Notes to the accounts

18 Borrowing summary

	Group			Company
	2004 £m	2003 £m		2004 £m	2003 £m
Gross debt falling due within:
Less than one year	0.3	0.8		0.4	-
One to two years	52.2	0.1		52.1	-
Two to five years	0.2	56.3		-	56.1
Over five years	140.6	137.9		138.1	137.3
	193.3	195.1		190.6	193.4
Comprising:
Secured bank loan	2.8	1.0		-	-
Unsecured loan notes - 1996 $100m	52.0	56.1		52.0	56.1
Unsecured loan notes - 2000 $75m	56.7	56.3		56.7	56.3
Unsecured loan notes - 2013 $100m and €125m	81.5	81.0		81.5	81.0
Unsecured bank loans	0.3	0.7		0.4	-
	193.3	195.1		190.6	193.4

The group has various borrowing facilities available to it. The undrawn committed facilities available at 31 December 2004 in respect of which all conditions precedent had been met at that date were as follows:

Borrowing facilities

				2004 £m	2003 £m
Expiring in one year or less				73.1	43.5
Expiring in one to two years				-	29.5
				73.1	73.0

Secured bank loan

Bank loans are secured by a fixed charge over property at two of the group's subsidiaries. Of these £2.0m is repayable by instalments until December 2012 and £0.8m by instalments until December 2014. These loans comprise mainly of two US dollar loans. The interest rate is fixed at 7.5% on one and is based on LIBOR plus a small margin on the other.

Unsecured loan notes

In 1996 the company issued $100m of loan notes repayable on 15 July 2006 at par. The loan notes bear interest at an average rate of 7.72%, which is fixed until redemption. In 1996 the company entered into treasury locks to underwrite the interest rate at which the loan notes were issued. This produced net proceeds of $1.4m. These proceeds are amortised over the period of the loan notes in the profit and loss account. After taking these proceeds into account, the average net rate of interest on the loan notes is 7.5%.

In September 2000 the company issued $75m of loan notes repayable on 13 September 2010 at par. The interest rate on these notes is 8.23%. On issue, a swap arrangement from US dollars to euros resulted in a euro debt of €80.4m at 6.89%, which is fixed until redemption of the loan notes.

In October 2003 the company issued $100m and €25m of loan notes repayable on 15 October 2013. The interest rate on these notes is 6.08% and 5.56% respectively. On issue a swap arrangement from US dollars to euros resulted in a combined euro debt of €115.5m with an average rate of 5.62%. The rate remains fixed until redemption.

Unsecured bank loans

These loans comprise mainly multi-currency revolving credit facilities and interest is based on LIBOR plus a small margin. The weighted average period to maturity of these facilities is one year.

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