Philips 2007 Annual Report Download - page 226

Philips Annual Report 2007232
58
Short-term debt
2006 2007
Short-term bank borrowings 622 464
Other short-term loans 34 32
Current portion of long-term debt 215 1,854
871 2,350
During 2007, the weighted average interest rate on the bank
borrowings was 7.9% (2006: 6.3%).
In the Netherlands, the Company issues personnel debentures with
a 5-year right of conversion into common shares of Royal Philips
Electronics. Convertible personnel debentures may not be converted
within a period of 3 years after the date of issue. These convertible
personnel debentures are available to most employees in the Netherlands
and are purchased by them with their own funds and are redeemable
on demand. The convertible personnel debentures become
non-convertible debentures at the end of the conversion period.
Although convertible debentures have the character of long-term
nancing, the total outstanding amounts are classied as current
portion of long-term debt. At December 31, 2007, an amount of
EUR 103 million (2006: EUR 136 million) of convertible personnel
debentures was outstanding, with an average conversion price of EUR
24.26. The conversion price varies between EUR 16.81 and EUR 33.19
with various conversion periods ending between January 1, 2008
and December 31, 2012.
Included within the current portion of long-term debt is EUR 1,692
million of bonds, with EUR 130 million due to mature in February
2008 and EUR 1,562 million due to mature in May 2008.
The Company has access to a USD 2.5 billion commercial paper
program which was established at the beginning of 2001. The
Company also has available a seven year revolving credit facility for
USD 2.5 billion, established in December 2004, that could act as
back-up for the commercial paper program and can also be used
for general corporate purposes. The Company did not use the
commercial paper program or the revolving credit facility during 2007.
59
Long-term debt
range of
interest rates
average rate
of interest
amount
outstanding due in 1 year due after 1 year
due after
5 years
average
remaining term
(in years)
amount
outstanding
2006
Eurobonds 5.8 - 7.1% 6.0% 2,442 1,692 750 − 3.4 2,445
USD bonds 7.1 - 7.8% 7.3% 357 − 357 357 14.4 307
USD putable
bonds − − − − − − − 77
Convertible
debentures 0.8 - 0.8% 0.8% 103 103 − − − 136
Private nancing 1.0 - 6.0% 4.3% 9 − 9 1 2.3 8
Bank
borrowings 1.7 - 6.4% 3.4% 4 1 3 − 1.1 119
Liabilities arising
from capital
lease transactions 1.4 - 16.3% 3.7% 94 13 81 57 6.7 68
Other
long-term debt 2.0- 12.3% 6.5% 58 45 13 1 3.0 62
5.9% 3,067 1,854 1,213 416 3,222
Corresponding
data of
previous year 6.1% 3,222 215 3,007 405 3,917
128 Group nancial statements 188 IFRS information
Notes to the IFRS nancial statements
240 Company nancial statements