Universal Registration Document 2019

56 LISI 2019 UNIVERSAL REGISTRATION DOCUMENT Consolidated financial statements 2 Breakdown by interest rate category The table below summarizes loans from credit institutions to the Group as it studies the principal amounts incurred at fixed and variable rates. Entities Nature of the loan Fixed rate Variable rate Total amount in €M Capital remaining due at 12/31/2019 in millions of euros Maturity date Existence or not of interest rate or currency hedges Covenant LISI S.A. Conventional loan Euribor 3 months + margin 30,0 30,0 2021 Partly covered by a SWAP Conventional loan 1.00% 30.0 30.0 2022 [1] Conventional loan 0.75% 30.0 30.0 2024 [1] Conventional loan 0.65% 15.0 8.5 2024 [1] Conventional loan 0.65% 15.0 9.1 2024 [1] Conventional loan 0.65% 15.0 9.2 2024 [1] Conventional loan 0.73% 15.0 15.0 2023 [1] Conventional loan 0.80% 15.0 15.0 2023 [1] Conventional loan 0.95% 10.0 8.9 2026 [1] Conventional loan 1.22% 20.0 20.0 2026 [1] USPP * 3.64% 56.0 32.0 2023 [2] USPP * 1.82% 20.0 17.1 2025 [2] USPP * 1.78% 40.0 40.0 2026 [2] CREUZET AERONAUTIQUE Conventional loan Euribor 1 month + margin 3.9 0.3 2020 Hedged by a swap [1] BLANC AERO INDUSTRIES Conventional loan Euribor 3 months + margin 11.5 9.1 2031 Hedged by a swap [1] LISI AUTOMOTIVE Former Conventional loan Euribor 3 months + margin 6.0 1.3 2021 3.0 1.5 2024 3.0 1.8 2024 [1] LISI MEDICAL Fasteners Conventional loan Euribor 3 months + margin 4.5 1.8 2024 Hedged by a swap [1] TOTAL 342.9 280.5 * USPP: US Private Placement 3.4.6.2 - Related covenants The Group has no bank facilities based on its credit rating. The contracts entered into include conventional clauses regarding the financial health of the Group or its subsidiaries. The definition and levels of ratios, also called “financial covenants,” are set by prospective mutual agreement with credit institutions. Depending on the bank, compliance with these ratios is assessed once or twice a year, on the half-year and annual close dates. Failure to comply with these ratios entitles the credit institutions to impose early repayment (total or partial) of the facilities granted. As at the year-end, covenants were respected. For the reader’s information, the “financial covenants” related to each loan are described hereafter: [1] Consolidated gearing ratio < 1.2 (Net debt/Shareholders’ equity). Consolidated leverage ratio < 3.5 (Net debt/EBITDA). [2] Consolidated gearing ratio < 1.2 (Net debt/Shareholders’ equity). Consolidated leverage ratio < 3.5 (Net debt/EBITDA). Coverage ratio of consolidated interest expense < 4.5 (Net interest expense/EBITDA). At December 31, 2019: ■ The consolidated gearing ratio is 0.328, compared to 0.362 in 2018. ■ The consolidated leverage ratio is 1.215 compared to 1.505 in 2018. ■ The coverage ratio of consolidated interest expense is 0.016 compared to 0.012 in 2018. The Group therefore has a comfortable margin of safety, confirming its low liquidity risk.