NOTES TO THE ACCOUNTS
NOTE 18 – CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR continued
ii) Included within the total balance above is the following: Facility
Interest Rate %
Repayment*
5.54
Quarterly
5.40
Quarterly
5.53
Quarterly
Tranche 3
5.41
Quarterly
Tranche 4
4.39
Quarterly
Tranche 5
1 month LIBOR +0.21%
Quarterly
National Westminster Bank Plc Tranches 1 and 2
£’000 100,000
Tranche 3 Barclays Bank Plc Tranches 1 and 2
2011
2010
£’000
£’000
35 years (to 2043) 35 years (to 2043)
31,779
31,779
20,230
20,230
35 years (to 2043) 35 years (to 2043) 34 years (to 2043) 34 years (to 2043)
20,413
20,413
10,268
10,268
10,000
10,000
10,000
–
102,690
92,690
–
–
102,690
92,690
Term
65,000
Bank loans repayable within one year Bank loans repayable after more than one year
* No repayments of capital were made or due during the year. Capital repayments commence in 2013/14 for loans totalling £82,690,000 and 2017/18 for the remaining £20,000,000. During the year ended 31 July 2008 the University consolidated its existing bank loans and arranged further finance to support its strategic aims under the Finance Strategy and Infrastructure Strategy. These bank loans are unsecured. However, the University has a negative pledge obligation to each of the lenders, whereby it will not grant any security over any of its assets. The University is also not permitted to dispose of any of its assets, other than below certain financial limits and in the ordinary course of its business, without each lender’s written consent. Both bank loans consist of A and B facilities. Both A facilities were drawn during the year ended 31 July 2008 in three tranches and the interest rates fixed, via the interest rate swap transactions mentioned below. During the year ended 31 July 2009 £10 million of the Barclays B facility was drawn and the interest rate was fixed, again via the interest rate swap transactions mentioned below. During the year ended 31 July 2011 a further £10 million of the Barclays B facility was drawn at the variable interest rate of 1-month LIBOR +0.21%, which will become fixed at 4.66% from 1 August 2013, again via the interest rate swap transactions as mentioned below. The interest rate swap transaction with each bank is for the total amount of each loan drawn. Each swap transaction incorporates a fixed rate, which is compared to a variable 3 month LIBOR. These swap transactions are for the term of the loans. The University also has three further short term underlying basis swap agreements in place covering its total borrowing where the University pays interest at 3-month LIBOR on the principal and receives interest at 1-month LIBOR plus a spread of the margin. The new agreements put in place in 2010/11 will mature in April and July 2012.
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UNIVERSITY OF EXETER:
F I N A N C I A L S TAT E M E N T S F O R T H E Y E A R E N D E D 3 1 J U LY 2 0 1 1