✨ Financial Statements
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2004
9 BORROWINGS
| 2004 | 2003 | |
|---|---|---|
| $000 | $000 |
Term borrowings
Maturing within 1 - 2 years | 25,000 | 64,500 |
Maturing between 2 and 3 years | - | 40,000 |
Maturing between 3 and 4 years | 80,000 | 50,000 |
Maturing between 4 and 5 years | 80,000 | 50,000 |
| 185,000 | 194,500 |
Related party borrowings
Maturing within 1 year | 1,600 | 1,000 |
Maturing 5 to 10 years | - | 1,000 |
| 1,600 | 2,000 |
Total borrowings | 186,600 | 195,500 |
| 2004 % | 2003 % |
|---|
Weighted average interest rate on term borrowings | 5.94% | 6.89% |
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.
The Company utilises a multi tranche bank facility arrangement for a total of $200m. Components of this facility will be routinely renewed on maturity date. For this reason all borrowings under this facility are reported as term borrowings.
These term borrowings are secured by way of a negative pledge. 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 2003 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.
10 RELATED PARTY TRANSACTIONS
The Hawke's Bay Power Consumers' Trust hold the shares of the Company on behalf of the consumers in their capacity as owners. The Company has issued a debt security to the Trust of $1,600,000 repayable on 7 June 2013. The debt security carries an interest rate of 6% per annum.
A fully imputed dividend of $30,000 was paid to the Hawke's Bay Power Consumers' Trust during the year.
The Company 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 directors provided services under normal commercial terms through their Partnerships/Companies:
| 2004 ($000) | 2003 ($000) | |
|---|---|---|
| IMS/K Atkinson | 12 | 10 |
| Chapman Tripp/F Miller | 4 | - |
| Vectek Electronics/K Valentine | 28 | - |
As at balance date the only amount outstanding was $9,214 which was payable to IMS Limited under normal trading terms.
There were no other related party transactions.
11 COMMITMENTS
The value of contractual capital commitments as at 31 March 2004 is estimated at $1,207,319 (2003: $1,750,000).
The Company has entered into fixed term contracts with Siemens Energy Services 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 a period of up to five years.
The Company has entered into a 10 year contract with Transpower relating to Wairakei Transformers to improve the security of supply in the Taupo region.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 23
Gazette.govt.nz —
NZ Gazette 2005, No 23
✨ LLM interpretation of page content
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Notes to and Forming Part of the Financial Statements for Unison Networks - Lines Business
(continued from previous page)
🏭 Trade, Customs & IndustryBorrowings, Term borrowings, Related party borrowings, Interest rates, Bank loans, Negative pledge, Financial covenants, Debt security, Dividend, Management contract, Director services, Contractual commitments, Maintenance contracts, Supply security