Following the unwinding of cross-currency swaps on December 16, 2020 (see Note 17), this item no longer includes the foreign exchange value of these derivatives.
At December 31, 2019, pursuant to ANC regulation 2015-05, the foreign exchange value of the derivatives hedging the loans granted to MMS Multi Market Services Ireland (for principal amounts of USD 869,050,000 and USD 741,270,000, respectively) was recognized in other liabilities for euro 133,434,218 at December 31, 2019. The counterparty to these derivatives was in unrealized foreign exchange losses – hedging derivatives (see Note 13).
(in thousands of euros) | December 31, 2020 | December 31, 2019 |
Hedging derivatives | - | 133,434 |
Other creditors | 400 | 712 |
Total | 400 | 134,146 |
At December 31, 2019, this item mainly included the payment received when hedging swaps were set up. This payment was staggered over the term of the hedging. When the swaps were unwound on December 16, 2020, the entire residual balance was recorded as financial income for financial year 2020.
Following the repayment of the loans made on December 16, 2020 by MMS Multi Market Services Ireland (see Note 9.4), there is no longer an unrealized foreign exchange gain as at December 31, 2020.
At December 31, 2019, the unrealized foreign exchange gain was broken down into:
When issued in December 2014, this euro 700 million bond at a fixed rate of 1.125% was the subject of a cross-currency interest rate swap transforming it from euro fixed rate to dollar fixed rate. Two contracts, each for euro 350 million, were agreed for 2.921% and 2.918%, respectively.
When issued in December 2014, this euro 600 million bond at a fixed rate of 1.625% was the subject of a cross-currency interest rate swap transforming it from euro fixed rate to dollar variable rate. Two contracts, each for euro 300 million, were originally concluded in December 2014, then converted on January 2, 2015 into fixed rates of 2.965% and 2.994%, respectively.
The exercise of warrants, which can occur at any time from September 24, 2013 to September 24, 2022, will lead to an increase in the Publicis Groupe’s capital stock. The conversion ratio was adjusted again during the financial year by a factor of 1.081 to reflect the distributions drawn from the Company’s reserves and premiums. Following the cancellation of the warrants acquired in previous years or exercised since September 24, 2013, Publicis Groupe SA was, as of December 31, 2020, committed to issuing (in the event that the 876,315 outstanding stock warrants are exercised) 947,297 shares with a euro 0.40 par value and a euro 30.10 premium.
