Notes to the consolidated financial statements
101
21 Loans and credit facilities
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Credit facilities
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
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
December 28,
2014
Current
Non-current portion
Total
December 29,
2013
million
within
1 year
Between
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
310
310
288
288
USD 94 indebtedness 782%, due January 20202
8
31
39
6
29
6
41
USD 71 indebtedness 8.62%, due January 2025
58
58
52
52
USD 500 notes 6.875%, due May 2029
411
411
364
364
JPY 33,000 notes LIBOR plus 1.5%, due May 20313
225
225
228
228
Deferred financing costs
(1)
(2)
(3)
(1)
(2)
(3)
Total notes
8
340
692
1,040
6
316
648
970
Other loans
1
2
3
2
1
3
Financing obligations4
20
92
275
387
14
64
268
346
Mortgages payable5
2
2
6
10
2
3
5
10
Total loans
30
435
975
1,440
22
385
922
1,329
1 During 2005, Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million (€319 million) has been netted with €9 million as per December 28, 2014, (December 29, 2013: €12 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 the GBP 250 million was swapped to U.S. dollars (see 30 for additional information).
2 As of December 28, 2014, $47 million has been repaid since inception.
3 Notes were swapped to €299 million at an interest rate of 7065% (see Nolo 30 for additional information related to the JPY cross-currency swap).
4 The weighted average interest rate for the financing obligations amounted to 77% in 2014 (2013: 719%).
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5 Mortgages payable are collateralized by buildings and land. The weighted average interest rate for these mortgages payable amounted to 5.6% in 2014 (2013: 5.9%).
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 €544 million of outstanding notes as of December 28, 2014. 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 2031, respectively. The notes issued under the EMTN program contain customary restrictive covenants. During 2014, Ahold was in
compliance with these covenants.
Ahold has access to a €1.2 billion unsecured, committed, multi-currency and syndicated credit facility that was refinanced in June 2011 and will mature in 2018. 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 (€452 million). A bilateral facility for standby Letter of Credit was signed in 2014 for a total
amount of $218 million (€179 million), and was fully used per December 28, 2014.
The €1.2 billion 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 4.0:1During 2014, Ahold was
in compliance with these covenants. As of December 28, 2014, there were no outstanding borrowings under the facility other than letters of credit to an aggregate amount of $16 million (€13 million). In the beginning of 2015,
Ahold issued a request to our relationship banks to amend the facility by extending it through 2020 and reducing the amount from €1.2 billion down to €1 billion. Ahold expects to close the process during the first quarter
of 2015.
Ahold also has access to various uncommitted credit facility lines serving working capital needs that, as of December 28, 2014, totaled €219 million. As of December 28, 2014, €0.3 million was drawn under these credit
facility lines.
