Eniro's borrowing is managed centrally by Eniro Treasury AB to ensure efficiency and risk control. Debt is raised at the group level and transferred to the subsidiary in the form of internal loans or capital contributions.
Eniro's main loan financing was carried out in late 2010. At the signing of the loan agreement with a bank consortium consisting of six banks, Danske Bank A/S, Danmark, Sverige Filial, DNB Bank ASA, Filial Sverige, Svenska Handelsbanken AB (publ), Nordea Bank AB (publ), Skandinaviska Enskilda Banken AB (publ) and Swedbank AB (publ).
Eniro's debt financing has since implementation in late 2010 been renegotiated and corrected. Renegotiations has taken place June 5, 2012 when a bank left the consortium, and on May 27, 2013 when the total loan was renegotiated. The latest renegotiated loan agreement was effective as of April 24 2015. This renegotiated facility is extended until the end of 2018.
As of December 31, 2015, Eniro's bank debt amounted to SEK 1,465 M spread over SEK 1,295 M in long-term debt and SEK 170 M in current liabilities.
At the end of December 2015, Eniro had an unutilized credit facility of SEK 125 M compared with SEK 53 M at the end of December 2014.
Borrowing costs are capitalized and recognized as an interest expense over the term of the loan. In 2015 the capitalized borrowing cost was SEK 52 M compared to SEK 29 M in 2014.
|Outstanding debt under existing credit facility, all amounts expressed in SEK M||31 Dec. 2015||31 Dec. 2014||31 Dec. 2013||31 Dec. 2012||31 Dec. 2011|
|SEK, granted unutilized credit facilities||125 (RCF)||53 (RCF)||84 (RCF)||-||-|
As of December 31, 2015 Eniro had an interest ladder on interest margin based on the company’s debt level (defined as the consolidated net debt in relation to EBITDA). The interest ladder running from 4.0 percent when net debt to EBITDA exceeds 1.5 times to 3.5 percent when net debt to EBITDA is less than 1.5 times.
The loan agreement contains conditions regarding mandatory prepayments in respect of proceeds from divestment, insurance and issues in capital markets, as well as mezzanine financing. The loan agreement also contains covenants pertaining to mandatory prepayments upon ownership changed in Eniro. The level for ownership changes will be set at more than 30 percent of the votes in Eniro being acquired by any person alone or jointly with any other person(s) who are members of the same group or affiliated or acting together with this person.
More details on Eniro's borrowings is found in the Annual Report 2015 on pages 65-66.