ANNUAL INTEGRATED REPORT 2021
155
ANNUAL INTEGRATED REPORT 2021 | AXTEL
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Financial ratios to be fulfilled include the following:
a. Interest coverage ratio: which is defined as adjusted EBITDA (See
Note 30) divided by financial expenses for the last four quarters of
the period analyzed. This ratio cannot be less than 2.50 times.
b. Leverage ratio: which is defined as net consolidated debt (current
and non-current debt, net of debt issuance costs, less unrestricted
cash and cash equivalents) divided by adjusted EBITDA (See Note
30) for the last 12 months.
As of December 31, 2021, for Senior Notes, the leverage ratio cannot
exceed 4.25 times and for the bank loan 4 times.
Covenants contained in credit agreements establish certain obligations,
conditions and exceptions that require or limit the capacity of the
Company to:
.
.
Grant liens on assets;
Enter into transactions with affiliates;
Conduct a merger in which the Company is dissolved, unfavorable
sale of assets; and
Pay dividends
As of December 31, 2021, and as of the date of issuance of these
consolidated financial statements, the Company and its subsidiaries
complied satisfactorily with the covenants established in the credit
agreements.
18
LEASE LIABILITY
Current portion:
2021
As of December 31,
2020
2019
USD:
$ 59,061
MXN:
205,203
$ 77,720
217,029
$186,801
264,974
Current lease liability
USD:
MXN:
$264,264 $294,749 $451,775
484,254
Less; Current portion of lease liability
Non-current lease liability
264,264
$219,990
$134,447 $131,101 $233,049
349,807 495,923 633,049
627,024 866,098
294,749 451,775
$332,275 $414,323
Initial balance
Financial lease reclassification
Beginning balance
New contracts
Write-offs
Interest expense from lease liability
Lease payments
Exchange gain (loss)
Ending balance
2021
2020
2019
$
$
$ 680,405
740,113
627,024 866,098
240,512 239,952
(107,991) (22,159)
1,420,518
54,702
(332,412)
2,419
68,157
(545,855)
20,831
$ 484,254 $627,024
7,103
99,072
(638,067)
(22,528)
$ 866,098
The total of future minimum payments of leases that include non-
accrued interest is analyzed as follows:
Less than 1 year
2021
$273,083
Over 1 year and less than 5 years
Over 5 years
207,176
16,241
Total
$496,500
As of December 31,
2020
$308,942
334,577
6,999
$650,518
2019
$473,476
415,759
12,989
$902,224View entire presentation