This note provides information about the contractual terms of the group’s interest-bearing loans and borrowings which are measured at amortised cost. For more information about the group’s exposure to capital risk, including interest rates, foreign currency and liquidity risk, see Note 5 Financial risk management and exposures.
The term loan and revolving credit facilities agreement of NOK 3 000 million established May 2011; originally to mature in May 2016 was cancelled and refinanced per 8 July 2015. The new loan agreement, a revolving credit facility of NOK 2 000 million, is maturing in July 2020. The facility is provided by a syndicate of high quality international banks. The revolving credit facility was undrawn per 31 December 2015. The terms and conditions include restrictions which are customary for these kinds of facilities, including inter alia negative pledge provisions and restrictions related to acquisitions, disposals and mergers. There are also certain provisions of change of control included in the agreement. There are no restrictions for dividend payments. The facility is unsecured.
The financial covenants are based on three sets of key financial ratios; an equity ratio based on consolidated total borrowings/consolidated total equity, a cash covenant calculated by consolidated total borrowings less consolidated net current operating assets and consolidated cash and cash equivalent assets and an interest coverage ratio based on consolidated EBITDA/consolidated finance costs. The financial covenants are tested on a quarterly basis. As of 31 December 2015 the company is in compliance with all covenants. The margin applicable to the facility is based on a price grid determined by the gearing ratio.
|Amounts in NOK million||Currency||Nominal currency value||Interest margin||Maturity date||Interest terms|
|Revolving credit facility||Multi-currency||2 000||2.00%||8 July 2020||IBOR + margin1)|
|Total credit facility||2 000|
1) The margin applicable to the facility is decided by a price grid based on the gearing ratio. Commitment fee is 40 percent of the margin.