EXHIBIT 4.17
ENGLISH SUMMARY
CREDIT AGREEMENT, DATED AS OF DECEMBER 11, 2002, BETWEEN LUXOTTICA GROUP
S.p.A. AND BANCA INTESA S.p.A. (AS ARRANGER FOR OTHER FINANCIAL INSTITUTIONS)
(THE "AGREEMENT").
TERMS & CONDITIONS FOR MEDIUM TERM FINANCING
BORROWER:
LUXOTTICA GROUP S.p.A.
AMOUNT:
Euro 650 million, divided into two Tranches as follows:
- Tranche A, revolving facility, equal to Euro 150 million
- Tranche B, amortizing medium term facility, equal to Euro 500 million
EXECUTION DATE:
December 27, 2002
PURPOSE:
Refinancing of short-term financial debt and financing of working capital.
ARRANGER BANK:
Banca IntesaBci S.p.A.
LENDING BANKS:
A syndicate of Italian banks and/or international banks paying from Italy.
DURATION:
36 months from the Execution Date for both Tranches.
EXPIRY DATE:
December 27, 2005
UTILISATION:
- Tranche A: The revolving loan portion provides borrowing availability of up
to Euro 150 million. The borrower may select Interest Periods of one, two,
three or six months.
- Tranche B: In one draw within 30 days from the Execution Date.
REPAYMENT & CANCELLATION:
- Tranche A: Matures in full on the Expiry Date.
- Tranche B: Repayment of 40% on the 18th month anniversary of the Execution
Date, the remaining 60% in six quarterly instalments of equal amounts, from
the 21st to the 36th month anniversary of the Execution Date.
CANCELLATION AND PREPAYMENT
- Tranche A: The Borrower is entitled to make prepayments in minimum amounts
of Euro 20 million or integral multiples of Euro 20 million, subject to
certain limitations, with no penalty, upon the expiry date of each Interest
Period, subject to prior written notice of at least 15 business days to the
Agent Bank.
- Tranche B: The Borrower is entitled to make prepayments in minimum amounts
of Euro 20 million or integral multiples of Euro 20 million, subject to
certain limitations, with no penalty, upon the expiry date of each Interest
Period, subject to prior written notice of at least 15 business days to the
Agent Bank.
INTEREST RATE:
Euribor recorded on Reuters - ATIA relative to the Interest Period chosen,
increased by the Margin set forth below. In the event the above telematic
quotation is not available or the Interest Periods not quoted, the interest rate
will be determined on the basis of the quotations' average of three agreed
reference banks, increased by the Margin.
MARGIN:
0.45% per year.
FEE FOR NON-UTILISATION (COMMITMENT FEE):
Tranche A: equal to half the Margin, calculated quarterly on the amount not
utilised, if higher than 50% of total availability.
INTEREST PERIODS:
One, two, three or six months, as at the option of the Borrower, to be
notified to the Agent Bank upon at least four business days' notice.
AGENT BANK:
IntesaBci Group S.p.A.
REPRESENTATIONS AND WARRANTIES:
- PARI PASSU Ranking: The obligations of the Borrower arising under the
Agreement are not to be subordinated to any other current or future
obligation undertaken by the Borrower save any liens provided by law.
- The Agreement contains other customary representations and warranties,
including those relating to corporate organization and status, valid
execution and delivery, the accuracy of certain information, ownership and
availability of assets, performance of contractual and legal obligations,
litigation and insolvency.
COVENANTS:
The Agreement contains certain negative operating covenants, including
limitations on entering new lines of business and transactions with
affiliates and the following:
- Negative Pledge: The Borrower undertakes to not consent to the creation of
any liens over its assets and to not cause any of the Relevant Subsidiaries
(as defined below) to grant or consent to the creation by others of any
liens on their assets, with the exception of the Allowed Security (as
defined below), or with the consent of the majority of the Lending Banks
acting through the Agent. "Allowed Security" is generally defined in the
Agreement as (i) security existing as of the date of the Agreement and any
replacement security thereof and (ii) any security granted after the date
of the Agreement not constituting security under (i), the aggregate amount
of the obligations secured by such security not to exceed U.S.$100,000,000.
"Relevant Subsidiary" is defined in the Agreement as any subsidiary of
Borrower which, together with such subsidiary's subsidiaries, exceeds 5% of
the Borrower's turnover, equity or net profit, on a consolidated basis.
- Limitation on Sale of Assets: The Agreement contains a limitation on the
sale of assets, which if exceeded would be considered an event of default.
The Agreement also contains the following financial covenants:
- The Borrower undertakes to observe the following financial ratios
(covenants), which are to be tested every six months: the ratio of debt to
net equity not exceeding 2.0; the ratio of EBITDA (income from operations
plus depreciation and amortization) to financial charges (interest expense
minus interest income) not lower than 5.0.
The Agreement also contains customary affirmative covenants, including those
relating to providing financial and other information, notices of certain events
and performance of legal and contractual obligations.
EVENTS OF DEFAULT:
The Agreement contains provisions regarding events of default, the occurrence
of which would permit the lenders to accelerate all amounts outstanding under
the Agreement, including the following: forfeiture, non-payment, breach of
representations or warranties, interruption or change of business,
insolvency, breach of contractual obligations and events having a Material
Adverse Effect (as defined in the Agreement).
GOVERNING LAW:
The Agreement is governed by Italian law.
TAXES AND DUTIES:
Any charge for taxes, duties, withholding taxes, rights or other similar charges
payable in relation to the Agreement, to the payments to be made under it or
under the facility shall be borne solely by the Borrower.
TRANSFERABILITY:
The Agreement includes customary restrictions on transferability. Any transfer
between banks is subject to the Borrower's consent, which consent shall not be
unreasonably denied or delayed.
EXHIBIT 8.1 LIST OF SUBSIDIARIES
SUBSIDIARIES OF LUXOTTICA GROUP S.p.A.
SUBSIDIARY JURISDICTION OF % OF TYPE OF
INCORPORATION OWNERSHIP OWNERSHIP SHAREHOLDER
----------------------------------------------------------------------------------------------------------------------
ARNETTE OPTICS ILLUSIONS INC. U.S.A. 100% Indirect Luxottica U.S. Holdings Corp.
----------------------------------------------------------------------------------------------------------------------
AVANT GARDE OPTICS LLC U.S.A. 100% Indirect Arnette Optics Illusions Inc.
----------------------------------------------------------------------------------------------------------------------
BAUSCH & LOMB INDIAN HOLDINGS INC U.S.A. 100% Indirect Ray-Ban Holdings Inc.
----------------------------------------------------------------------------------------------------------------------
CENTRE PROFESSIONNEL DE VISION CANADA 100% Indirect The United States Shoe Corp.
USSC INC
----------------------------------------------------------------------------------------------------------------------
COLLEZIONE RATHSCHULER SRL ITALY 100% Direct
----------------------------------------------------------------------------------------------------------------------
DISTRIBUDORA MEXICANA DE ARTICULOS MEXICO 100% Indirect Sunglass Hut International Inc.
PARA SOL S.A. DE C.V.
----------------------------------------------------------------------------------------------------------------------
ENTERPRISES OF LENSCRAFTERS LLC U.S.A. 100% Indirect LensCrafters Inc.
----------------------------------------------------------------------------------------------------------------------
EYE CARE PLAN OF AMERICA-CA INC U.S.A. 100% Indirect First American Health Concepts Inc.
----------------------------------------------------------------------------------------------------------------------
EYEMED INC U.S.A. 100% Indirect The United States Shoe Corp.
----------------------------------------------------------------------------------------------------------------------
EYEMED VISION CARE LLC U.S.A. 100% Indirect LensCrafters Inc.
----------------------------------------------------------------------------------------------------------------------
EYEMED VISION CARE IPA LLC U.S.A. 100% Indirect Eyemed Vision Care LLC
----------------------------------------------------------------------------------------------------------------------
FIRST AMERICAN ADMINISTRATORS CO. U.S.A. 100% Indirect First American Health Concepts Inc.
----------------------------------------------------------------------------------------------------------------------
FIRST AMERICAN HEALTH CONCEPTS INC U.S.A. 100% Indirect Eyemed Vision Care LLC
----------------------------------------------------------------------------------------------------------------------
FIRST AMERICAN REINSURANCE COMPANY CAYMAN 100% Indirect First American Health Concepts Inc.
ISLANDS
----------------------------------------------------------------------------------------------------------------------
GUANGZHOU RAY-BAN EYEWEAR CHINA 100% Indirect Luxottica Hong Kong Ltd
COMPANY LTD
----------------------------------------------------------------------------------------------------------------------
KILLER LOOP EYEWEAR SRL ITALY 100% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LRE LLC U.S.A. 100% Indirect LensCrafters Inc.
----------------------------------------------------------------------------------------------------------------------
LENSCRAFTERS CANADA INC CANADA 100% Indirect The United States Shoe Corp.
----------------------------------------------------------------------------------------------------------------------
LENSCRAFTERS INC U.S.A. 100% Indirect The United States Shoe Corp.
----------------------------------------------------------------------------------------------------------------------
LENCRAFTERS INTERNATIONAL INC U.S.A. 100% Indirect The United States Shoe Corp.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA AG SWITZERLAND 97% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA ARGENTINA SRL ARGENTINA 99.57% Direct
0.43% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA AUSTRALIA PTY LTD AUSTRALIA 25% Direct
75% Indirect Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA BELGIUM N.V. BELGIUM 99% Direct
1% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA CANADA INC CANADA 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA DO BRASIL LTDA BRAZIL 99.995% Direct
0.005% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA DISTRIBUTION CENTER ITALY 100% direct
S.R.L.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA (XXXX XXXX) TRISTAR CHINA 100% Indirect Luxottica Holland B.V.
OPTICAL CO. LTD.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA FASHION BRILLEN GMBH GERMANY 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA FRANCE S.A.R.L. FRANCE 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA GOZLUK TICARET ANOMIN TURKEY 51% Direct
SIRKETI
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA GULF LLC UNITED ARAB 49% Direct (*)
EMIRATES
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA HELLAS AE GREECE 70% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA HOLLAND BV THE 100% Direct
NETHERLANDS
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA HONG KONG LTD HONG KONG - 99.999999% Indirect Luxottica Holland B.V.
CHINA
0.000001% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA IBERICA SA SPAIN 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA IRELAND LTD IRELAND 100% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA LEASING SPA ITALY 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA LUXEMBOURG SA LUXEMBOURG 99.98% Direct
0.02% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA MALAYSIA SDN BHD MALAYSIA 1% Direct
99 Indirect Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA MEXICO SA de C.V. MEXICO 96% Direct
4% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA NEDERLAND B.V. HOLLAND 51% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA NORGE A.S. NORWAY 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA OPTICS LTD ISRAEL 74.90% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA POLAND SP ZOO POLAND 75% Indirect Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA PORTUGAL S.A. PORTUGAL 99.143% Direct
0.214% Indirect Luxottica Leasing S.p.a.
0.214% Indirect Luxottica U.K.
0.214% Indirect Luxottica Fashion Brillen
0.214% Indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA SOUTH AFRICA PTY LTD SOUTH AFRICA 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA S.R.L. ITALY 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA SUN CORPORATION U.S.A. 100% Indirect Luxottica U.S. Holdings Corp.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA SWEDEN AB SWEDEN 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA THAILAND LTD THAILANDI 49% Indirect (*) Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA U.K. LTD GREAT BRITAIN 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA U.S. HOLDINGS CORP. U.S.A. 99% Direct
1% Indirect Killer Loop Eyewear S.r.l.
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA U.S.A. INC. U.S.A. 100% Direct
----------------------------------------------------------------------------------------------------------------------
LUXOTTICA VERTRIEBSGESELLSCHAFT MBH AUSTRIA 100% Direct
----------------------------------------------------------------------------------------------------------------------
MIRARI JAPAN CO. LTD JAPAN 15.83% Direct
67.17% Indirect Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
MIRARIAN MARKETING PTE LTD SINGAPORE 51% Indirect Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
OY LUXOTTICA FINLAND AB FINLAND 100% Direct
----------------------------------------------------------------------------------------------------------------------
OPTIKA HOLDINGS LIMITED GREAT BRITAIN 50% indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
OPTIKA LIMITED GREAT BRITAIN 50% indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
OPTIKA OPTICIANS LIMITED GREAT BRITAIN 50% indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
OPTIKA (UK) LIMITED GREAT BRITAIN 50% indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
XXXXX XXXXXX (OPTICS) LIMITED GREAT BRITAIN 50% indirect
----------------------------------------------------------------------------------------------------------------------
EYE-TECH EYEWEAR LIMITED GREAT BRITAIN 50% indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
IN-PERSPECTIVE DESIGNS LIMITED GREAT BRITAIN 50% indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
KIDS DISCOUNT STORE LIMITED GREAT BRITAIN 50% Indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
KINGSTON OPTICAL COMPANY LIMITED GREAT BRITAIN 50% Indirect Optika Holdings Limited
----------------------------------------------------------------------------------------------------------------------
RAY-BAN HOLDINGS INC. U.S.A. 100% Indirect Luxottica U.S. Holdings Corp.
----------------------------------------------------------------------------------------------------------------------
RAY-BAN SUN OPTICS INDIA LIMITED INDIA 44.152% Indirect Bausch & Lomb Indian Holdings Inc.
(**)
----------------------------------------------------------------------------------------------------------------------
REVO INC. U.S.A. 100% Indirect Luxottica U.S. Holdings Corp.
----------------------------------------------------------------------------------------------------------------------
SHADESCOM INC. U.S.A. 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUN SHADE OPTIQUE (UK) LIMITED UNITED 100% indirect Sunglass Hut (UK) Limited
KINGDOM
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT (ANTIGUA) LIMITED ANTIGUA 100% indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT (BARBADOS) INC. BARBADOS 100% indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT CANARY X.X. XXXXXX 70% indirect Sunglass Hut UK Limited
ISLANDS
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT (SINT MAARTEN) N.V. NETHERLANDS 100% indirect Sunglass Hut International Inc.
ANTILLES
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT (SOUTH EAST ASIA) PTE SINGAPORE 100% indirect Sunglass Hut International Inc.
LTD
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT (UK) LIMITED UNITED 0.0000172% indirect Sunglass Hut Realty Corp.
KINGDOM
3.614379% indirect Sunglass Hut Trading Corporation
96.385603% indirect Sunglass Hut of Florida
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT AG SWITZERLAND 0.1% indirect Sunglass Hut Realty Corp.
99.70% indirect Sunglass Hut of Florida
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT AUSTRALIA PTY LIMITED AUSTRALIA 100% indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT BELGIUM N.V. BELGIUM 0.08% Indirect Sunglass Hut Realty Corp.
99.92% Indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT DE MEXICO de C.V. MEXICO 100% indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT GERMANY GMBH GERMANY 1% indirect Sunglass Hut Realty Corp.
99% indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT HOLDINGS OF FRANCE U.S.A. 100% indirect Sunglass Hut International Inc.
INC.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT INTERNATIONAL INC. U.S.A. 100% indirect Luxottica S.r.l.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT IRELAND LIMITED IRELAND 1% Indirect Sunglass Hut Realty Corp.
99% Indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT ITALY S.R.L. ITALY 1% Indirect Sunglass Hut Realty Corp.
99% Indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT NETHERLANDS B.V. HOLLAND 2.5% Indirect Sunglass Hut Realty Corp.
97.5% Indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT NEW ZEALAND LIMITED NEW ZEALAND 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT OF CANADA LTD CANADA 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS OF FLORIDA INC. U.S.A. 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT OF FRANCE SOCIETE EN FRANCE 99.9995% Indirect Sunglass Hut Holdings of France Inc.
NOM COLLECTIF (SNC)
0.0005% Indirect Sunglass Hut of Southern France Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT OF SOUTHERN FRANCE U.S.A. 100% Indirect Sunglass Hut International Inc.
INC.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT PORTUGAL PORTUGAL 2% Indirect Sunglass Hut Realty Corp.
COMERCIO DE OCULOS E RELOGIOS LDA
98% Indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT REALTY CORPORATION U.S.A. 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT SPAIN S.L. SPAIN 0.2% Indirect Sunglass Hut Realty Corp.
99.80% Indirect Sunglass Hut of Florida Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS HUT TRADING CORPORATION U.S.A. 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
SUNGLASS TERMINAL INC. U.S.A. 100% Indirect Sunglass Hut Trading Company
----------------------------------------------------------------------------------------------------------------------
SUNGLASS WORLD HOLDINGS PTY LIMITED AUSTRALIA 100% Indirect Sunglass Hut Australia Pty Limited
----------------------------------------------------------------------------------------------------------------------
THE UNITED STATES SHOE CORPORATION U.S.A. 100% Indirect Avant Garde Optics LLC
----------------------------------------------------------------------------------------------------------------------
TRISTAR OPTICAL COMPANY LTD HONG KONG 50% Direct
-CHINA
50% Indirect Luxottica Holland B.V.
----------------------------------------------------------------------------------------------------------------------
U.S.S. DELAWARE CORPORATION U.S.A. 100% Indirect The United States Shoe Corporation
----------------------------------------------------------------------------------------------------------------------
WATCH WORLD INTERNATIONAL INC. U.S.A. 100% Indirect Watch World Licensing Corporation
----------------------------------------------------------------------------------------------------------------------
WATCH WORLD LICENSING CORP. U.S.A. 100% Indirect Sunglass Hut International Inc.
----------------------------------------------------------------------------------------------------------------------
C&M OPTICAL COMPANY LTD SOUTH KOREA 50% indirect Mirari Japan Ltd
----------------------------------------------------------------------------------------------------------------------
(*) The percent of ownership is limited to 49% to conform with a local law
which prohibits the incorporation of limited liability companies with the
major shareholder being a foreign person or entity. Considering the
existing agreement with the local partner of this subsidiary, we control
it, DE FACTO.
(**) Even with this limited ownership, we are able to exercise control over the
subsidiary.
