18. F inancial Liabilities
below).
18.1 Long-term Debt
Delhaize Group manages its debt and overall financing strategies using a co
mbination of short, t
edium and
long 'te rm
de
bt and
interest rate and currency swaps. The Group finances its daily working capita
l requireme
nts, whe
n necessary
through the
use of
its various committed and uncomm itte d lines of credit. The short and medium'term
borrowing
g arrangem
ents gene i
rally bear
interest at the inter'bank offering rate at the borrowing date plus a pre'set
margin. De
lhaize G
roup also has a treas
u ry
n ote s
program available.
The carrying values of long-term debt (excluding finance leases, see Note 18.3), net of disc
ounts and
premiums,
d eferred
transaction costs and hedge accounting fair value adjustments were as follows.
De
.cember 31
Nominal Interest
(in millions of Rate Ma
turity Cui
rency
2012
2011
2010
Senior notes, unsecured 5.7 0^5
2040
USD
438
445
430
Debentures, unsecured 9.00%
2031
USD
204
208
201
Notes, unsecured 8.05%
2027
USD
52
53
51
Senior fixed rate bonds^ 3.1 25^5
2020
EUR
397
Senior noteSM 4.125%
2019
USD
232
Retail bond, unsecured 4. 25^5
2018
EUR
400
400
Bonds, unsecured 6.50%
2017
USD
339
345
334
Notes, unsecured(1) 5.625%
2014
EUR
229
541
544
Senior notes, unsecured^ 5.875% 2014<3)
USD
75
231
223
Bonds, unsecured(2) 5.10%
2013
EUR
80
80
80
Notes, unsecured 8.125%
2011
USD
38
Other debt 4.58% to 7% 2013 to
2031
USD
15
14
10
Mortgages payable 8.25% 2010 to
2016
USD
1
2
2
Senior notes 7.06% 2010 to
2016
USD
6
6
7
Other notes, unsecured 13.21% 2010 to
2013
USD
1
Floating term loan, unsecured LIBOR 6m+45bps
2012
USD
87
84
Bank borrowings
EUR
1
1
1
Total non-subordinated borrowings
2 469
2 413
2 006
Less current portion
(156)
(88)
(40)
Total non-subordinated borrowings, non-current
2 313
2 325
1 966
(1) Notes are part of hedging relationship (see Note 19) and refinancing transactions that took plac
(2) Bonds issued by Delhaize Group's Greek subsidiary Alfa Beta.
(3) Redeemed in January 2013 (see below).
:e in 2012 (see
The interest rate on long'term debt (excluding finance leases, see Note
18.3) was
on aver
age 4.4%,
5.0% and
5.
1% at
December 31, 2012, 2011 and 2010, respectively. These interest rates were calculated cons
discussed in Note 19.
idering the
interest ra te
swaps
Delhaize Group has a multicurrency treasury note program in Belgium. Under this program, Delhaize Group may issue both
short'term notes (commercial paper) and medium-term notes in amounts up to €500 million, or the equivalent thereof in other
eligible currencies. No notes were outstanding at De
I ber 31, 2012, 2011 and 2010.
Refinancing of Long-term Debts
In April 2012, D elhaize Group issued $300 million aggregate principal amount of senior notes with an annual interest rate of
4.125% due 2019. The senior notes were issued at a discount of 0.193% on their principal amount. The offering of the notes was
made to qualified investors pursuant to an effective registration statement filed by Delhaize Group with the U.S. Se c u riti es and
Exchange Commission (SEC), and are not listed on any stock exchange. At the same time, the Group completed a tender offer
for cash prior to maturity of up to €300 million aggregate principal amount of its outstanding €500 million 5.625% senior notes
due 2014. T he net proceeds of the debt issuance were used in part to fund the partial repurchase of these senior notes for a
nominal amount of €191 m illion, at a price of 108.079%.
DELHAIZE GROUP FINANCIAL STATEMENTS '12 117
