Note 14 – Net Debt Audited

The net debt comprises:

 

 

 

Syndicated Loan

The Syndicated loan facility of CHF 700 million, of which CHF 100 million (2015: not used) was used as of 31 December 2016, has floating interest rates (CHF LIBOR + margin, depending on margin grid). Lonza has not hedged the related interest rate risk. The entire loan facility is granted until 2016, CHF 637 million until 2017 and CHF 614 million until 9 September 2018.

The syndicated loan agreement contains a financial covenant that is based on Lonza’s net debt / EBITDA ratio. The Group was released in 2015 from this covenant as the net debt / EBITDA ratio fell below a defined threshold.

German Private Placement 

Dual-currency German private placement (Schuldscheindarlehen) of EUR 34 million (2015: EUR 34 million) and USD 12 million (2015: USD 12 million) tranches carry fixed and floating interest rates (LIBOR / EURIBOR + margin) and are repayable in 2017 and 2019. The carrying amount is CHF 49 million as of 31 December 2016 (2015: CHF 49 million), of which CHF 44 million is disclosed as current debt. There were no repayments in 2016 (2015: CHF 155 million).

Others 

Other non-current debt comprises industrial revenue bonds of USD 142 million issued by governmental institutions in the United States (repayable in 2020, 2022, 2025 and 2030). The private placement of senior notes amounting to USD 158 million with certain institutional investors is classified as current as of 31 December 2016.