Philips 2004 Annual Report Download - page 149
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The following table provides additional details regarding the outstanding bonds:
December 31
Description 2003 2004
Unsecured Eurobonds
Due 7/30/04, 5 1/8% 1,000 –
Due 8/30/05, 4.31% 300 –
Due 5/16/08, 5 3/4% 1,500 1,500
Due 5/16/11, 6 1/8% 750 750
Other unsecured Eurobonds
Due 2004 – 2008, interest range: 7–8 1/4% 553 441
Fair value adjustments (derivatives), issued bond discount 22 10
4,125 2,701
Unsecured US dollar bonds
Due 2004 – 2025, interest range: 7 1/4 – 8 3/8% 516 375
Fair value adjustments (derivatives), issued bond discount 3 (1)
519 374
Unsecured US dollar bonds, subject to put
Due 5/15/25, 7 1/8%, put date 5/15/07 81 74
Due 6/1/26, 7.2%, put date 6/1/06 132 121
213 195
As of December 2004, Philips had outstanding public bonds of EUR 3,270 million previously
issued mostly in USD or EUR. Two of the USD bonds are ‘putable’ bonds. A USD 175 million
bond issued (USD 103 million outstanding as of year-end 2004) at 7.125%, due 2025, carries an
option of each holder on May 15, 2007 to put the bond to the Company upon notice given to
Philips between March 15 and April 15, 2007, and a USD 300 million bond issued (USD 166
million outstanding as of year-end 2004) at 7.20%, due 2026, carries an option of each holder on
June 1, 2006 to put the bond to the Company upon notice given to Philips between April 1 and
May 1, 2006.
In the case of put exercise by investors, the redemption price would be equal to the principal
amount, plus accrued interest until the date of redemption. Assuming that investors require
repayment at the relevant put dates, the average remaining tenor of the total outstanding
long-term debt at the end of 2004 was 4.4 years, compared to 4.9 years in 2003. However,
assuming that the ‘putable’ bonds will be repaid at maturity, the average remaining tenor at the
end of 2004 was 5.4 years, compared to 5.9 years at the end of 2003.
Secured liabilities
Certain portions of long-term and short-term debt have been secured by collateral as follows:
amount of
the debt
collateral
property, plant
and equipment
other assets
Institutional financing 222 500 93
Other debts 20 18 –
Total 242 518 93
Previous year 29 2 52
148 Philips Annual Report 2004
Financial statements of the Philips Group