Outstanding debt & facilities

 

In May 2006, Kingfisher issued $466.5m of 7, 10 and 12 year fixed rate notes to US private placement investors (USPP). Cross-currency interest rate derivative contracts were used to swap the proceeds to floating Sterling liabilities based on 6-month LIBOR plus a margin as disclosed in the notes to the 2017/18 Interim Accounts.

  HY 2017/18 FY 2016/17
Debt Principal
outstanding
Maturity
date
Coupon Effective
interest rate
Carrying
amount (£m)
Carrying
amount (£m)
USPP 2018 USD 179m 24/05/18(1) 6.40% 6.40% 139 147

(1)  $179m swapped to floating rate Sterling based on 6 month LIBOR plus a margin using a cross-currency interest rate swap.

The terms of the US Private Placement note agreement and the committed bank facilities require that the ratio of consolidated operating profit, excluding exceptional items, to net interest payable must be no less than 3:1 for the preceding 12 months at half year and full year ends. At the half year end Kingfisher’s ratio was significantly higher than this requirement. 

Committed bank credit facilities

Kingfisher has two syndicated revolving credit facilities provided by a number of banks, comprising £400m that expires in November 2018 and £225m that expires in March 2022. ​

These facilities attract an interest cost based on LIBOR, fixed for periods of between 1 and 6 months. It is available to be drawn down for general corporate purposes, including working capital requirements.