7. Other Current Interest Bearing LiabilitiesAudited information
Other current interest bearing liabilities amount to CHF 251 960 656 at the end of 2017 compared to CHF 237 477 899 at the end of 2016. They comprise third party liabilities of CHF 250 000 000 (compared to CHF 115 472 542 at the end of 2016) and intragroup liabilities of CHF 1 960 656 (compared with CHF 122 005 357 at the end of 2016).
On 9 June 2017 a bond issued in 2011 with a nominal value of CHF 100 million reached maturity and was repaid.
On 21 April 2016, the certificate of indebtedness in 2011 with a notional amount of EUR 123 million reached maturity and was repaid.
A bond issued in 2012 with a nominal value of CHF 250 million, will fall due in 2018 and as a consequence was reclassified to current financial debt.
On 16 December 2016, Clariant Ltd signed an agreement for a new CHF 500 million five-year multi-currency revolving credit facility (RCF) with two one-year extension options. The RCF is structured as a club deal with ten key relationship banks with equal stakes and contains an accordion option for an increase up to CHF 600 million. The RCF is structured as a »back-stop« facility for rating purposes to maintain Clariant’s liquidity headroom. It contains customary covenants such as negative pledge, cross default, ownership change and restriction on disposals, mergers and subsidiary debt. The Group is required to maintain one financial covenant (debt leverage) that is tested at the end of each financial half year. The credit facility was extended for another year until 16 December 2022.
The intragroup liabilities comprise the cash pool accounts and current accounts between Group companies.
A rating assesses the creditworthiness of a debtor. Ratings are mainly required for the issue of debt instruments and usually determine the level of necessary interest payments, among other things. Clariant currently uses the two rating agencies, Moody’s and Standard & Poor’s, for this purpose. VIEW ENTIRE GLOSSARY