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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 2016 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 € 220 million: ratio of consolidated net financial position to consolidated normalised EBITDA 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 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

  • a line of credit obtained by the parent company KOS: ratio of consolidated net financial position to consolidated EBITDA of less than 3.5;
  • loan obtained by Istituto di Riabilitazione Santo Stefano S.r.l.: ratio of net financial position to EBITDA lower than 4.25; 
  • loan obtained by Istituto di Riabilitazione Santo Stefano S.r.l.: ratio of net financial position to EBITDA lower than 4;
  • loan obtained by Residenze Anni Azzurri S.r.l.: ratio of net financial position to EBITDA lower than 4;
  • loan obtained by Clearmedi Ltd: Tangible Net Worth Greater than INR 110 million, Turnover greater than INR 320 million and a Gearing lower than 11;
  • loan obtained by Clearmedi Ltd.: Tangible Net Worth greater than INH 100 million and a Gearing lower than 7,5.