Rogers 2008 Annual Report Download - page 109

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ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 105
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. LONG-TERM DEBT
Due Principal Interest
date amount rate 2008 2007
Corporate:
Bank credit facility Floating $ 585 $ 1,240
Senior Notes 2018 $U.S.1,400 6.80% 1,714 –
Senior Notes 2038 U.S. 350 7.50% 429 –
Formerly Rogers Wireless Inc.:
Senior Notes 2011 U.S. 490 9.625% 600 484
Senior Notes 2011 460 7.625% 460 460
Senior Notes 2012 U.S. 470 7.25% 575 464
Senior Notes 2014 U.S. 750 6.375% 918 741
Senior Notes 2015 U.S. 550 7.50% 673 543
Senior Subordinated Notes 2012 U.S. 400 8.00% 490 395
Fair value increment arising from purchase accounting 12 17
Formerly Rogers Cable Inc.:
Senior Notes 2011 175 7.25% 175 175
Senior Notes 2012 U.S. 350 7.875% 429 346
Senior Notes 2013 U.S. 350 6.25% 429 346
Senior Notes 2014 U.S. 350 5.50% 429 346
Senior Notes 2015 U.S. 280 6.75% 343 277
Senior Debentures 2032 U.S. 200 8.75% 245 198
Capital leases and other Various 1 1
8,507 6,033
Less current portion 1 1
$ 8,506 $ 6,032
(A) ISSUANCE OF SENIOR NOTES:
On August 6, 2008, the Company issued U.S. $1.4 billion of 6.80%
Senior Notes which mature on August 15, 2018 and U.S. $350 million
of 7.50% Senior Notes which mature on August 15, 2038. Each of
these notes is redeemable, in whole or in part, at the Company’s
option, at any time, subject to a certain prepayment premium. Debt
issuance costs of $16 million related to this issuance were incurred
and expensed in 2008. Simultaneously, the Company entered into
Cross-Currency Swaps (note 15(d)(iii)).
(B) REORGANIZATION OF LONG-TERM DEBT:
On June 29, 2007, the $1 billion Cable bank credit facility, the $700
million Wireless bank credit facility and the $600 million Media
bank credit facility were cancelled and the Company entered into a
new unsecured $2.4 billion bank credit facility, the initial proceeds
of which were used to repay and cancel each of the Cable, Wireless
and Media bank credit facilities.
On July 1, 2007, the Company completed an intracompany
amalgamation of RCI and certain of its wholly owned subsidiaries,
including Rogers Cable Inc. and Rogers Wireless Inc. The
amalgamated entity continues as Rogers Communications Inc. and
Rogers Cable Inc. and Rogers Wireless Inc. are no longer separate
corporate entities and have ceased to be reporting issuers. This
intracompany amalgamation does not impact the consolidated
results previously reported by the Company. In addition, the
operating subsidiaries of Rogers Cable Inc. and Rogers Wireless Inc.
were not part of and were not impacted by the amalgamation.
As a result of the amalgamation, on July 1, 2007, Rogers
Communications Inc. assumed all of the rights and obligations
under all of the outstanding Rogers Cable Inc. and Rogers
Wireless Inc. public debt indentures and Cross-Currency Swaps.
As part of the amalgamation process, on June 29, 2007, Rogers
Cable Inc. and Rogers Wireless Inc. released all security provided
by bonds issued under the Rogers Cable Inc. deed of trust and the
Rogers Wireless Inc. deed of trust for all of the then-outstanding
Rogers Cable Inc. and Rogers Wireless Inc. senior public debt and
Cross-Currency Swaps. As a result, none of the senior public debt
or Cross-Currency Swaps remain secured by such bonds effective
as of June 29, 2007.
As a result of these actions, the outstanding public debt and
Cross-Currency Swaps and the new $2.4 billion bank credit facility
are unsecured obligations of Rogers Communications Inc. The
Rogers Communications Inc. public debt originally issued by
Rogers Cable Inc. has Rogers Cable Communications Inc. (“RCCI”),
a wholly owned subsidiary, as a co-obligor and Rogers Wireless