Debt

Mondadori Group’s financial position at 31 December 2012 showed a deficit of euro 267.6 million, an improvement of euro 67.8 million against 2011.

The main reason behind the afore mentioned result lies in the transfer of the interest held by Mondadori Group in the joint venture Random House Mondadori to Media Finance Holding (Bertelsmann group) for euro 54.5 million, as well as in the actions undertaken to optimise current asset management.

It should be pointed out that the net financial position would show a deficit of euro 273.2 million if calculated according to the method recommended by Consob, as it would not include the balance of non-current financial assets.

The main medium/long-term loans are:

• euro 320.0 million for a float rate bank loan with expiry in December 2014, granted by a pool of leading banks with international standing; the loan specifically includes a term loan for euro 150.0 million and a Revolving Facility for euro 170.0 million, still unutilised; some Interest Rate Swaps contracts have been attached to the term loan for the purpose of transforming the float rate into fixed;
• a float rate term loan granted by Intesa Sanpaolo for euro 50.0 million with expiry in May 2013;
• a float rate loan for euro 200.0 million, granted by Intesa Sanpaolo, with expiry in December 2016, broken down into a term loan for euro 50.0 million and a revolving facility for euro 150.0 million, used for a total of euro 45.0 million at 30 December; an Interest Rate Swap contract was attached to part of the Term Loan, with expiry in January 2014;
• a float rate amortising loan for euro 78.0 million, specifically a Term Loan, granted by a pool of leading Italian banks with expiry in June 2015; an Interest Rate Swap Amortising contract is attached to part of the loan;
• a float rate bullet loan for euro 50.0 million, specifically a term loan, granted by Mediobanca, with expiry in December 2017; an Interest Rate Swap contract was attached to the term loan for the purpose of transforming the float rate into fixed;
• a float rate bullet loan for euro 50.0 million, specifically a Revolving Credit Facility, granted by Mediobanca in July 2011 with expiry in December 2017, utilised for euro 15.0 million at 31 December.