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Retrieving Data

Note 25

For the Year Ended 31 March 2011

UNSECURED BANK LOANS 
GROUP PARENT
2011 2010 2011 2010
$000 $000 $000 $000
New Zealand dollar facilities
Repayment terms:
One to two years 31,900 54,000 31,900 54,000
Two to five years - - - -
Over five years 105,432 91,104 105,432 91,104
Facility establishment costs (4,632) (2,161) (4,632) (2,161)
132,700 142,943 132,700 142,943
Weighted average interest:
One to two years 3.1% 3.0% 3.1% 3.0%
Two to five years - - - -
Over five years 3.5% 3.2% 3.5% 3.2%
3.4% 3.2% 3.4% 3.2%
Australian dollar facilities
Repayment terms:
Less than one year - 193,904 - -
One to two years - - - -
Two to five years 203,627 - - -
Over five years - - - -
Facility establishment costs - - - -
203,627 193,904 - -
Weighted average interest:
Less than one year - 4.6% - -
One to two years - - - -
Two to five years 6.1% - - -
Over five years - - - -
6.1% 4.6% - -
Total bank loans 336,327 336,847 132,700 142,943
Current portion - 193,904 - -
Non-current portion 336,327 142,943 132,700 142,943
336,327 336,847 132,700 142,943
       

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.