16. Bank borrowings
Bank borrowings comprise the following at December 31:
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|
|
2017 |
||||||
|
|
|
|
|
Non-Current |
|
Current |
|
|
|
|
|
|
|
Amount |
|
Amount |
|
|
|
|
|
Limit |
|
Drawn Down |
|
Drawn Down |
|
Total |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Borrowings carried at amortised cost: |
|
|
|
|
|
|
|
|
|
Credit facilities |
|
200,000 |
|
— |
|
— |
|
— |
|
Other loans |
|
|
|
— |
|
1,003 |
|
1,003 |
|
Total |
|
|
|
— |
|
1,003 |
|
1,003 |
|
|
|
2016 |
||||||
|
|
|
|
|
Non-Current |
|
Current |
|
|
|
|
|
|
|
Amount |
|
Amount |
|
|
|
|
|
Limit |
|
Drawn Down |
|
Drawn Down |
|
Total |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Borrowings carried at amortised cost: |
|
|
|
|
|
|
|
|
|
Borrowings to finance investments |
|
76,000 |
|
8,198 |
|
64,545 |
|
72,743 |
|
Credit facilities |
|
453,000 |
|
171,260 |
|
166,950 |
|
338,210 |
|
Discounted bills and notes |
|
8,000 |
|
— |
|
719 |
|
719 |
|
Other loans |
|
10,000 |
|
15 |
|
9,604 |
|
9,619 |
|
Total |
|
|
|
179,473 |
|
241,818 |
|
421,291 |
On February 15, 2017, the Company issued senior notes with a principal amount of $350,000 thousand (see Note 18 for further details). The proceeds were used primarily to repay existing indebtedness, including borrowings to finance investments and certain credit facilities and other loans.
Amended Revolving Credit Facility
On February 15, 2017, Ferroglobe PLC and its subsidiary Globe Specialty Metals, Inc. (collectively, together with certain subsidiaries of Ferroglobe party thereto from time to time as co-borrowers, the “Borrowers”), entered into an agreement to amend an existing revolving credit facility held by Globe (the “Amended Revolving Credit Facility”).
The Amended Revolving Credit Facility provides for borrowings up to an aggregate principal amount of $200,000 thousand to be made available to the Borrowers in US dollars. Multicurrency borrowings under the Amended Revolving Credit Facility are available in Euros, Pound Sterling and such other mutually agreeable currencies to be determined in an aggregate amount not to exceed $100,000 thousand. The borrowings under the Amended Revolving Credit Facility will mature on August 20, 2018. Subject to certain exceptions, loans under the Amended Revolving Credit Facility may be borrowed, repaid and reborrowed at any time.
At Ferroglobe’s option, loans under the Amended Revolving Credit Facility bear interest based on LIBOR (“LIBOR Rate Loans”) or the administrative agent’s base rate (“Base Rate Loans”) plus 4.00% (in the case of LIBOR Rate Loans) and 3.00% (in the case of Base Rate Loans). Interest on Base Rate Loans is payable quarterly in arrears. Interest on LIBOR Rate Loans is payable at the end of each applicable interest period (one, two, three or six month periods) (or at three month intervals if earlier).
Immediately subsequent to the amendment, on February 15, 2017, borrowings under the Amended Revolving Credit Facility comprised US dollar loans of $84,766 thousand and Euro loans of €29,540 thousand. These loans were repaid over the course of the year ended December 31, 2017.
Subsequent to December 31, 2017, Ferroglobe entered into a new revolving credit facility (see Note 30 for further details).
Borrowings to finance investments
Borrowings to finance investments include bank borrowings, secured by guarantee, arranged to finance investments in non-current assets. There were no borrowings to finance investments at December 31, 2017. Borrowings as at December 31, 2016 were as follows:
|
|
|
2016 |
||||||||
|
|
|
|
|
Limit |
|
Non-Current |
|
Current |
|
Total |
|
|
|
Maturity |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Corporate finance |
|
2021 |
|
14,000 |
|
— |
|
13,350 |
|
13,350 |
|
Sundry investments in South Africa |
|
2018 |
|
25,000 |
|
— |
|
23,840 |
|
23,840 |
|
Syndicated financing for sundry investments in France |
|
2018 |
|
17,000 |
|
8,198 |
|
8,199 |
|
16,397 |
|
Investments in MangShi plant |
|
2019 |
|
14,000 |
|
— |
|
13,176 |
|
13,176 |
|
Acquisition of SamQuarz (Pty.), Ltd. |
|
2018 |
|
6,000 |
|
— |
|
5,781 |
|
5,781 |
|
Others |
|
|
|
— |
|
— |
|
199 |
|
199 |
|
Total |
|
|
|
76,000 |
|
8,198 |
|
64,545 |
|
72,743 |
The agreements for borrowings to finance investments include conditions relating to the achievement of certain financial and equity ratios based on the separate financial statements of the legal entity that is party to the agreement. With the exception of the syndicated credit facilities of FerroPem, S.A.S., Ferroglobe was not in compliance with these covenants and therefore the balances outstanding were presented as current as at December 31, 2016.
Foreign currency exposure of bank borrowings
The breakdown by currency of bank borrowings at December 31, is as follows:
|
|
|
2017 |
||||
|
|
|
Non-Current |
|
Current |
|
|
|
|
|
Amount |
|
Amount |
|
|
|
|
|
Drawn Down |
|
Drawn Down |
|
Total |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Borrowings in US Dollars |
|
— |
|
992 |
|
992 |
|
Borrowings in other currencies |
|
— |
|
11 |
|
11 |
|
Total |
|
— |
|
1,003 |
|
1,003 |
|
|
|
2016 |
||||
|
|
|
Non-Current |
|
Current |
|
|
|
|
|
Amount |
|
Amount |
|
|
|
|
|
Drawn Down |
|
Drawn Down |
|
Total |
|
|
|
US$'000 |
|
US$'000 |
|
US$'000 |
|
Borrowings in Euros |
|
54,458 |
|
179,900 |
|
234,358 |
|
Borrowings in US Dollars |
|
125,015 |
|
32,283 |
|
157,298 |
|
Borrowings in other currencies |
|
— |
|
29,635 |
|
29,635 |
|
Total |
|
179,473 |
|
241,818 |
|
421,291 |
Contractual maturity of non-current bank borrowings
There were no non-current bank borrowings outstanding at December 31, 2017.
The contractual maturity of non-current bank borrowings at December 31, 2016, was as follows:
|
|
|
2016 |
|
||
|
|
|
2018 |
|
Total |
|
|
|
|
US$'000 |
|
US$'000 |
|
|
Borrowings to finance investments |
|
8,198 |
|
8,198 |
|
|
Credit facilities |
|
171,260 |
|
171,260 |
|
|
Other loans |
|
15 |
|
15 |
|
|
Total |
|
179,473 |
|
179,473 |
|