AU OPTRONICS CORP | CIK:0001172494 |

 

Bank or agent bank		Durations		December 31, 2017				December 31, 2016
				(in thousands)
Syndicated loans:
Bank of Taiwan and others		From Feb. 2015 to Feb. 2020		$	22,704,000				25,800,000
Bank of Taiwan and others		From Apr. 2016 to Apr. 2021			37,500,000				25,000,000
Bank of Taiwan and others		From May 2017 to May 2022			10,000,000				-
Bank of Taiwan and others		From Jan. 2014 to Dec. 2017			-				23,672,000
Bank of Taiwan and others		From Feb. 2013 to Mar. 2017			-				7,596,757
First Commercial Bank and others		From Feb. 2016 to Feb. 2019			2,395,868				3,000,000
Standard Chartered Bank and others		From Sep. 2014 to Jun. 2017			-				2,358,776
Bank of China and others		From Nov. 2015 to Nov. 2023			27,800,680				21,216,394
Unsecured loans		From Apr. 2012 to Apr. 2022			10,203,390				16,005,955
Mortgage loans		From Apr. 2016 to Apr. 2032			441,035				95,727
					111,044,973				124,745,609
Less: transaction costs					(436,963)				(482,989)
					110,608,010				124,262,620
Less: current portion					(8,155,234)				(18,074,627)
				$	102,452,776				106,187,993
Unused credit facility				$	37,220,839				43,228,323
Interest rate range					1.25%~ 5.16%				1.09%~ 4.90%

 

The Company entered into the aforementioned long-term loan arrangements with banks and financial institutions to finance capital expenditures for purchase of machinery and equipment, and to fulfill working capital, as well as to repay the matured debts. A commitment fee is negotiated with the leading banks of syndicated loans, and is calculated based on the committed-to-withdraw but unused balance, if any. No commitment fees were paid for the year ended December 31, 2017.

 

These credit facilities contain covenants that require the Company to maintain certain financial ratios, calculating based on the Company’s annual consolidated financial statements prepared in accordance with Taiwan Financial Reporting Standards, such as current ratio (defined as current assets divided by current liabilities excluding (a) current portion of long-term debt or (b) current portion of long-term debt and equipment and construction payable), leverage ratio (calculated as the sum of short-term borrowings plus current portion of long-term debt and long-term debt to consolidated tangible net worth), interest coverage ratio, tangible net worth and others as specified in the loan agreements.

 

As of December 31, 2017 and 2016, the Company complied with all financial covenants under each of the loan agreements.

 

The reconciliation of liabilities to cash flows arising from financing activities was as follows:

 

								Non-cash changes
		January 1, 2017			Cash flows			Changes in exchange rate			Effect of change in consolidated entities			Amortization on transaction costs			December 31, 2017
		(in thousands)
Short-term borrowings		$	526,723			2,903,927			(6,274)			-			-			3,424,376
Long-term borrowings			124,262,620			(12,571,198)			(1,142,980)			(84,187)			143,755			110,608,010
Guarantee deposits received			838,263			(34,654)			34,873			-			-			838,482
Total liabilities from financing activities		$	125,627,606			(9,701,925)			(1,114,381)			(84,187)			143,755			114,870,868

 

Refer to note 36 for detailed information of exposures to interest rate, currency, and liquidity risk. Refer to note 39 for assets pledged as collateral to secure the aforementioned long-term borrowings.