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Covenants

Certain agreements regarding group borrowings contain special clauses which, in the event of failure to comply with certain economic and financial covenants, envisage the lending banks’ option to claim repayment if the company involved does not immediately remedy the infringement of such covenants as required under the terms and conditions of the agreements.

At December 31 2018 all the contractual clauses relating to medium and long term financial liabilities were fully complied with by the CIR group.

Below is a description of the main covenants relating to the borrowings of the operating sub-holding companies outstanding at year end.

Gedi Gruppo Editoriale

  • the Convertible Bond 2014/2019 and related interest payments are not backed by specific guarantees nor are there any covenants or clauses that could trigger early repayment.

Sogefi

  • bond of € 205 million: ratio of consolidated net financial position to consolidated normalised EBITDA of less than or equal to 4; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 3;
  • bond of € 75 million: ratio of consolidated net financial position normalised to EBITDA of equal to or less than 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;   
  • bond of USD 115 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • bond of  25 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;  

KOS

  • loans obtained by the parent company KOS: ratio of consolidated net financial position to EBITDA of less than or equal to 3.5 and ratio of EBITDA to financial charges above or equal to 3; 
  • loan obtained by KOS Care: ratio of net financial position to EBITDA equal to or less than 3.5;
  • loan obtained by Sanatrix Genstione S.r.l.: ratio of consolidated net financial position to EBITDA of less than or equal to 4.