| | Notes to the consolidated balance sheet as at 31 December 2004in millions of euro unless stated otherwise; the comparative figures for 2003 are shown in brackets in the text  Current assets
| 2004 | 2003 | | | | | | Receivables | | |  | | | | Accounts receivable | 1,288 | 1,197 | | | | | Deferred tax assets | 52 | 44 | | | | | Taxes | - | 11 | | | | | Other receivables | 53 | 49 | | | | | Prepayments and accrued income | 34 | 30 | | | | | | 1,427 | 1,331 | | | | | | | | | |
 Current liabilities | 2004 | 2003 | | | | | | Banks and other financial liabilities | 105 | 115 | | | | | Trade creditors | 70 | 63 | | | | | Taxes and social premiums | 492 | 392 | | | | | Pension premiums | 3 | 10 | | | | | Portion of long-term liabilities payable within one year | 30 | 52 | | | | | Interest | 2 | 7 | | | | | Other liabilities | 238 | 250 | | | | | Accruals and deferred income | 117 | 131 | | | | | | 1,057 | 1,020 | | | | | | | | | |
On 22 November 2004, the Company successfully closed an €800 million multicurrency revolving credit facility (‘the Facility’) with a syndicate of banks.
The Facility is split into two tranches:
 | Tranche A, for €650 million, has an initial term of 5 years with two extension options for a further one year each. The extension options may be exercised in 2005 and 2006, with a final maturity no later than 2011. | | | | Tranche B, for €150 million, has an initial term of 3 years, with extension options which may be exercised in 2007 and 2008 and a final maturity no later than 2009. |
The Facility will be used for general corporate purposes and was used to repay and cancel the Senior Credit Facility which was entered into in August 2000. This Senior Credit Facility included a term loan facility in USD and in GBP and a revolving credit facility in an aggregate amount of €588 million.
The Company’s Facility contains a number of affirmative and negative covenants as well as two financial covenants. These financial covenants are measured quarterly, on a rolling aggregate basis for the immediately preceding four quarters and are:
Interest cover(I) the ratio of EBITDA to net interest may not be less than 4 to 1;
Leverage(II) the ratio of average net debt to EBITDA may not be greater than 3.5 to 1 in respect of any measurement period ending on or prior to the second anniversary of the signing date and 3.25 to 1 at any time thereafter.
The definitions of net debt and EBITDA in the Facility Agreement include certain adjustments, principally relating to acquisitions and disposals. At 31 December 2004, the relevant ratios were Interest cover 6.2 and Leverage 2.3.
The Company’s failure to maintain these covenants would constitute an event of default under the Facility, entitling the lenders to accelerate the repayment obligations. As at 31 December 2004, the Company was in compliance with the covenants of the Facility.
The initial interest margin for Tranche A is 55 basis points (‘bps’) and thereafter between 30 bps and 65 bps linked to a leverage grid. For Tranche B the initial interest margin is 52.5 bps and thereafter between 27.5 bps and 62.5 bps linked to a leverage grid.
In November 2004, the five-year interest rate swap agreements entered into in October 1999 to hedge the interest rate risk on borrowings of approximately €419 million expired. The level of interest on these hedged amounts (excluding the margin to be paid under the Senior Credit Facility) amounted to 6.1% on average.
In July 2003, the company entered into several medium term loans with a number of banks, of which €40 million is outstanding as at 31 December 2004. These medium term loans are repayable over a two year period.
In 2005, an amount of €30 million (2004: €52 million) will be repaid on liabilities which originally had a term of more than one year. This amount is reported under current liabilities.
In addition to the facilities described above, the Company has a number of uncommitted short-term credit facilities amounting to some €260 million. These are primarily used to meet short-term liquidity requirements. At 31 December 2004, approximately €97 million was drawn under these facilities. | |