17.-
DEBT INSTRUMENTS AND BANK BORROWINGS
The balance of “Obligations and other marketable securities” and “Bank borrowings” at 31 December 2013 and 2012 is as follows:
Thousand euros
2013
2012
Long-term Short-term Long-term Short-term
Convertible notes
223,417
-
-
-
Guaranteed senior notes
250,000
-
-
-
Borrowing costs
-
3,661
-
-
Arrangement expenses
(15,129)
-
-
-
Obligations and other negotiable securities
458,288
3,661
-
-
Syndicated loans
114,333
19,000
13,558
715,855
Mortgages loans
131,124
55,855
91,057
131,415
Equity loans
-
6,493
1,000
8,272
Subordinated loans
75,000
-
75,000
-
Credit lines
6,506
12,482
-
11,036
Arrangement expenses
(5,668)
(716)
(2,820)
(15,366)
Borrowing costs
-
2,930
-
2,119
Debts with credit institutions
321,295
96,044
177,795
853,331
Total
779,583
99,705
177,795
853,331
On 31 October and 8 November 2013, respectively, the placement and payment of guaranteed convertible senior note and convertible bond issues took place and a new
syndicated loan was arranged. Part of the funds obtained were allocated to fully repaying the syndicated financing awarded inMarch 2012 and the pending balance of the
Equity Swap signed by the Parent Company. This transaction resulted in the early settlement of the debt arrangement expenses associatedwith this syndicated financing
for EUR 7,913 thousand.
Convertible bonds
On 31 October 2013, the Parent performed a placement of convertible bonds among institutional investors totalling EUR 250,000 thousand, with the following
characteristics:
Size of the issue
€250,000,000
Face value of the bond
€100,000
Maturity
5
years
Rank of debt
Unguaranteed senior
Issue price
100%
Coupon
4%
Swap price
€4.919
Conversion premium
30%
Redemption price
100%
Maximum number of shares to issue
50,823,338
In certain circumstances, at the request of the bondholder or Parent Company, this instrument may be redeemed or converted early.
This transaction is considered an instrument comprising liabilities and equity, with the equity at the time of issuance worth €27,230 million.
As is commonplace for this type of issue, and in order to enhance the liquidity of the instrument on the secondary market, NH Hoteles, S.A. signed a security loan
agreement with the placing entities for up to 9 million treasury shares. This loan bears interest at 0.5% and was fully drawn at 31 December 2013 (Note 16.4).
Guaranteed senior notes
On 30 October 2013, the Parent performed a placement of guaranteed convertible senior notes at a nominal amount of EUR 250,000 thousand, maturing in 2019. The
nominal yearly interest rate for said issuance of notes is 6.875%.
This financing requires the fulfilment of a series of contractual obligations which had been fulfilled in their entirety at 31 December 2013.
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
85
