Annual Report for the year ended 30 June 2009
Notes to the Group annual financial statements
close window  
 
Decrease font size | Increase font size | Print page | E-mail page
Non-current liabilities
 
  Notes   2009  
R’million  		 Restated  
2008  
R’million  
Preference shares – liability component   15   392,2   402,1  
Borrowings   17   3 433,8   75,9  
Deferred-payables   18   —   0,8  
Deferred revenue   19   —   1,7  
Deferred tax liabilities   7   203,0   148,5  
Retirement benefit obligations   20   9,4   9,4  
    4 038,4   638,4  
    2009  
R’million  		 Restated  
2008  
R’million  
17.   BORROWINGS    
  Non-current borrowings      
  Secured loans    2 800,6   61,7  
  Finance lease and instalment credit liabilities   8,2   14,2  
  Unsecured loans   625,0   —  
    3 433,8   75,9  
  Current borrowings      
  Secured loan   303,3   112,3  
  Finance lease and instalment credit liabilities   18,5   13,7  
  Bank overdrafts   742,4   577,3  
  Unsecured loans   1 606,1   2 400,2  
    2 670,3   3 103,5  
  Total borrowings   6 104,1   3 179,4  
  Definitions  
JIBAR – Johannesburg Inter-bank Acceptance Rate  
IBOR  – London Inter-bank Offer Rate  
T-Bill   – Treasury Bill Rate  		    
 
 
      Maturity profile            
  June 2009   Total   
R’million  		 Within   
1 year   
R’million  		 1 – 5   
years   
R’million  		 Floating/  
fixed   
rate   		 Interest  
rate  
%  		 Average  
effective  
interest  
rate  
%  		    
  Secured loans    3 103,9   303,3   2 800,6            
  Gross US Dollar term loan   2 996,7   218,2   2 778,5   Floating   Linked to 3-month  
LIBOR +  
margins ranging  
between 2,7%  
and 2,8%  		 3,8   #    
  Capital raising fee   (39,8)   (9,3)   (30,5)   —   —   —      
                   
(a)   Net US Dollar term loan   2 956,9   208,9   2 748,0            
(b)   US Dollar   86,2   86,2   —   Floating    Linked to 6-month  
LIBOR + margins  
ranging  
between1,3%  
and 6,0%  		 4,8      
(c)   Brazilian Real   60,8   8,2   52,6   Fixed    6,0   6,0      
                   
  Finance lease and instalment credit liabilities   26,7   18,5   8,2            
(d)   US Dollar   3,8   2,4   1,4   Fixed    12,0   12,0      
(d)   Brazilian Real   18,5   13,9   4,6   Fixed    16,5   16,5      
(e)   South African Rand   4,4   2,2   2,2   Floating    Linked to prime  
overdraft rate  		 6,0      
                   
  Bank overdrafts   742,4   742,4   —            
  US Dollar   10,4   10,4   —   Floating    Linked to  
3-month   
LIBOR +3,0%  		 5,5      
  Kenyan Shilling   2,8   2,8   —   Fixed    12,0   12,0      
  Tanzanian Shilling   10,5   10,5   —   Floating    Linked to  
3-month  
T-Bill +2,25%  		 13,0      
(f)   South African Rand   718,7   718,7   —   Floating    Prime overdraft  
rate less 1,0%  		 14,2      
                   
  Unsecured loans   2 231,1   1 606,1   625,0            
  US Dollar   42,7   42,7   —   Floating    Linked to  
3-month  
LIBOR +3,0%  		 4,1      
  Kenyan Shilling   8,1   8,1   —   Floating    Linked to   
3-month  
Libor +3,0%  		 4,0      
(f)   South African Rand   1 305,3   1 205,3   100,0   Floating    Overnight call   12,5      
(f)   South African Rand   250,0   250,0   —   Fixed    11,4   11,4      
(f)   South African Rand   525,0   —   525,0   Floating   Linked to   
3-month   
JIBAR + margins  
ranging between  
2,4% and 3,0%  		 13,0   #    
(f)   South African Rand   100,0   100,0   —   Fixed   10,5   10,5      
  #The loans were hedged by using interest rate swap arrangements. Refer here for more detail on these swaps.      

 

    Maturity profile        
  June 2008   Total   
R’million  		 Within   
1 year   
R’million  		 1 – 5   
years   
R’million  		 Floating/  
fixed   
rate   		 Interest  
rate  
%  		 Average  
effective  
interest  
rate  
%  		  
  Secured loans    174,0   112,3   61,7          
  Pound Sterling   27,1   27,1   —   Floating    Linked to 6-month  
LIBOR +2,75%   		 8,6   #  
  Brazilian Real   76,8   15,1   61,7   Fixed    6,0   6,0    
  Tanzanian Shilling   12,8   12,8   —   Fixed    16,0   16,0    
  Tanzanian Shilling   7,5   7,5   —   Floating    Linked to 3-month  
T-Bill +2,5%   		 7,8    
  Indian Rupee   49,8   49,8   —   Fixed    6,0   6,0    
               
  Finance lease and instalment credit liabilities   27,9   13,7   14,2          
  Brazilian Real   24,0   11,5   12,5   Fixed    16,0   16,0    
  South African Rand   3,9   2,2   1,7   Floating    Linked to prime  
overdraft rate   		 5,4    
                 
  Bank overdrafts   577,3   577,3   —          
  Tanzanian Shilling   3,8   3,8   —   Fixed    16,0   16,0    
  Tanzanian Shilling   3,9   3,9   —   Floating    Linked to 3-month  
LIBOR +2,0%   		 7,8    
  Tanzanian Shilling   8,4   8,4   —   Floating    Linked to 3-month  
T-Bill +2,0%   		 7,0    
  Indian Rupee   11,4   11,4   —   Fixed    4,0   4,0    
  South African Rand   549,8   549,8   —   Floating    Prime overdraft  
rate less 1,0%  		 14,5    
               
  Unsecured loans   2 400,2   2 400,2   —          
  Brazilian Real   83,5   83,5   —   Fixed    12,0   12,0    
  Mexican Peso   3,9   3,9   —   Floating    Linked to 3-month  
LIBOR +1,65%   		 7,4    
  Kenyan Shilling   47,2   47,2   —   Floating    Linked to 3-month  
LIBOR +3,0%   		 8,8    
  South African Rand   2 265,6   2 265,6   —   Floating    Overnight call    11,6    
  #The loans were hedged by using interest rate swap arrangements. Refer here for more detail on these swaps.    
  Profile and repayment term of US Dollar term loan    
 
(a)     The loan comprises:  
  1) An A loan which is a five-year amortising loan of USD255,0 million in respect of which quarterly equal repayments of capital and interest are to be made, with the first payment being on 10 January 2010.  
Quarterly interest payments on the outstanding balance have been made from 10 January 2009. The loan bears interest at a rate of 3-month LIBOR +2,7%.  
A swap agreement was entered into on 6 October 2008, in terms of which all future payments of interest have been fixed at an interest rate of 6,1% per annum.  
  USD’million
Year ending 30 June 2010 28,6  
Year ending 30 June 2011 59,8  
Year ending 30 June 2012 63,6  
Year ending 30 June 2013 67,6  
Year ending 30 June 2014 35,4  
  255,0  
     
  2) A B loan of USD130,0 million which is repayable at the end of the five-year period, however cash sweeps of excess cash flows from October 2010 may be called for at the election of the consortium of banks.
Quarterly interest payments on the outstanding balance have been made from 10 January 2009. The loan bears interest at a rate of 3-month LIBOR + 2,8%.
Quarterly interest payments in respect of this loan have been hedged to 10 April 2012 by means of entering into a swap agreement on 6 October 2008, at a fixed rate of 6,1% per annum. The hedge entered into is based on the expectation that the consortium will exercise their right to sweep excess cash based on cash flows generated to this date by Aspen Global.
The quarterly interest payments subsequent to 10 April 2012 have not been hedged and will bear interest at a rate of 3-month LIBOR plus a margin of 2,8%.
Refer here for more detail on interest rate swaps.
   

Security given
The following security has been given to the security trustee on behalf of a consortium of banks, comprising The Standard Bank of South Africa Ltd, Absa Bank Ltd and Nedbank Ltd

1) Guarantee by Aspen Pharmacare Holdings Ltd, Pharmacare Ltd, Aspen Nutritionals (Pty) Ltd and Aspen Australia and any other subsidiary which becomes wholly owned and contributes more than 5% of Group earnings before interest, tax, depreciation and amortisation or net asset value.
2) Pledge of shares by Aspen Pharmacare Holdings Ltd of all its current and future shareholding in Aspen Global.
3) Pledge of shares by Aspen Global of its shareholding in Aspen Australia.
4) Floating and fixed charge of all movable and immovable property by Aspen Global to a value not exceeding USD462 million, including:
stock-in-trade;
all current and future receivables;
specified trademarks; and
any other assets.
5) A charge over receivables of Aspen Australia as security of the guarantee given above.
6) Grant of cession of rights and title to the GSK acquisition agreement.
(b)   Secured over receivables in Brazil to the extent of the liability.
(c)   Secured over the Campos facility in Brazil, to the extent of the liability.
(d)   Secured by property, plant and equipment with a net book value of R38,8 million in Brazil.
(e)   Secured by property, plant and equipment with a net book value of R4,4 million in South Africa.
(f)   Cross guarantees between Aspen Pharmacare Holdings Ltd and its subsidiaries exist in respect of the borrowings and bank overdrafts.
    Default and breaches
There were no defaults or breaches of the contractual terms of the non-current borrowings during the year. Refer to note 36 for more detail.
   
Finance leases   2009  
R’million   		2008  
R’million  
Finance lease liabilities: minimum lease payments  
Not later that 1 year   22,0   13,9  
Later than 1 year but not later than 5 years   8,5   14,3  
  30,5   28,2  
Future finance charges on finance leases   (3,8)  (0,3) 
Present value of finance lease liabilities   26,7   27,9  
The present value of finance lease liabilities is as follows  
Not later that 1 year   18,5   13,7  
Later than 1 year but not later than 5 years   8,2   14,2  
  26,7   27,9  
The Group had the following undrawn borrowing facilities at year-end      
– Local facilities of R1,1 billion      
– An offshore facility of R44,9 million (Tanzanian Shilling denominated)      
– A foreign exchange facility of R391,0 million (US Dollar denominated)      
All facilities negotiated are reviewed annually.       
 
 
 
 
Back to top
| close window