• Consolidated Financial Statements 
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      • 13. Cash and cash equivalents 
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      • 21. Debt and liabilities from capital lease obligations 
      • 22. Senior Notes 
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      • 24. Pensions and similar obligations 
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Home Consolidated Financial Statements Notes Notes on the consolidated balance sheet 21. Debt and liabilities from capital lease obligations

21. DEBT AND LIABILITIES FROM CAPITAL LEASE OBLIGATIONS

SHORT-TERM DEBT

Borrowings

Short-term borrowings of € 729 million and € 362 million at December 31, 2008, and 2007, respectively, consisted of € 342 million borrowed by certain subsidiaries of the Fresenius Group under lines of credit with commercial banks and € 387 million outstanding short-term borrowings under the accounts receivable facility described on the next page. The average interest rates on these borrowings (excluding the accounts receivable facility) at December 31, 2008 and 2007 were 5.17% and 5.15%, respectively.

The rise of short-term borrowings mainly refers to the increase of Fresenius Medical Care’s short-term borrowings under its accounts receivable facility. Fresenius Medical Care used the proceeds, together with borrowings under its other existing long-term credit facilities, to redeem its trust preferred securities that became due on February 1, 2008. 

Accounts receivable facility

Fresenius Medical Care has an asset securitization facility (accounts receivable facility), which is typically renewed in October of each year and was renewed most recently in October 2008. Under the accounts receivable facility, certain receivables are sold to NMC Funding Corp. (NMC Funding), a wholly-owned subsidiary of Fresenius Medical Care. NMC Funding then assigns percentage ownership interests in the accounts receivable to certain bank investors. Under the terms of the accounts receivable facility, NMC Funding retains the right to recall all transferred interests in the accounts receivable assigned to the banks under the facility. As Fresenius Medical Care has the right at any time to recall the then outstanding interests, the receivables remain on the consolidated balance sheet and the proceeds from the transfer of percentage ownership interests are recorded as short-term borrowings.

At December 31, 2008, there were outstanding short-term borrowings under the accounts receivable facility of US$ 539 million (€ 387 million). NMC Funding pays interest to the bank investors, calculated based on the commercial paper rates for the particular tranches selected. The average interest rate at December 31, 2008 was 3.89%. Annual refinancing fees, which include legal costs and bank fees (if any), are amortized over the term of the facility.

LONG-TERM DEBT AND LIABILITIES FROM CAPITAL LEASE OBLIGATIONS

As of December 31, long-term debt and liabilities from capital lease obligations consisted of the following:

in million €	2008	2007
Fresenius Medical Care 2006 Senior Credit Agreement	2,419	2,151
2008 Senior Credit Agreement	1,896	0
Bridge Credit Agreement	467	0
Euro Notes	800	440
European Investment Bank Agreements	309	169
Capital lease obligations	42	42
Other	214	200
Subtotal	6,147	3,002
less current portion	431	115
Long-term debt and liabilities from capital lease obligations, less current portion	5,716	2,887

Maturities of long-term debt and liabilities from capital lease obligations are shown in the following table:

in million €	up to 1 year	1 to 5 years	more than 5 years
Fresenius Medical Care 2006 Senior Credit Agreement	96	2,323	0
2008 Senior Credit Agreement	67	816	1,013
Bridge Credit Agreement	0	0	467
Euro Notes	200	300	300
European Investment Bank Agreements	8	163	138
Capital lease obligations	8	24	10
Other	52	104	58
Long-term debt and liabilities from capital lease obligations	431	3,730	1,986

Aggregate annual repayments applicable to the above listed long-term debt and liabilities from capital lease obligations for the five years subsequent to December 31, 2008 are:

for the fiscal years	in million €
2009	431
2010	269
2011	1,299
2012	1,378
2013	784
Subsequent years	1,986
Total	6,147