Interest rates paid during the year ranged from 2.7% to 6.9%.
The Group has the following loan facilities with interest priced at between call and 180 day rates:
(i) $225,000,000 revolving loan expiring in under one year
(ii) $125,000,000 revolving loan expiring in one to two years
(iii) $83,182,000 table loan maturing in ten years
(iv) $22,250,000 table loan maturing in fifteen years
(v) AUD 180,000,000 revolving loan expiring in two to five years
All of the Group’s borrowings are unsecured. The Group borrows under a negative pledge arrangement with its bank loan providers, which with limited exceptions does not permit the Group to grant any security interest over its assets. The negative pledge deed requires the Group to maintain certain levels of shareholders’ funds and operate within defined performance and debt gearing ratios. The banking arrangements may also create restrictions over the sale or disposal of certain assets unless the bank loans are repaid or renegotiated, specifically:
- Facilities (i), (ii) and (v) require a continuation of the existing business operations. There are no costs to cancel the facilities.
- Facility (iii) requires continued ownership by the Group of at least 30% in relation to Tararua Stage III wind generation assets with a book value of $181,735,000. There are no costs to cancel the facility.
Throughout the period the Group has complied with all debt covenant requirements as imposed by lenders (see above for requirements).
Subsequent to balance date the Group has accepted offers to refinance the facility expiring in under one year and extend it by $25,000,000 to $250,000,000. This facility is currently being documented and will mature in two to five years.
A subsidiary company has entered into a fully defeased cross border lease in relation to generation assets with a book value of $30,756,000. The lease liability is not recognised in these financial statements as all obligations have been prepaid to the respective lessors. This creates restrictions on the disposal of the asset unless the subsidiary company holding the assets is part of the disposal. The lease expires in January 2018 and is subject to a potential termination payment, up to a maximum value of $4,629,000 (2010: $4,882,000), in the event that the subsidiary wishes to terminate the lease.