✨ Financial Statements Notes
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2006
8 BORROWINGS
| 2006 | 2005 | |
|---|---|---|
| $'000 | $'000 | |
| Term borrowings | ||
| Maturing within 1 year | 25,500 | 9,000 |
| Maturing between 1 and 2 years | 66,500 | 80,000 |
| Maturing between 2 and 3 years | 67,000 | - |
| Maturing between 3 and 4 years | - | 80,000 |
| 160,000 | 169,000 | |
| Related party borrowings | ||
| Maturing between 5 and 10 years | 1,600 | 1,600 |
| 1,600 | 1,600 | |
| Total borrowings | 161,600 | 170,600 |
| 2006 | 2005 | |
|---|---|---|
| % | % | |
| Weighted average interest rate on term borrowings | 7.35% | 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 will 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. Unison complied with all covenants for the 2006 and 2005 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 a fixed interest rate of 6% per annum. During the year Unison paid $96,000 in interest to the Hawke's Bay Power Consumers' Trust.
During the year the following entities, in which directors had an interest, provided services to Unison under normal commercial terms.
| 2006 | 2005 | |
|---|---|---|
| $'000 | $'000 | |
| Information Management Services Ltd/K Atkinson | 3 | 5 |
| Vectek Electronics Ltd/K Valentine | 4 | - |
As at balance date the only amounts outstanding were $270 (2005: $660) to Information Services Limited and $1,302 (2005: nil) to Vectek Electronics Ltd 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 Hawke's 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 2006 is estimated at $3,098,038 (2005: $7,147,346).
Unison has a perpetual contract with Siemens (N.Z.) Limited for the provision of maintenance and non-customer generated capital works over the electricity networks in the Taupo and Rotorua regions.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 157
Gazette.govt.nz —
NZ Gazette 2006, No 157
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Notes to Financial Statements for Unison Networks Limited
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