Issuance of new Long-term Debts
Repayment of Long-term Debts
Defeasance of Hannaford Senior Notes
Long-term Debt by Currency, Contractually Agreed Payments and Fair values
FINANCIAL STATEMENTS
In 2012, Delhaize Group also issued €400 million senior fixed rate bonds due 2020, at an annual coupon of 3.125%, issued at
99.709% of their principal amount. Delhaize Group entered into matching interest rate swaps to hedge €100 million of the
Group's exposure to changes in the fair value of the 3.125% bonds due to variability in market interest rates (see Note 19).
The net proceeds of the issuance were primarily used to fund the following tender offers:
In 2012, Delhaize Group completed a second tender offer for cash and purchased an aggregate nominal amount of €94
million of the above mentioned €500 million notes at a price of 107.740%. Following the completion of both offers, an
aggregate nominal amount of €215 million of the notes remained outstanding.
Simultaneously, the Group also completed an offer for cash for any and all of its outstanding $300 million 5.875% senior
notes due 2014 and purchased $201 million of the tendered notes at a purchase price of 105.945%. Following the
completion of the tender, an aggregate nominal amount of $99 million of the notes remained outstanding for which Delhaize
Group exercised its right to redeem these remaining outstanding notes (completed in 2013, including redemption of the
underlying cross-currency swap and without any material impact on the 2013 profit or loss).
These refinancing transactions did not qualify as a debt modification and resulted in the derecognition of existing notes and
recognition of new notes (see also Note 29.1).
Both the €400 million and $300 million notes issued in 2012 contain a change of control provision allowing their holders to r equire
Delhaize Group to repurchase the notes in cash for an amount equal to 101% of their aggregated principal amount plus accrued
and unpaid interest thereon, if any, upon the occurrence of both (i) a change in control and (ii) a downgrade of the rating of the
notes by the rating agencies Moody's and Standard Poor's within 60 days of Delhaize Group's public announcement of the
occurrence of the change of control.
During 2014 and 2013, Delhaize Group did not issue any long-term debts.
In 2014, Delhaize Group repaid the outstanding €215 million of its 5.625% senior notes and unwound the corresponding cross-
currency hedge instrument (see Note 19).
In 2013, €80 million unsecured bonds issued by Delhaize Group's subsidiary Alfa Beta matured and were repaid.
In 2012, the $113 million floating term loan issued in 2007 by the Group matured and was repaid.
In 2003, Hannaford invoked the defeasance provisions of several of its outstanding senior notes and placed sufficient funds in an
escrow account to satisfy the remaining principal and interest payments due on these notes (see Note 11). As a result of this
defeasance, Hannaford is no longer subject to the negative covenants contained in the agreements governing the notes.
As of December 31, 2014, 2013 and 2012, the aggregate principal amounts of the notes outstanding were respectively $9 million
(€7 million), $8 million (€6 million) and $8 million (€6 million). At December 31, 2014, 2013 and 2012, restricted securities of
$10 million (€8 million), $10 million (€7 million) and $11 million (€8 million), respectively, were recorded in investment in
securities on the balance sheet (see Note 11).
The main currencies in which Delhaize Group's long-term (excluding finance leases, see Note 18.3) debt are denominated are as
follows:
December 31,
U.S. Dollar
Euro
Total
(in millions of
2014 2013 2012
1 400 1 224 1 362
802 1 015 1 107
2 202 2 239 2 469
The following table summarizes the contractually agreed (undiscounted) interest payments and repayments of principal of
Delhaize Group's non-derivative financial liabilities, excluding any hedging effects and not taking premiums and discounts into
account:
