Financial Statements

Notes to the Consolidated Financial Statementsfor the year to 31 December 2008

21. Debenture loans

2008
£m
2007
£m
Unsecured  
Floating rate notes 2008 1.4
9.00% US$35m notes 2009 24.7 18.5
5.73% US$110m notes 2009 76.4 55.2
5.53% US$75m notes 2011 52.1 37.6
6.625% £250m guaranteed bonds 2012 (1) (2) 254.5 245.8
6.21% US$70m notes 2012 48.8 35.4
6.80% £30m notes 2012 30.0 30.0
4.72% US$28m notes 2013 18.6 13.2
6.31% US$110m notes 2014 76.5 55.4
6.03% US$175m notes 2014 121.5 87.7
4.98% US$38m notes 2015 25.2 17.7
6.72% US$30m notes 2017 21.1 15.4
5.29% US$30m notes 2018 19.7 13.9
6.375% £200m bonds 2019 (2) 200.0 197.5
Carrying value 969.1 824.7
     
Fair value (2) 308.8 837.9

(1) The guarantee in respect of the 6.625% £250m guaranteed bond due 2012 was released on 16 January 2004.

(2) The fair value for all debenture loans has been based on the prices indicated for the two listed Eurobonds as at 31 December 2008 on the basis that the discount applied by the market to the listed bonds could be equally applicable to all of the Group's debt. This discount reflected the uncertainty in the market surrounding the Group's debt negotiations at the balance sheet date, which has subsequently been resolved on the signing of the Override Agreement in April 2009.

2008
£m
2007
£m
Repayable  
Within one year or on demand 101.1 1.4
Total falling due in more than one year 868.0 823.3

Interest rates and currencies of debenture loans:

Fixed rate debt
Floating rate
£m
Fixed rate
£m
Weighted average interest rate
%
Weighted average time until maturity
years
31 December 2008  
Sterling (3) 484.5 6.53 6.2
US dollars 484.6 6.04 4.4
969.1 6.29 5.5
31 December 2007  
Sterling (3) 1.4 473.3 6.53 7.2
US dollars 350.0 6.05 5.4
1.4 823.3 6.33 6.4

(3) Interest on £100.0m (2007: £100.0m) of the 6.625% £250m guaranteed bond 2012 has been swapped from 6.625% to floating rate based on US dollar LIBOR applicable to periods of three months. The above table does not reflect the impact of these swaps.

On 24 December 2008 the Group announced that the providers of its bank facilities and its private placement note holders had agreed to defer the testing date into 2009 of certain financial covenants which had been due for testing on 31 December 2008. Had this deferral not been obtained, the Group would have been in breach of an interest cover covenant at the year end which could have resulted in certain debenture loans being presented as repayable on demand in these financial statements. However, as a result of this deferral, the Group remained in full compliance with all its existing covenants and loan terms in the current and preceding period. The Override Agreement signed on 7 April 2009 includes new financial covenants with which the Group is fully compliant which supersede those set out in the old financing agreements, including the covenant for which the test was deferred into 2009 – see note 37.