✨ Financial Statements and Related Party Transactions
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2005
8 BORROWINGS
| 2005 $\000 | 2004 $\000 | |
|---|---|---|
| Term borrowings | ||
| Maturing within 1 year | 9,000 | 25,000 |
| Maturing between 1 - 2 years | 80,000 | - |
| Maturing between 2 and 3 years | 80,000 | 80,000 |
| Maturing between 3 and 4 years | - | - |
| Maturing between 4 and 5 years | - | 80,000 |
| 169,000 | 185,000 | |
| Related party borrowings | ||
| Maturing within 1 year | - | - |
| Maturing 5 to 10 years | 1,600 | 1,600 |
| 1,600 | 1,600 | |
| Total borrowings | 170,600 | 186,600 |
| 2005 % | 2004 % | |
|---|---|---|
| Weighted average interest rate on term borrowings | 7.13% | 7.13% |
| Effective interest rate related party | 6.00% | 6.00% |
All term borrowings are bank loans and interest rates for these borrowings are based on the bank bill rate plus a margin. Unison utilises a multi tranche bank facility arrangement for a total of $\$200m. Components of this facility are term borrowings which be routinely renewed on maturity date. For this reason all borrowings under this facility are reported as term borrowings.
The bank facility is unsecured and has the benefit of a negative pledge and cross guarantee. The facility is subject to various covenants such as limitations on long-term indebtedness, leverage and other ratios. The Company complied with all covenants for the 2005 and 2004 financial years.
The related party loan is from the Hawke’s Bay Power Consumers’ Trust and is unsecured. This loan is renewable on 01 June 2013.
9 RELATED PARTY TRANSACTIONS
The Hawke’s Bay Power Consumers’ Trust holds the shares of Unison on behalf of the consumers in their capacity as owners. Unison has issued a debt security to the Trust of $\$1,600,000 repayable on 1 June 2013. The debt security carries an interest rate of 6% per annum. During the year Unison paid $\$96,000 in interest to the HBPCT.
Unison operates a management contract for Centralines Limited, an electricity lines company based in Waipukurau. This contract provides for executive, financial and technical managerial services for Centralines Limited. For commercial reasons the value of this contract is not disclosed.
During the year the following entities, in which directors had an interest, provided services to Unison under normal commercial terms.
| 2005 $\000 | 2004 $\000 | |
|---|---|---|
| Information Management Services Ltd/K Atkinson | 11 | 12 |
| Chapman Tripp/F Miller | - | 4 |
| Vectek Electronics Ltd/K Valentine | - | 28 |
As at balance date the only amount outstanding was $\$660 (2004: $\$9,214) which was payable to Information Management Services Limited under normal trading terms.
An operating lease agreement to supply backup generation facilities was entered into during the year on normal commercial terms between Unison and the Hawkes Bay District Health Board, of which Mrs H Walker and Mr K Atkinson are directors.
There were no other related party transactions.
10 COMMITMENTS
The value of contractual capital commitments as at 31 March 2005 is estimated at $\$7,147,346 (2004: $\$1,207,319).
Unison has entered into fixed term contracts with Siemens Limited for the provision of maintenance and non-customer generated capital works over the electricity networks in the Taupo and Rotorua regions. These contracts are for periods of up to 4 years.
Unison has entered into a contract with Transpower relating to Wairakei Transformers to improve the security of supply in the Taupo region. This contract has 9 years to run.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 143
Gazette.govt.nz —
NZ Gazette 2005, No 143
✨ LLM interpretation of page content
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Unison Networks Limited - Notes to Financial Statements
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🏭 Trade, Customs & IndustryFinancial reporting, Borrowings, Related party transactions, Commitments