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This excerpt taken from the LUX 20-F filed Jun 29, 2005. New Euro 740 Million and U.S. $325 Million Credit Facility
On June 3, 2004, we entered into a new five-year credit facility with a group of banks for an aggregate of Euro 740 million and an aggregate of U.S. $325 million in favor of Luxottica Group S.p.A. and our subsidiary U.S. Holdings. The new credit facility consists of three tranches: Tranche A is an amortizing term loan of Euro 405 million that is to be used to refinance Luxottica Group S.p.A.’s existing debt as it matures and for other general corporate purposes and will require nine equal quarterly installments of Euro 45 million beginning in June 2007; Tranche B is a term loan of U.S. $325 million that is to be used by U.S. Holdings to finance the acquisition of Cole and will mature in June 2009; and Tranche C is a revolving credit facility equivalent to Euro 335 million, available in Euro or U.S.$, in favor of both Luxottica Group S.p.A. and U.S. Holdings, that is to be used for
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general corporate purposes and will mature in June 2009. At December 31, 2004, U.S. $280 million (Euro 206.8 million) had been drawn from Tranche C by U.S. Holdings to finance the repayment of the existing Cole notes. We may select interest periods of one, two, three or six months with interest accruing on Euro-denominated loans based on the corresponding EURIBOR rate, plus a margin, and U.S. dollar-denominated loans based on the corresponding LIBOR rate, plus a margin of between 0.40 percent and 0.60 percent based on the “Net Debt/EBITDA” ratio, as defined in the agreement. The interest rate on December 31, 2004 was 2.628 percent for Tranche A, 2.456 percent for Tranche B and 2.889 percent on Tranche C. The new credit facility also contains certain financial and operating covenants. We were in compliance with those covenants as of December 31, 2004. The Mandated Lead Arrangers and Bookrunners are ABN AMRO, Banca Intesa S.p.A., Bank of America, Citigroup Global Market Limited, HSBC Bank plc, Mediobanca – Banca di Credito Finanziario S.p.A., The Royal Bank of Scotland plc and UniCredit Banca Mobiliare S.p.A. Unicredito Italiano S.p.A. – New York Branch and Unicredit Banca d’Impresa S.p.A. act as Facility Agents. Under this credit facility, Euro 852 million was outstanding as of December 31, 2004.
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