Axactor Annual Report 2016

Note 23 Borrowings and other interest bearing debt As of 31 December 2016, the Company had long-term loans of NOK 135 million relating to the financing of the Axactor Norway (former "IKAS") acquisition, EUR 17,1 million relating to the Altor acquisition and EUR 10,7 million relating to purchase of the Spanish Portfolios. The loans were drawn under the EUR 50 million Revolving Credit Facility with DNB and Nordea. The Facility agreement was entered into in March 2016 with repayment date in March 2019. All material subsidiaries of the group guarantee the commitments under the facility and have also granted a share pledge as part of the security package for this facility. Italian subsidiaries are not a part of the agreement and has separate local funding consisting of local overdraft facilities and portfolio acquisition facilities in total 53 million were 27 million was utilized at year end. Overdraft facilities have negative pledge and portfolio acquisition facilities are secured trough pledge in the underlying portfolios. As of December 31st, the company is in breach with its loan covenants and are in negotiations with the lending banks (DnB/NORDEA) to get a waiver in place. As a consequence of this all drawings under the facility is classified as short term at year end 2016. The breach has been resolved in 2017. SEK thousand Currency Interest rate Face value Carrying amount Year of maturity Balance at 1 January 2016 SEK 5,000 2016 New issues DnB/NORDEA NOK Nibor 4 % TNOK 135.000 142,290 2019 DnB/NORDEA EUR EURIBOR 4 % EUR 28.700 274,570 2019 Italy 1) EUR EURIBOR + 2 % - 3,5 % €6.932 k 66,318 2016-2022 Loan through acquisition of subsidiaries Spain EUR 4 % €326 k 3,120 2017 Italy 1) EUR EURIBOR + 2 % - 3,5 % €22.550 k 277,919 2016-2022 Axactor Norway NOK 3 % - 5,95 % TNOK 680 678 2017-2020 Germany 2) EUR EURIBOR + 3 % - 8,45 % €13.218 127,314 2) Repayments Convertible loan By Norrlandsfonden -5,000 Axactor Norway NOK TNOK 680 -678 Italy EUR €3.789k -36,249 DnB/NORDEA EUR EUR 925.000 -8,850 Germany 2) EUR EURIBOR + 3 % - 8,45 % €13.218 -127,314 2) Other movements Capitalized loan fees -14,552 Amortizied loan fees on loans 3,397 Currency translations Balance at 31 December 2016 707,963 1) Relates to different facilities and draw downs with an interest between EURIBOR + 2 % - 3,5 %. 2) Relates to different facilities and draw downs with an interest between EURIBOR 3 % - 8,45 %, which all have been repaid in fourth quarter 2016. The capitalized loan fees are allocated and classified together with the loan and is amortized over the period until maturity of the loan (March 2019). The amortised loan fee are classified as Interest costs. SEK thousand 31.12.2016 31.12.2015 Pledeged bankaccounts 4,000 4,000 Axactor AB | Annual report 2016 55