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21 Loans and credit facilities
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Our strategy Our performance
Governance
Financials
Investors
Ahold
Annual Report 2013
The notes in the table below were issued by Ahold or one
maturity as the underlying debt unless otherwise noted.
of its subsidiaries, the latter of which are
guaranteed by Ahold unless
otherwise noted. All related swap contracts have the
same
Current
Non-current portion
Total
December 29,
2013
Current
Non-current portion
Total
December 30,
2012
million
portion
within Between
1 year 1 to 5 years
After
5 years
portion
within
1 year
Between
1 to 5 years
After
5 years
Notional redemption amounts
GBP 500 notes 6.50%, due March 20171
288
288
290
290
USD 94 indebtedness 7.82%, due January 20202
6
29
6
41
6
29
13
48
USD 71 indebtedness 8.62%, due January 2025
52
52
54
54
USD 500 notes 6.875%, due May 2029
364
364
378
378
JPY 33,000 notes LIBOR plus 1.5%, due May 20313
228
228
290
290
Deferred financing costs
(1)
(2)
(3)
(1)
(3)
(4)
Total notes
6
316
648
970
6
318
732
1,056
Other loans
2
1
3
2
3
5
Financing obligations4
14
64
268
346
13
63
305
381
Mortgages payable5
2
3
5
10
3
2
6
11
Total loans
22
385
922
1,329
22
385
1,046
1,453
1 During 2005, Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million 300 million) has been netled with €12 million as per December 29, 2013, (December 30, 2012: €16 million)
representing an amount, 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 rale (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. $260 million has been paid down as of December 29, 2013.
2 As of December 29, 2013, $39 million has been repaid since inception.
3 Notes were swapped to €299 million at an interest rate of 7.065% (see Note 30 for additional information related to the JPY cross-currency swap).
4 The weighted average interest rate for the financing obligations amounted to 7.9% in 2013 (2012: 7.9%).
5 Mortgages payable are collateralized by buildings and land. The weighted average interest rale for these mortgages payable amounted to 5.9% in 2013 (2012: 6.5%).
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 €528 million of outstanding notes as of December 29, 2013. 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 201 3, 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 that was refinanced in June 2011In June 201 3, maturity was extended by one year (until
2018) for the full amount. This was the last extension possible. This credit facility may be used for working capital and for general corporate purposes and provides for the issuance of letters of
credit to an aggregate maximum amount of $550 million (€400 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 2013, Ahold was in compliance with these covenants, and as of December 29, 2013, there were no outstanding borrowings under the facility other than letters of credit to an
aggregate amount of $237 million (€1 72 million).
Ahold also has access to various uncommitted credit facility lines serving working capital needs that, as of December 29, 2013, totaled €1 06 million. As of December 29, 2013, €9 million
was drawn under these credit facility lines.
