Boskalis_Annual_Report_2016

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24. INTEREST-BEARING BORROWINGS
31 DECEMBER
2016 2015
NON-CURRENT LIABILITIES
US Private Placements 306,876 711,575
Revolving multi-currency credit facility - 196,897
Other interest-bearing loans 1,411 5,762
308,287 914,234
CURRENT LIABILITIES
US Private Placements 452,851 -
Other interest-bearing loans 293 18,127
453,144 18,127
US private placements relates to two placements of in total EUR 759.7 million (2015: EUR 711.6 million),
calculated at year-end currency rates.
ƒ One concerns a US private placement of USD 433 million and GBP 11 million with institutional investors
in the United States and the United Kingdom in July 2010. The placement consists of three tranches with
an original duration of 7, 10 and 12 years, respectively. In December 2016 the Group informed the
noteholders that this US private placement will be repaid early in January 2017. Both the loan and the
accrued liabilities including the make-whole payments due to the noteholders
are accounted for as interest-bearing borrowings under current liabilities.
The US dollar and GBP proceeds from this US private placement have been swapped into euros, for a
total amount of EUR 354 million, through cross-currency swaps. The unchanged fixed interest rate
amounts to 4.76%. As a result of early repayment, these cross-currency interest rate swaps no longer
qualified for hedge accounting and the fair value has been accounted for in the 2016 statement of profit
or loss .
ƒ The second placement amounting to USD 325 million was placed with institutional investors in July 2013.
The principal of this placement will be repaid after the original duration of ten years. The annual interest
rate is 3.66%.
A revolving multi-currency credit facility agreed with a bank syndicate was arranged for the Group in 2014
and amounts to EUR 600 million. This credit facility had an original duration of 5 years with two options,
executed in 2015 and 2016, respectively and has therefore been extended to 2021. Following the
repayment in the first quarter of USD 215 million (EUR 199 million) the Group did not draw on this credit
facility in 2016.
The Group agreed to comply with a number of customary covenants with the bank syndicate and US
private placement holders. Twice a year Boskalis provides a compliance certificate to these lenders,
reporting on the covenants for the twelve-month period ending on 30 June and 31 December, respectively.
The main financial covenants are a net debt / EBITDA ratio not exceeding 3 and an EBITDA / net interest
ratio of at least 4. These covenants are calculated in accordance with definitions agreed with the lenders. In
the event that the group does not meet any of these covenants, the loan may be due immediately. These
covenants were met at 31 December 2016. The net debt / EBITDA ratio was -0.3 (2015: 0.4) and the
EBITDA / net interest ratio was 15 (2015: 27).
Interest rates, remaining terms and currencies of the interest-bearing borrowings are disclosed in the
explanatory notes to the financial instruments in the interest rate risk paragraph. As at 31 December 2016
the weighted average interest rate for the non-current portion of the interest bearing loans was 3.37%
(2015: 3.48%). The non-current portion of other interest-bearing loans due after more than five years
amounted to EUR 306.9 million (2015: EUR 344.9 million).
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ANNUAL REPORT 2016 – BOSKALIS
FINANCIAL STATEMENTS 2016