Rogers 2008 Annual Report Download - page 111

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ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 107
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(I) FOREIGN EXCHANGE:
Foreign exchange losses related to the translation of long-term
debt recorded in the consolidated statements of income totalled
$65 million (2007 – gain of $46 million).
(J) 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, 2008, 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, 2008 and 2007, the Company was in compliance with
all of the terms and conditions of its long-term debt agreements.
(F) DEBT REPAYMENTS:
On February 6, 2007, the Company repaid at maturity, the aggregate
principal amount outstanding of Cable’s $450 million 7.60% Senior
Notes.
On May 3, 2007, the Company redeemed the aggregate principal
amount outstanding of Wireless’ U.S. $550 million ($609 million)
Floating Rate Senior Notes due 2010 at a redemption premium of
2%, or $12 million.
On June 21, 2007, the Company redeemed the aggregate principal
amount outstanding of Wireless’ U.S. $155 million ($166 million)
9.75% Senior Debentures due 2016 at a redemption premium of
28.416%. The Company incurred a net loss on repayment of the
Senior Debentures aggregating $47 million, including aggregate
redemption premiums of $59 million offset by a write-down of a
previously recorded fair value increment of $12 million.
In conjunction with the May 3, 2007, redemption of Wireless’ U.S.
$550 million Floating Rate Senior Notes due 2010 and the June
21, 2007, redemption of Wireless’ U.S. $155 million 9.75% Senior
Debentures due 2016, the Company incurred a net cash outlay of
$35 million on settlement of Cross-Currency Swaps and forward
contracts (note 15(d)).
(G) WEIGHTED AVERAGE INTEREST RATE:
The Company’s effective weighted average interest rate on all
long-term debt, as at December 31, 2008, including the effect of all
of the derivative instruments, was 7.29% (2007 – 7.53%).
(H) PRINCIPAL REPAYMENTS:
As at December 31, 2008, principal repayments due within each
of the next five years and thereafter on all long-term debt are as
follows:
2009 $ 1
2010 –
2011 1,235
2012 1,494
2013 1,014
Thereafter 4,751
$ 8,495