Agreement to Convert Debt

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					16. Debt and Borrowing Arrangements
Debt and borrowing arrangements consist of the following:


                                                                                      Current         Long-term
At December 31, 2001                                                                  maturity          maturity
Bank loans and overdrafts                                                      $          8.2     $         1.0     $
Capital leases                                                                            0.6               3.0
Debt and borrowings                                                            $          8.8     $         4.0     $


                                                                                      Current         Long-term
At December 31, 2002                                                                  maturity          maturity
Bank loans and overdrafts                                                      $          7.0     $            –    $
Capital leases                                                                            0.5               0.7
Debt and borrowings                                                            $          7.5     $         0.7     $


                                                                                      Current         Long-term
At December 31, 2003                                                                 maturity          maturity
Bank loans and overdrafts                                                      $          1.0     $            –    $
Capital leases                                                                            0.3               0.2
Debt and borrowings                                                            $          1.3     $         0.2     $


The denominations of bank loans and overdrafts by currency at December 31, 2003 are as follows:


                                                                                      Interest        Amount of
                                                               Maturity                   rate           facility
U.S. Dollar 50 million treasury management agreement                                              $        50.0     $
Brazilian Real 2.9 million facility                               2004                25.90%                1.0
On demand credit lines, other currencies                                                                   30.2
                                                                                                  $        81.2     $
Bank loans and overdrafts
The carrying value of bank loans and overdrafts, denominated in Brazilian Real and Japanese Yen at December 31, 2001, 2002 and 2003,
approximated fair value. The weighted average interest rates charged on bank loans and the overdrafts for the years ended December 31, 2001
2002 and 2003, were 3.8%, 3.5% and 25.9%, respectively.

As of January 1, 2001, the Company had available a revolving credit facility pursuant to an agreement among Equant, certain of its subsidiaries
and a syndicate of fifteen banks named therein, entered into on October 23, 1998. The facility agreement provided a $400.0 unsecured revolving
credit facility. The facility agreement had a final maturity on October 23, 2003. The Company and certain of its subsidiaries were able to borrow
funds under the facility agreement. The Company (with certain subsidiaries) guaranteed all amounts borrowed under the facility. The Company
had drawn down the full amount under the facility agreement as of January 1, 2001. The interest rate was 37.5 basis points above LIBOR. The
facility agreement was fully repaid and terminated as a result of the France Telecom Transactions.

On January 9, 2001, the Company entered into a $300.0 unsecured revolving credit facility pursuant to an agreement among Equant, certain of
its subsidiaries and three banks. The revolving credit facility had a final maturity on January 8, 2002, with an option to convert borrowings or
amounts outstanding at maturity into term loans for an additional period of 180 days. With the exception of the margin, which was 75 basis points
over LIBOR until June 30, 2001 and 90 basis points over LIBOR thereafter until final maturity, all other terms and conditions were substantially
the same as those of the $400.0 revolving credit facility dated October 23, 1998. At June 29, 2001, the Company had drawn down $202.5 of this
facility agreement. The facility agreement was fully repaid and terminated as a result of the France Telecom Transactions.

At January 1, 2001, a subsidiary of Equant in France had entered into a $20.0 multi-currency revolving credit and bank guarantee facility availab
until December 31, 2001. The interest rate applicable to amounts drawn down under the facility was at a variable margin over the applicable inte
bank rate. As at January 1, 2001, $17.2 of the facility, mainly denominated in pounds sterling and Euros, was drawn down. The entire amount
was repaid in 2001 and the facility was canceled.

On May 2, 2002, the Company entered into a $250.0 revolving credit facility agreement and a $50.0 treasury management agreement with
France Telecom. Under the revolving credit facility, France Telecom made available to the Company a maximum of $250.0. Drawdowns
available in a variety of currencies during the period June 3, 2002 until September 30, 2003. However, no drawdowns were made and this facility
was not renewed. Under the treasury management agreement, France Telecom has made available to the Company an uncommitted cre
facility of $50.0. Interest will be charged at LIBOR plus 40 basis points on the net balance outstanding under the agreement. The agreement is
subject to renewal on December 31 each year, and was renewed on December 31, 2003.

Capital leases
The Company leases certain items of property, plant and equipment under long-term capital leases. At December 31, 2001, 2002 and 2003, the
present value of minimum lease payments was $3.6, $1.2 and $0.5, respectively. Future minimum lease payments for assets held under capital
lease arrangements are as follows:


At December 31, 2003
2004                                                                            $
2005
2006
Total minimum lease payments
Less: amount representing interest
Present value of minimum lease payments
Less: capital lease obligations included in current portion of long-term debt
Long-term capital lease obligations                                             $
     Total
   maturity
       9.2
       3.6
      12.8


     Total
   maturity
       7.0
       1.2
       8.2


     Total
  maturity
       1.0
       0.5
       1.5




   Amount
drawn down
         –
       1.0
        –
       1.0
   d 2003,
 ember 31, 2001,


  ts subsidiaries
    ured revolving
e able to borrow
  The Company
    LIBOR. The


    nt, certain of
orrowings or
 s 75 basis points
re substantially
  n $202.5 of this


   facility available
   applicable inter
   tire amount


ement with
wdowns were
   and this facility
mitted credit
e agreement is



02 and 2003, the
    under capital
 0.3
 0.1
 0.1
 0.5
  –
 0.5
(0.3)
  0.2

				
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