Cogeco 2013 Annual Report Download - page 78

Consolidated financial statements COGECO CABLE INC. 2013 77
15. LONG-TERM DEBT
At August 31, Maturity Interest rate 2013 2012
(In thousands of Canadian dollars, except percentage) %$$
Parent Corporation
Term Revolving Facility a)
Revolving loan – US$206 million November 2017 1.93 (1)(2) 216,918 —
Revolving loan November 2017 2.91 219,561 —
Secured Credit Facilities b)
Revolving Facility
Revolving loan – £52.2 million January 2017 2.24 (1) 85,180 —
Revolving loan – US$21.9 million January 2017 1.93 (1) 23,061 —
UK Revolving Facility – £3.4 million January 2017 2.25 (1) 5,548 —
Senior Secured Notes c)
Series A – US$190 million October 2015 7.00 (3) 199,349 186,244
Series B October 2018 7.60 54,672 54,619
Senior Secured Notes – US$215 million d) June 2025 4.30 224,872 —
Senior Secured Debentures Series 1 e) June 2014 5.95 —298,694
Senior Secured Debentures Series 2 f) November 2020 5.15 198,686 198,539
Senior Secured Debentures Series 3 g) February 2022 4.93 198,379 198,249
Senior Secured Debentures Series 4 h) May 2023 4.18 296,989 —
Senior Unsecured Debenture i) March 2018 5.94 99,829 99,850
Senior Unsecured Notes – US$400 million j) May 2020 4.88 413,674 —
Subsidiaries
First Lien Credit Facilities k)
Term Loan A Facility – US$190 million November 2017 2.56 (1) 195,193 —
Term Loan B Facility – US$416.85 million November 2019 3.25 (1) 423,528 —
Revolving Facility – US$33 million November 2017 2.62 (1) 34,749 —
Finance leases March 2013 to January 2015 3.38 (4) 2,077 837
2,892,265 1,037,032
Less current portion 15,190 830
2,877,075 1,036,202
(1) Interest rate on debt at August 31, 2013, including applicable margin.
(2) Interest rate swap agreements have resulted in an effective interest rate of 2.15% at August 31, 2013 on a notional amount of US$200 million,
including applicable margin.
(3) Cross-currency swap agreements have resulted in an effective interest rate of 7.24% on the Canadian dollar equivalent of the US denominated debt.
(4) Weighted average interest rate on finance leases.
a) On November 22, 2011, the Corporation renewed its credit agreement for a $750 million credit facility, with an option to increase to a
total amount of up to $1 billion, subject to lenders' participation, in the form of a five-year Term Revolving Facility, which may be extended
by additional one-year periods on an annual basis, subject to lenders' approval. The Term Revolving Facility is available in Canadian,
US or Euro currencies and includes a swingline of $25 million available in Canadian or US currencies. The Term Revolving Facility was
originally supposed to mature on November 22, 2016. On October 26, 2012 , the Corporation amended its Term Revolving Facility to
extend the maturity by an additional year and consequently, the Term Revolving Facility will mature on November 22, 2017. The Term
Revolving Facility requires commitment fees, and interest rates are based on bankers' acceptance, LIBOR in Euros or in US dollars,
bank prime rate loan or US base rate loan plus the applicable margin.The Term Revolving Facility is indirectly secured by a first priority
fixed and floating charge on substantially all present and future real and personal property and undertaking of every nature and kind of
the Corporation and certain of its subsidiaries, and provides for certain permitted encumbrances, including purchased money obligations,
existing funded obligations and charges granted by any subsidiary prior to the date when it becomes a subsidiary, subject to a maximum
amount. The provisions under this facility provide for restrictions on the operations and activities of the Corporation. Generally, the most
significant restrictions relate to permitted investments and dividends on multiple and subordinate voting shares, as well as incurrence
and maintenance of certain financial ratios primarily linked to operating income before amortization, financial expense and total
indebtedness. At August 31, 2013 and 2012, the Corporation was in compliance with all of its covenants.
On July 5, 2013, Cogeco Cable reduced its Term Revolving Facility from $750 million to $600 million.
b) As a result of the acquisition of PEER 1 on January 31, 2013, the Corporation concluded Secured Credit Facilities totaling approximately
$650 million with a syndicate of lenders in four tranches for net proceeds of $640.3 million net of transaction costs of $2.8 million. The
first tranche, a Canadian Term Facility amounted to $175 million, the second tranche, a US Term Facility amounted to US$225 million,
the third tranche, a Revolving Facility of $240 million and the fourth tranche, a UK Revolving Facility of £7 million. The Revolving Facility
is available in Canadian dollars, US dollars, British Pounds and Euros and interest rates are based on bankers' acceptance, LIBOR
loans in US dollars, British Pounds or Euros, prime rate loans or base rate loans in US dollars, plus the applicable margin. The UK
Revolving Facility is available in British Pounds and interest rates are based on British Pounds base rate loans or British Pounds LIBOR
loans. The Secured Credit Facilities will mature on January 27, 2017. The Secured Credit Facilities are indirectly secured by a first priority
fixed and floating charge on substantially all present and future real and personal property and undertaking of every nature and kind of