86
15.2 Parent Company Reserves
i) Legal reserve
In accordance with the Consolidated Text of the Corporate Enterprises Act, 10% of the net profit for each year must be allocated to the legal
reserve until it reaches at least 20% of share capital. The legal reserve may be used to increase capital provided its remaining balance does not
fall below 10% of the increased capital amount. With the exception of the aforementioned purpose, and when it does not exceed 20% of share
capital, this reserve may be used only to offset losses, provided no other reserves are available for this purpose.
ii) Share premium
The Consolidated Text of the Corporate Enterprises Act expressly allows the balance of this reserve to be used to increase capital and imposes
no restrictions on its availability.
15.3 Treasury Shares
At year-end, NH Hotel Group held 9,359,003 treasury shares representing 2.67% of its share capital at a total cost of €38,805 thousand. On 4
November 2013, the Spanish Securities Market Commission was informed of the loan of 9,000,000 shares from the total number of treasury shares
to three financial entities that were involved in the placement of bonds convertible or exchangeable into the shares of NH Hotel Group, S.A., worth
€250 million. The purpose of this loan was to allow those financial entities to offer the shares to subscribers of the bonds requesting them (see note
16).
15.4 Non-Controlling Interests
The movements in this heading in 2014 and 2013 are summarised below:
€Thousand
2014
2013
Opening balance
153,001
159,158
Capital increases (Note 2.5.4)
(123,055)
-
Comprehensive profit (loss) attributed to non-controlling interests
(558)
(289)
Percentage changes in shares and sales (Note 2.5.4)
(4,626)
(3,875)
Dividends paid to non-controlling interests
(765)
(1,466)
Other movements
(816)
(527)
Closing balance
23,181
153,001
The “Dividends paid to non-controlling interests” item basically reflects the dividends paid out in 2014 to the following companies: NH Marín, S.A.,
for €250 thousand, and Latinoamericana de Gestión Hotelera, S.A., for €515 thousand.
16.-DEBT IN RESPECT OF BOND ISSUES AND BANK BORROWINGS
The balances of the “Bonds and other negotiable securities” and “Debts with credit institutions” items at 31 December 2014 and 2013 were as follows:
€Thousand
2014
2015
Long-term Short-term Long-term Short-term
Convertible notes
228,156
-
223,417
-
Guaranteed senior notes
250,000
-
250,000
-
Borrowing costs
-
3,517
-
3,661
Arrangement expenses
(14,174)
-
(15,129)
-
Obligations and other negotiable securities
463,982
3,517
458,288
3,661
Syndicated loans
111,633
19,700
114,333
19,000
Mortgages
86,415
18,807
131,124
55,855
Equity loans
-
-
-
6,493
Subordinated loans
75,000
-
75,000
-
Credit lines
-
32,617
6,506
12,482
Arrangement expenses
(4,104)
(1,365)
(5,668)
(716)
Borrowing costs
-
1,152
-
2,930
Debts with credit institutions
268,944
70,911
321,295
96,044
Total
732,926
74,428
779,583
99,705
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
