the December 2003
Credit Facility, which had an original maturity date of
December 17, 2006. Stop Shop, one of our subsidiaries,
entered into the 2005 L/C Facility on the same day. The
2005 L/C Facility had an original maturity of June 30, 2005
and provided available capacity of up to USD 700 million in
letters of credit.
The letters of credit that were outstanding under the
December 2003 Credit Facility at the time of its termination
were transferred to the 2005 L/C Facility and were
collateralized through a cash deposit of USD 573 million
in the name of our subsidiary Stop Shop.
On May 17, 2005, we signed a new five-year EUR 2,000
million syndicated multi-currency unsecured credit facility,
which has more favorable terms and conditions compared to
the December 2003 Credit Facility. The May 2005 Credit
Facility provides for a sublimit for the issuance of letters of
credit up to USD 800 million. All aggregate outstanding
letters of credit under the 2005 L/C Facility were transferred
to the May 2005 Credit Facility prior to the termination of
the 2005 L/C Facility. Under the May 2005 Credit Facility,
we are subject to financial and other covenants, that include
maintaining a certain leverage ratio.
For a detailed discussion of the May 2005 Credit Facility,
see Note 26 to our consolidated financial statements
included in this annual report.
U.S. Foodservice securitization program
At the outset of 2005, U.S. Foodservice and certain of its
subsidiaries participated in separate accounts receivable
securitization programs. On May 6, 2005 these two
securitization programs were merged into one. Under the
program U.S. Foodservice and certain of its subsidiaries
sell, on a revolving basis, their eligible receivables to a
wholly-owned, special purpose, bankruptcy remote
subsidiary of U.S. Foodservice ("Receivables Company")
which in turn, transfers its rights in the receivables to a
special purpose entity (the "Master Trust") which then
issues certificates, representing interests in the accounts
receivable held in the name of the Master Trust, to third-
party investors. We consolidate the special purpose entity
and the receivables have not been derecognized from our
consolidated balance sheets. The maximum purchaser group
limit under the securitization program is USD 1,020 million
(EUR 861 million). The aggregate amount of outstanding
balances under the accounts receivable securitization
program was USD 620 million (EUR 524 million) and
USD 702 million (EUR 518 million), as of January 1, 2006
and January 2, 2005, respectively. The cost associated with
the sale of the interests in the receivables ranged from 2.4%
and 4.2% during 2005, plus fees and expenses. Under the
terms of the accounts receivables programs, these proceeds
are legally restricted to the Master Trust. As of January 1,
2006 and January 2, 2005, such restricted receivables
collection proceeds held by Ahold amounted to USD 122
million (EUR 103 million) and USD 93 million (EUR 79
million), which are included in cash and cash equivalents in
the balance sheets. The funds received from the Master
AHOLD ANNUAL REPORT 2005 77
