| Bond overview This section offers some important information for debt investors. The ability to flexibly use different sources of funds plays a key role in the financing of the Lonza Group. Lonza has therefore established a number of debt instruments. |
The net debt comprises:
| million CHF | 2008 | 2009 | ||
|---|---|---|---|---|
| Long-term debt | ||||
| Bonds | 299 | 297 | ||
| Syndicated loan | 498 | 497 | ||
| Due to banks and others: | ||||
| . Banks | 13 | 22 | ||
| . Others | 74 | 87 | 1 | 23 |
| Leasing | 10 | 7 | ||
| Total | 894 | 824 |
| Straight bond (2009-2013) Amount: CHF 300 million, due 27 May 2013. Interest: 3.75% p.a. Annual interest expenses amount to CHF 11.25 million. Following please find the prospectus for the straight bond. |
| Syndicated loan In order to finance the acquisition of the Biopharma and Bioproducts businesses from Cambrex, Lonza signed a syndicated loan of CHF 500 million with a consortium of banks in December 2006; the contract term is five years. It is based on floating rates (libor + margin depending on a margin grid) and was drawn down in February 2007. Lonza hedged the interest rate for the whole five years via interest rate swaps. |
Short-term debt (floating interest rates)
| million CHF | 2008 | 2009 | |
|---|---|---|---|
| Due to banks and other financial institutions | 585 | 46 | |
| Others | 176 | 169 | |
| Long-term debt due within one year | |||
| 391 | 0 | |
| 0 | 300 | |
| Total | 1 152 | 515 | |
| Total debt | 2 046 | 1 339 |
Loans and advances (floating interest rates)
| million CHF | 2008 | 2009 | |
|---|---|---|---|
| Long-term loans and advances | (9) | (32) | |
| Short-term loans and advances | (2) | (1) | |
| Cash and cash equivalents | (566) | (140) | |
| Total | (577) | (173) | |
| Net debt | 1 469 | 1 166 |
| Loans and advances increased in 2009 compared with the prior year, mainly due to the loan granted to the TL Biopharmaceutical Ltd. joint venture. |
Breakdown of debt by currencies
| million CHF | 2008 | 2009 | ||||
|---|---|---|---|---|---|---|
| Average | Average | |||||
| interest | interest | |||||
| rates | rates | |||||
| % | % | % | % | |||
| CHF | 2.63 | 83 | 1 706 | 2.54 | 83 | 1 108 |
| EUR | 4.60 | 0 | 1 | 1.95 | 0 | 1 |
| USD | 3.30 | 12 | 249 | 2.70 | 16 | 221 |
| Other | 3.75 | 5 | 90 | 1.20 | 1 | 9 |
| Total | 100 | 2 046 | 100 | 1 139 |
Breakdown of loans and advances by currencies
| million CHF | 2008 | 2009 | ||||
|---|---|---|---|---|---|---|
| Average | Average | |||||
| interest | interest | |||||
| rates | rates | |||||
| % | % | % | % | |||
| CZK | 8.00 | 18 | 2 | 8.00 | 3 | 1 |
| US dollar | 3.00 | 82 | 9 | 2.50 | 97 | 32 |
| Total | 100 | 11 | 100 | 33 |
| Interest rates are floating rates. |
Other short-term liabilities
| million CHF | 2008 | 2009 |
|---|---|---|
| Short-Term Provisions | 21 | 39 |
| Accrued liabilities and other payables | 368 | 265 |
| Other interest-free liabilities | 238 | 85 |
| Accrued interest payables | 11 | 12 |
| Total | 638 | 401 |
| "Accrued liabilities and other payables" include accruals and deferred income, such as down-payments from customers and the fair values of financial instruments. In other interest-free liabilities, payments received from customer funding are included.The decrease in "Other interest-free liabilities" is due to the decrease in the customer funding liabilities relating to the sales of Lonza Singapore Biologics Pte Ltd to Genetech. |
| Straight bond (2010-2016) Amount: CHF 400 million, due 2 June 2016. Interest: 3.00 % p.a. payable on 2 June, for the first time on 2 June 2011. The annual interest expenses amount to CHF 12.0 million. Following please find the prospectus for the straight bond. |
