Financial Structure
The Group’s policy is to maintain a
strong capital base so as to maintain investor, creditor, and market
confidence and sustain future development of the business. With an
equity ratio of 36% as of December 31, 2007, Symrise maintains a solid
base for future financial performance.
After the IPO, the previous group financing arrangement was replaced by a more favorable financing arrangement better suited to the new circumstances. The financing banking syndicate, under the lead management of Barclays Capital and Commerzbank AG, provided the Group with long-term loans of € 500 million and a credit facility of € 300 million, of which € 128 million had been drawn as of December 31, 2007.
In addition to the credit facility, the company negotiated a € 20 million bilateral credit line with Commerzbank. The purpose of the credit line was to cover short term cash needs instead of drawing funds from the revolving facility.
Starting with a margin of 60 basis points above Euribor/Libor, as a result of the performance of the Group, we have been able to apply the margin grid, lowering the margin to 50 basis points above Euribor/Libor at the year end. Along with the lower level of indebtedness due to repayments of the revolving facility, this will lead to lower financing costs in the future.
Collateral in the form of real property, e.g. rights of lien, was not required under the new financing arrangement. Further details of the Group’s net assets and financial position can be found in the Notes to the Financial Statements.