Annual Report and Accounts 2009

Notes to the Company Financial Statements for the year to 31 December 2009

8. Debenture loans

6.625% £250m guaranteed bonds 2012 (1) 207.6 254.4
5.53% US$75m notes 2011 38.0 52.1
6.03% US$175m notes 2014 90.1 121.5
6.375% £200m bonds 2019 162.6 200.0
  498.3 628.0
In more than five years 321.5
In more than one year but less than five years 498.3 306.5
Within one year or on demand
  498.3 628.0

(1) The guarantee in respect of the 6.625% £250m guaranteed bond due 2012 was released on 16 January 2004.

The descriptions presented above refer to the titles of the debenture loan issues at their original issue date. The fair value for all debenture loans has been derived from inputs that are observable for the liability either directly or indirectly, relevant for the term and currency.

As a result of negotiations concluding in April 2009 the terms of the above debentures were changed such that they were either extended to mature on 3 July 2012 or capable of being repaid early on the same date. The coupons have also been modified to be a variable rate based on gearing tested at each quarter end. Interest rates can vary from the lowest at 7.6% to the highest at 11.2% and in accordance with the new terms a partial prepayment was made following the equity raise. Prepayment penalties have been deferred and are included in the above table.