Notes to the consolidated financial statements
107
21 Loans and credit facilities
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Credit facilities
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2015
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
January 3,
2016
Current
Non-current portion
Total
December 28,
2014
million
portion
within
1 year
Between
1 and 5 years
After
5 years
portion
within
1 year
Between
1 and 5 years
After
5 years
Notional redemption amounts
GBP 500 notes 6.50%, due March 20171
334
334
310
310
USD 94 indebtedness 782%, due January 20202
9
26
35
8
31
39
USD 71 indebtedness 8.62%, due January 2025
8
57
65
58
58
USD 500 notes 6.875%, due May 2029
460
460
411
411
JPY 33,000 notes LIBOR plus 1.5%, due May 20313
253
253
225
225
Deferred financing costs
(1)
(2)
(3)
(1)
(2)
(3)
Total notes
9
367
768
1,144
8
340
692
1,040
Other loans
1
2
3
1
2
3
Financing obligations4
22
102
273
397
20
92
275
387
Mortgages payable5
2
7
9
2
2
6
10
Total loans
31
472
1,050
1,553
30
435
975
1,440
1 During 2005, Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million (€340 million) has been netted with €6 million as perJanuary 3, 2016 (December 28, 2014: €9 million),
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. dollar (see Note 30 for additional information).
2 As of January 3, 2016, $57 million has been repaid since inception.
3 Notes were swapped to €299 million at an interest rate of 7065% (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 76% in 2015 (2014: 77%).
5 Mortgages payable are collateralized by buildings and land. The weighted average interest rate for these mortgages payable amounted to 5.6% in 2015 (2014: 5.6%).
representing an amount, amortizec
over the remain
ing
terms of tl
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 €593 million of outstanding notes as of January 3, 2016. 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 2015, Ahold was in
compliance with these covenants.
Ahold has access to an unsecured, committed, multi-currency and syndicated credit facility that was refinanced in June 2011In February 2015, the facility was amended from €1.2 billion to €1.0 billion, and the maturity
date was extended from 2018 to 2020, with the possibility of 12-month extensions in the first two years. In early 2016, Ahold requested to exercise the first of these options and extended the maturity date to February 2021
The 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 $275 million (€253 million). The €1.0 billion facility
contains customary covenants and is subject to a financial covenant that requires Ahold, in case its corporate rating is lower than BBB Baa2 from Standard Poor's and Moody's respectively, not to exceed a maximum
leverage ratio as defined in the facility agreement of 4.0:1During 2015, Ahold was in compliance with these covenants. As of January 3, 2016, there were no outstanding borrowings under the facility other than letters of
credit to an aggregate amount of $18 million (€16 million),
A bilateral facility for standby letter of credit was increased in 2015 to a total amount of $226 million (€208 million), and was fully used per January 3, 2016.
Ahold also has access to various uncommitted credit facility lines serving working capital needs that, as of January 3, 2016, totaled €226 million. As of January 3, 2016, nothing was drawn under these credit facility lines.
