Page 91 - Paragon Annual Report 2

Notes to the consolidated financial statements (continued) 19 Borrowings (continued)
Bank loans
On 16 December 2016, a subsidiary company Grenadier Holdings plc raised €52,000,000 on loan notes that were admitted to trading on the Luxembourg MTF market. The repayment date is 15 December 2023. The notes currently bear an interest rate of 4% and are subject to a maximum rate of 5%. The issuance costs have been capitalised and are being amortised to net finance costs over the 7 year life of these loan notes.
The bank loans and other borrowings comprise both fixed terms and other credit facilities. €4,781,000 are secured on land and buildings in the form of a commercial mortgage. €36,019,000 is secured on trade debtors and are subject to terms and conditions as to the nature, quantum and age of such debtors. €919,000 is secured on equipment.
Amounts falling due after more than one year include a variable facility of €25,289,000 (2016: €17,480,000) secured over debtors.
• €16,346,000(2016:€17,338,000)ofthisfacilityisheldinFranceandtheUKandisrenewedonanannualbasison1August.
• €8,943,000(2016:€142,000)ofthisfacilityisheldintheUKandisdueforrenewalon15November2019.
The remainder of the Group borrowings are largely denominated in Euros at a rate of 0.85% above EURIBOR and in Sterling at a rate 1.75% above LIBOR.
The directors consider that the carrying amount of the loans approximates their fair value.
20 Obligations under leases
The Group uses finance lease contracts to acquire plant and machinery. These leases have terms of renewal but no purchase options and escalation clauses. Renewals are at the option of the lease.
Finance leases
Amounts payable under finance leases:
Within one year
Between two to five years In more than five years
Less finance charges
Present value of lease obligations
Current Non-current
3,510 9,118 484
13,112
(1,017)
12,095
2,955 9,140
12,095
2,955 8,679 461
12,095
| 87
Minimum lease payments
2017
€000
9,497
342
13,611
Present value of minimum lease payments
2017
€000
3,474
8,923
326
12,723
Minimum lease payments
2016
€000
Present value of minimum lease payments
2016
€000
3,772
(888)
12,723
3,474
9,249
12,723
Paragon Group Limited – 05258175