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## 17 INTEREST BEARING LIABILITIES 

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the bank loan is part of a multi option facility agreement with Commonwealth Bank of australia and aSB Bank limited and a facility agreement with Bank of new Zealand and national Bank of australia, both dated 19 december 2011. the loans are repayable in full on final maturity date of the facilities being 21 december 2014. Interest is payable based on the BKBM rate ($nZ borrowings), the BBSy rate ($a borrowings), or the applicable short term rate for interest periods less than 30 days, plus a margin of up to 1.15%. the bank loans are secured against the assets of the company and its subsidiaries. 

the covenants entered into by the Group require specified calculations of Group earnings before interest, tax, depreciation and amortisation (eBItda) plus lease rental costs to exceed total fixed charges (net interest expense and lease rental costs) at the end of each half during the financial year. Similarly eBItda must be no less than a specified proportion of total net debt at the end of each half. the calculations of these covenants are specified in the bank facility agreements of 19 december 2011 and have been complied with at 31 July 2012. 

the current interest rates, prior to hedging, on the term loans ranged between 3.59% - 4.47% (2011: 3.65% - 5.99%). 

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