Rogers 2009 Annual Report Download - page 101

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ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT 105
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. LONG-TERM DEBT:
Due
date
Principal
amount
Interest
rate 2009 2008
Corporate:
Bank credit facility Floating $ – $ 585
Senior Notes 2016 $ 1,000 5.80% 1,000 –
Senior Notes 2018 U.S. 1,400 6.80% 1,471 1,714
Senior Notes 2019 500 5.38% 500 –
Senior Notes 2038 U.S. 350 7.50% 368 429
Senior Notes 2039 500 6.68% 500 –
Formerly Rogers Wireless Inc.:
Senior Notes 2011 U.S. 490 9.625% 515 600
Senior Notes 2011 460 7.625% 460 460
Senior Notes 2012 U.S. 470 7.25% 494 575
Senior Notes 2014 U.S. 750 6.375% 788 918
Senior Notes 2015 U.S. 550 7.50% 578 673
Senior Subordinated Notes 2012 U.S. 400 8.00% –490
Fair value increment arising from purchase accounting 612
Formerly Rogers Cable Inc.:
Senior Notes 2011 175 7. 25% 175 175
Senior Notes 2012 U.S. 350 7.875% 368 429
Senior Notes 2013 U.S. 350 6.25% 368 429
Senior Notes 2014 U.S. 350 5.50% 368 429
Senior Notes 2015 U.S. 280 6.75% 294 343
Senior Debentures 2032 U.S. 200 8.75% 210 245
Capital leases and other Various 11
8,464 8,507
Less current portion 11
$ 8,463 $ 8,506
(A) ISSUANCE OF SENIOR NOTES:
On November 4, 2009, the Company issued $500 million of 5.38%
Senior Notes which mature on November 4, 2019 and $500 million of
6.68% Senior Notes which mature on November 4, 2039. The notes
are redeemable, in whole or in part, at the Company’s option, at any
time, subject to a certain prepayment premium. The net proceeds
from the offering were approximately $993 million after deduction
of the original issue discount of $1 million, and debt issuance costs
of $6 million related to this issuance, which were incurred and
expensed in 2009.
On May 26, 2009, the Company issued $1.0 billion of 5.80% Senior
Notes which mature on May 26, 2016. The notes are redeemable, in
whole or in part, at the Company’s option, at any time, subject to a
certain prepayment premium. The net proceeds from the offering
were approximately $993 million after deduction of the original
issue discount of $2 million and debt issuance costs of $5 million
related to this issuance, which were incurred and expensed in 2009.
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.
Simultaneously, the Company entered into Derivatives (note 15(d)).
The net proceeds from the offering were approximately $1,774
million after deduction of the original issue discount of $2 million,
and debt issuance costs of $16 million, which were incurred and
expensed in 2008.
(B) BANK CREDIT FACILITY:
The bank credit facility provides the Company with up to $2.4 billion
from a consortium of Canadian financial institutions. The bank
credit facility is available on a fully revolving basis until maturity
on July 2, 2013, and there are no scheduled reductions prior to
maturity. The interest rate charged on the bank credit facility
ranges from nil to 0.5% per annum over the bank prime rate or base
rate or 0.475% to 1.75% over the bankers’ acceptance rate or the
London Inter-Bank Offered Rate (“LIBOR”). The Company’s bank
credit facility is unsecured and ranks pari passu with the Company’s
senior public debt and Derivatives. The bank credit facility requires
that the Company satisfy certain financial covenants, including the
maintenance of certain financial ratios.
(C) SENIOR NOTES, DEBENTURES AND SENIOR
SUBORDINATED NOTES:
Interest is paid semi-annually on all of the Company’s notes
and debentures.
Each of the Company’s Senior Notes, Debentures and Senior
Subordinated Notes are redeemable, in whole or in part, at
the Company’s option, at any time, subject to a certain prepayment
premium.