note 18. interest bearing loans and borrowings
|Secured bank loan|
|Unsecured convertible bonds||2011||236.7||227.5|
|Unsecured convertible bonds ||2013||310.1||304.6|
|Secured bank loan||2012||24.0||39.9|
|Secured bank loan||2015||111.4||-|
|Total non current||682.2||572.0|
The above figures include deferred borrowing costs.
Fair value disclosures
Details of the fair value of the Group’s interest bearing liabilities are set out in Note 22.
Unsecured convertible bonds
On 15 December 2006, the Company issued US$250M in convertible bonds with an underlying coupon rate of 4.5% (underlying effective interest rate of 8.75%), maturity 15 December 2011 and a conversion price of US$7.685 for Company shares.
On 11 March 2008, the Company issued US$325M in convertible bonds with an underlying coupon rate of 5.0% (underlying effective interest rate of 7.13%), maturity 11 March 2013 and a conversion price of US$6.59 for Company shares.
In disclosing the convertible bonds in the Consolidated Financial Statements, the Company has accounted for them in accordance with Australian Accounting Standards. Under these standards the convertible bonds consist of both a liability (underlying debt) and equity component (conversion rights into Company shares).
Secured bank loans
On 26th May 2006 the Company entered into a project financing facility amounting to US$71M for the construction of the Langer Heinrich Mine. The financing is provided by Société Générale Australia Branch (as lead arranger), Nedbank Capital and Standard Bank Limited and consists of a seven year Project Finance Facility of US$65M and a Standby Cost Overrun Facility of US$6M. The Project Finance Facility bears interest at a margin over the London Interbank Offered Rate (LIBOR) and is repayable on a six monthly basis over the term of the loan. No requirement for political risk insurance exists under the terms of the Project Finance Facility. The facilities are secured with fixed and floating charges over the assets of LHUPL and its immediate holding companies. Paladin had provided a project completion guarantee as part of the facilities. The guarantee has since been released when the project satisfied the Completion Tests mid 2009.
At 30 June 2010 US$47.5M (2009: US$54.1M) was outstanding under the project finance facilities. Following principal repayments of US$7.6M in July 2010 the outstanding debt balance had reduced to US$39.9M.
On 30th March 2009, the Company entered into a project financing facility amounting to US$167M for the construction of the Kayelekera. The project finance consists of a six year Project Finance Facility of US$145M, a Standby Cost Overrun Facility of US$12M and a Performance Bond Facility of US$10M. The facilities are being provided by Société Générale Corporate and Investment Banking (as inter-creditor agent and commercial lender), Nedbank Capital a division of Nedbank Limited (ECIC lender) and Standard Bank Limited (as ECIC facility agent and lender). The facilities are secured over the assets of PAL and are repayable every four months over the term of the loan.
At 30 June 2010 US$145M (2009: US$Nil) had been drawn of the project finance facilities. Following principal repayments of US$9.1M on the 31st July 2010 the outstanding debt balance had reduced to US$135.9M.
Deferred Borrowing costs relating to the establishment of the facilities have been included as part of interest bearing loans and borrowings.
Financing facilities available
At reporting date, the following financing facilities had been negotiated and were available:
|Unsecured convertible bonds||575.0||575.0|
|Secured bank loans||204.5||54.1|
|Facilities used at reporting date:|
|Unsecured convertible bonds||575.0||575.0|
|Secured bank loans||192.5||54.1|
|Facilities unused at reporting date:|
|Unsecured convertible bonds||-||-|
|Secured bank loans||12.0||-|
Assets pledged as security
The carrying amounts of assets pledged as security for current and non current interest bearing liabilities (secured bank loans) are:
|Cash and cash equivalents||47.3||19.6|
|Trade and other receivables||41.5||24.1|
|Total current assets pledged as security||191.3||96.3|
|Property, plant and equipment||533.2||153|
|Deferred tax asset||-||3.9|
|Total non current assets pledged as security||717.8||212|
|Total assets pledged as security||909.1||308.3|
2010 assets pledged include both LHM and KM whereas 2009 includes LHM only.