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100 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(H) FOREIGN EXCHANGE:
Foreign exchange gains related to the translation of long-term
debt recorded in the consolidated statements of income totalled
$46 million (2006 – less than $1 million).
(I) TERMS AND CONDITIONS:
The provisions of the Company’s $2.4 billion bank credit facility
described above impose certain restrictions on the operations and
activities of the Company, the most significant of which are debt
maintenance tests.
In addition, certain of the Company’s Senior Notes and Debentures
described above (including the Company’s 9.625% Senior Notes due
2011, 7.875% Senior Notes due 2012, 6.25% Senior Notes due 2013
and 8.75% Senior Debentures due 2032) contain debt incurrence
tests as well as restrictions upon additional investments, sales of
assets and payment of dividends, all of which are suspended in
the event the public debt securities are assigned investment grade
ratings by at least two of three specified credit rating agencies.
As at December 31, 2007, all of these public debt securities were
assigned an investment grade rating by each of the three specified
credit rating agencies and, accordingly, these restrictions have
been suspended for so long as such investment grade ratings are
maintained. The Company’s other Senior Notes and its Senior
Subordinated Notes do not contain any such restrictions, regardless
of the credit ratings for such securities.
In addition to the foregoing, the repayment dates of certain debt
agreements may be accelerated if there is a change in control of
the Company.
At December 31, 2007 and 2006, the Company was in compliance
with all of the terms and conditions of its long-term debt
agreements.
16. FINANCIAL INSTRUMENTS:
(A) DERIVATIVE INSTRUMENTS:
Details of the derivative instruments liability are as follows:
Estimated
2007 fair value
Foreign exchange component $ 1,719
Interest rate component 85
1,804
Less current portion 195
$ 1,609
Estimated
fair value,
being
U.S. $ Exchange Cdn. $ carrying
2007 notional rate notional amount
Cross-currency interest rate exchange agreements accounted for as cash flow hedges $ 4,190 1.3313 $ 5,578 $ 1,798
Cross-currency interest rate exchange agreements not accounted for as hedges 10 1.5370 15 6
$ 4,200 $ 5,593 1,804
Less current portion 195
$ 1,609