Philips 2008 Annual Report Download - page 167

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Long-term debt
range of
interest rates
average rate
of interest
amount
outstanding
2008 due in 1 year
due after 1
year
due after 5
years
average
remaining
term (in
years)
amount
outstanding
2007
Eurobonds 6.1-6.1% 6.1% 750 −750 −2.4 2,442
USD bonds 3.3-7.8% 5.9% 2,522 −2,522 1,822 14.0 357
Convertible debentures 1.7-1.7% 1.7% 81 72 9 −2.6 103
Private financing 1.0-12.4% 4.5% 8 1 7 −1.8 9
Bank borrowings 1.0-16.3% 5.1% 11 −11 4 3.6 4
Finance Leases 1.0-11.3% 3.0% 135 4 131 46 3.9 88
Other long-term debt 2.0-16.4% 5.2% 65 54 11 1 1.4 58
5.7% 3,572 131 3,441 1,873 −3,061
Corresponding data
of previous year 5.9% 3,061 1,849 1,212 416 3,213
The following amounts of long-term debt, as at December 31, 2008,
are due in the next five years:
2009 131
2010 75
2011 1,020
2012 14
2013 459
Total 1,699
Corresponding amount
of previous year 2,645
In March 2008, Philips placed a total of USD 3,100 million of debt which
consisted of a floating rate note for USD 350 million, and 3 fixed rate
bonds totaling USD 2,750 million. The weighted average interest rate
of the new bonds was 5.66% at December 31, 2008. Philips used the
proceeds of this offering to refinance the EUR 1,691 million worth of
notes that matured in the first half of 2008. As of December 31, 2008,
Philips had outstanding public bonds of EUR 3,272 million previously
issued mostly in USD or EUR.
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The following table provides additional details regarding the
outstanding bonds.
effective rate 2007 2008
Unsecured Eurobonds
Due 2/06/08; 7 1/8% 7.302% 130 −
Due 5/14/08; 7% 7.094% 61 −
Due 5/16/08; 5 3/4% 5.817% 1,500 −
Due 5/16/11; 6 1/8% 6.122% 750 750
Adjustments1) 1−
2,442 750
Unsecured USD Bonds
Due 5/15/25; 7 3/4% 8.010% 67 70
Due 6/01/26; 7 1/5% 7.426% 113 118
Due 8/15/13; 7 1/4% 7.554% 97 101
Due 5/15/25; 7 1/8% 7.361% 70 73
Due 11/03/11; 3 3/8% 3.128% −248
Due 11/03/13; 4 5/8% 4.949% −355
Due 11/03/18; 5 3/4% 6.066% −887
Due 11/03/38; 6 7/8% 7.210% −710
Adjustments1) 10 (40)
357 2,522
Adjustments relate to issued bond discounts, transaction costs and fair value
1)
adjustments for interest rate derivatives.
The provisions applicable to all corporate bonds that have been
issued by the Company in March 2008, contain a ‘Change of Control
Triggering Event’. This means that if the Company would experience
such an event,
it may be required to offer to purchase the bonds of
that series at a purchase price equal to 101% of their principal
amount, plus accrued and unpaid interest, if any.
Secured liabilities
In 2008, EUR 3.5 million of long-term and short-term debt was
secured by collateral of EUR 3.4 million manufacturing assets
(2007: EUR nil).
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Philips Annual Report 2008 167
254
Corporate governance
250
Reconciliation of
non-US GAAP information
262
Ten-year overview
266
Investor information