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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. LONG-TERM DEBT:
Due
date Principal
amount Interest
rate December 31,
2011 December 31,
2010 January 1,
2010
Bank credit facility Floating $ 250 $ – $ –
Senior Notes* 2011 $ U.S. 490 9.625% – – 515
Senior Notes* 2011 460 7.625% – – 460
Senior Notes** 2011 175 7.25% – – 175
Senior Notes** 2012 U.S. 350 7.875% – 348 368
Senior Notes* 2012 U.S. 470 7.25% – 468 494
Senior Notes** 2013 U.S. 350 6.25% 356 348 368
Senior Notes* 2014 U.S. 750 6.375% 763 746 788
Senior Notes** 2014 U.S. 350 5.50% 356 348 368
Senior Notes* 2015 U.S. 550 7.50% 559 547 578
Senior Notes** 2015 U.S. 280 6.75% 285 279 294
Senior Notes 2016 1,000 5.80% 1,000 1,000 1,000
Senior Notes 2018 U.S. 1,400 6.80% 1,424 1,392 1,471
Senior Notes 2019 500 5.38% 500 500 500
Senior Notes 2020 900 4.70% 900 900 –
Senior Notes 2021 1,450 5.34% 1,450 – –
Senior Debentures** 2032 U.S. 200 8.75% 203 199 210
Senior Notes 2038 U.S. 350 7.50% 356 348 368
Senior Notes 2039 500 6.68% 500 500 500
Senior Notes 2040 800 6.11% 800 800 –
Senior Notes 2041 400 6.56% 400 – –
10,102 8,723 8,457
Fair value increment (decrement) arising from purchase accounting (4) (5) 6
Deferred transaction costs and discounts (64) (64) (67)
Capital leases ––1
Less current portion – – (1)
$ 10,034 $ 8,654 $ 8,396
(*) Denotes senior notes originally issued by Rogers Wireless Inc. which are now unsecured obligations of RCI and for which Rogers
Communications Partnership (“RCP”) is an unsecured co-obligor.
(**) Denotes senior notes and debentures originally issued by Rogers Cable Inc. which are now unsecured obligations of RCI and for which RCP
is an unsecured guarantor.
(a) 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. The Company’s bank credit facility is unsecured and
ranks pari passu with the Company’s senior public debt and
Derivatives (see Note 18(d)). The bank credit facility requires that the
Company satisfy certain financial covenants, including the
maintenance of certain financial ratios.
As at December 31, 2011, $250 million (December 31, 2010 – $nil;
January 1, 2010 – $nil) of long-term debt was borrowed under our
$2.4 billion bank credit facility.
(b) Senior Notes:
Interest is paid semi-annually on all of the Company’s Senior Notes
and Senior Debentures.
Each of the Company’s Senior Notes and Senior Debentures are
redeemable, in whole or in part, at the Company’s option, at any
time, subject to a certain prepayment premium.
(c) Issuance of Senior Notes:
2011 Issuances:
On March 21, 2011, the Company issued $1,450 million of 5.34%
Senior Notes which mature on March 22, 2021. 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 $1,442 million after deduction
of the original issue discount and debt issuance costs.
On March 21, 2011, the Company issued $400 million of 6.56% Senior
Notes which mature on March 22, 2041. 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 $398 million after deduction of the original issue
discount and debt issuance costs.
Debt issuance costs of $10 million related to these debt issuances
were incurred and capitalized in the year ended December 31, 2011.
These have been deferred and are included as deferred transaction
costs in the carrying value of the long-term debt.
2010 Issuances:
On September 29, 2010, the Company issued $900 million of 4.70%
Senior Notes which mature on September 29, 2020. The notes are
redeemable, in whole or in part, at the Company’s option, at any
110 ROGERS COMMUNICATIONS INC. 2011 ANNUAL REPORT