Syndicated loan

In May 2009, Nutreco entered into a three-year committed revolving credit facility of EUR 550 million with an international syndicate of banks. This committed revolving credit facility replaced the former syndicated loan facility of EUR 550 million that would have matured in March 2010. The credit facility may be used for loans in various currencies.

The financial covenants of the syndicated loan facility are related to net senior debt compared to EBITDA and EBITDA compared to net financing costs. EBITDA and net financing costs are calculated on 12-month rolling basis. During 2009, Nutreco remained well within the financial covenants agreed upon with the syndicated loan facility. Reference is made to capital risk management in note 27.

The interest rates are based on Euribor or Libor of the applicable currency, whereas the interest margin is a function of the ratio of net senior debt to EBITDA. In comparison with the former syndicated loan, arrangement fees, interest margin and commitment fees have increased significantly.

At 31 December 2009, an amount of EUR 147.3 million (2008: EUR 301.3 million) was drawn on the EUR 550.0 million syndicated loan facility.

Private placements

In May 2004, Nutreco issued senior notes in a private placement in the United States of America for a total amount of USD 204.0 million. The senior notes consist of three tranches of USD 46.0 million, USD 80.0 million and USD 78.0 million with maturities of five, seven and ten years respectively. The first tranche of USD 46.0 million has matured in May 2009.

In April 2009 Nutreco issued senior notes in a private placement in the United States of America for a total amount of USD 150.0 million. The senior notes consist of three tranches of USD 54.3 million, USD 37.2 million and USD 58.5 million with maturity in five, seven and ten years respectively. The proceeds of the private placement have been used to repay the USD 46.0 million tranche of the private placement which was issued in May 2004 and to repay part of the loans under the syndicated loan facility.

At 31 December 2009, the private placements amount to USD 308.0 million (2008: USD 204.0 million).

The financial covenants of the private placements are related to net senior debt compared to EBITDA and EBITDA compared to net financing costs. EBITDA and net financing costs are calculated on a 12-month rolling basis. Interest rates are fixed for the life of each of the five tranches. During 2009, Nutreco remained well within the financial covenants agreed upon with the private placements. Reference is made to capital risk management in note 27.

Cumulative preference shares ‘A’

Prior to the Initial Public Offering in 1997, Nutreco issued cumulative preference shares ‘A’, which under IFRS classify as interest-bearing borrowings. Under the agreement between Nutreco and the holders of the cumulative preference shares ‘A’, the latter receive a fixed annual dividend of 6.66%, which will be reset in December 2010. At 31 December 2009, the 4,993,200 cumulative preference shares ‘A’ outstanding amount to EUR 54.5 million (2008: EUR 54.5 million).

Uncommitted facilities

In addition to the syndicated loan facility, the private placements and the cumulative preference shares, credit facilities of EUR 276.8 million (2008: EUR 291.0 million) are available to Nutreco.

Of the total facilities of EUR 1,095.1 million, an amount of EUR 455.5 million had been used as at year-end 2009 (2008: EUR 1,038.0 million and EUR 595.4 million, respectively). Reference is made to liquidity risk in note 27.

The average fixed interest rate on the interest-bearing borrowings is 6.60% as at 31 December 2009 (2008: 4.96%) and the average variable interest rate on the interest-bearing borrowings is 6.20% as at 31 December 2009 (2008: 3.85%). The interest rates of the major currencies are ranging from 4.53% to 8.22% (2008: 2.42% to 6.66%) depending on the currency of the interest-bearing borrowings. Reference is made to interest rate risk in note 27.