As described [in this page], the net financial debt as per the existing financial covenants' terms ("Covenant Net Financial Debt") amounted to €1,851.8 million on December 31, 2011, a reduction of €719.2 million compared to the Covenant Net Financial Debt on December 31, 2010. This reduction is mainly driven by the free cash flow generated during the period, as well as the net proceeds of the sale of Opodo.
On May 16, 2011 the Company reached an agreement to refinance its debt through a new senior unsecured credit facility. Our previous senior credit agreement was fully amortised and replaced by a new financing package of €2.7 billion, structured under the following tranches:
Under our new debt structure, and after the partial amortisation of the Tranche B and the full amortisation of the Tranche C, 62% of our total covenant financial debt is subject to floating interest rates, indexed to the EURIBOR or the USD LIBOR, while 38% of our debt has a fixed cost and is therefore not subject to interest rate risk. However, we use hedging arrangements to limit our exposure to movements in the underlying interest rates. Under these arrangements, 68% of our euro-denominated gross debt subject to floating interest rates has its base interest rate fixed until June 2014 at an average rate of 1.9%, and 85% of our USD-denominated gross debt subject to floating interest rates has its base interest rate fixed for the same period at an average rate of 1.2%. In total, in the aforementioned period, 84% of our total covenant financial debt will accrue fixed interests.