21 Loans and credit facilities
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Ahold Annual Report 2012 108
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
The notes in the table below were issued by Ahold or one of its subsidiaries, the latter of which are guaranteed by Ahold unless otherwise noted. All related swap contracts have the same
maturity as the underlying debt unless otherwise noted.
Current
Non-current portion
Total
Current
Non-current portion
Total
portion
portion
within
Between
After
December 30,
within
Between
After
January 1,
million
1 year
1 to 5 years
5 years
2012
1 year
1 to 5 years
5 years
2012
Notional redemption amounts
EUR 600 notes 5.875%, due March 20121
407
407
GBP 500 notes 6.50%, due March 20172
290
290
280
280
USD 94 indebtedness 7.82%, due January 20203
6
29
13
48
5
27
22
54
USD 71 indebtedness 8.62%, due January 2025
54
54
55
55
USD 500 notes 6.875%, due May 2029
378
378
386
386
JPY 33,000 notes LIBOR plus 1.5%, due May 20314
290
290
331
331
Deferred financing costs
(1)
(3)
(4)
(2)
(2)
(4)
Total notes
6
318
732
1,056
412
25
1,072
1,509
Other loans
2
3
5
1
2
3
Financing obligations5
13
63
305
381
13
65
321
399
Mortgages payable6
3
2
6
11
3
4
7
Total loans
22
385
1,046
1,453
429
96
1,393
1,918
1 Notes were swapped to the U.S. dollar at an interest rale of 6.835%. During 2005, Ahold bought back a part of the notes with a principal amount of €193 million and terminated a notional portion of the corresponding swap in the same amount.
2 During 2005 Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million 306 million) has been netted with €16 million as per December 30, 2012, (January 1, 2012: €20 million) representing
an amount, which is amortized over the remaining terms of the notes, that relates to a hedging instrument that stopped qualifying for fair value hedge accounting. The remaining notional amount of GBP 250 million was, through Iwo swap contracts,
swapped to $356 million and carries a six-month floating U.S. dollar interest rate (see Note 30 for additional information). Ahold is required under these swap contracts to redeem the U.S. dollar notional amount through semi-annual installments that
commenced in September 2004. $232 million has been paid down as of December 30, 2012.
3 As of December 30, 2012, $31 million has been repaid since inception.
4 Notes were swapped to €299 million at an interest rate of 7.065% (see Note 30 for additional information related to the JPY swap).
5 The average interest rale for the financing obligations amounted to 7.9% in 2012 (20117.9%).
6 Mortgages payable are collateralized by buildings and land. The average interest rate for these mortgages payable amounted to 7.2% in 2012 (20117.4%).
The fair values of financial instruments, corresponding derivatives, and the foreign exchange and interest rate risk management policies applied by Ahold are disclosed in Note 30.
The Company has a Euro Medium Term Note (EMTN) program that had an aggregate of €596 million of outstanding notes as of December 30, 2012. The notes issued under the program
include the remaining outstanding balances of GBP 500 million and JPY 33,000 million notes, maturing in 2017 and 2031respectively. The notes issued under the EMTN program contain
customary restrictive covenants. During 2012, Ahold was in compliance with these covenants.
Credit facilities
Ahold has access to a €1.2 billion unsecured, committed, multi-currency and syndicated credit facility, which was refinanced in June 2011In June 2012, we extended its maturity by one year
to June 2017 while the facility size will reduce by €186 million in 2016. This credit facility may be used for working capital and for general corporate purposes of the Company and provides
for the issuance of letters of credit to an aggregate maximum amount of $550 million (€416 million).
The facility contains customary covenants and is subject to a financial covenant that requires Ahold not to exceed a maximum leverage ratio, as defined in the facility agreement, of 4.0:1.
During 2012, Ahold was in compliance with these covenants, and as of December 30, 2012, there were no outstanding borrowings under the facility other than letters of credit to an
aggregate amount of $244 million (€1 84 million).
Ahold also has access to various uncommitted credit facility lines serving working capital needs that, as of December 30, 2012, totaled €1 10 million. As of December 30, 2012, €2 million
was drawn under these credit facility lines.
