Rogers 2014 Annual Report Download - page 122

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 21: LONG-TERM DEBT
(In millions of dollars, except interest rates)
Due
date
Principal
amount
Interest
rate 2014 2013
Bank credit facility Floating ––
Senior notes 12014 US 750 6.375% –798
Senior notes 22014 US 350 5.50% –372
Senior notes 12015 US 550 7.50% 638 585
Senior notes 22015 US 280 6.75% 325 298
Senior notes 2016 1,000 5.80% 1,000 1,000
Senior notes 2017 500 3.00% 500 500
Senior notes 2017 250 Floating 250 –
Senior notes 2018 US 1,400 6.80% 1,624 1,489
Senior notes 2019 400 2.80% 400 –
Senior notes 2019 500 5.38% 500 500
Senior notes 2020 900 4.70% 900 900
Senior notes 2021 1,450 5.34% 1,450 1,450
Senior notes 2022 600 4.00% 600 600
Senior notes 2023 US 500 3.00% 580 532
Senior notes 2023 US 850 4.10% 986 904
Senior notes 2024 600 4.00% 600 –
Debentures 12032 US 200 8.75% 232 213
Senior notes 2038 US 350 7.50% 406 372
Senior notes 2039 500 6.68% 500 500
Senior notes 2040 800 6.11% 800 800
Senior notes 2041 400 6.56% 400 400
Senior notes 2043 US 500 4.50% 580 532
Senior notes 2043 US 650 5.45% 754 691
Senior notes 2044 US 750 5.00% 870 –
14,895 13,436
Deferred transaction costs and discounts (108) (93)
Less current portion (963) (1,170)
Total long-term debt 13,824 12,173
1Senior notes originally issued by Rogers Wireless Inc. which are now unsecured obligations of RCI and for which RCP is an unsecured co-obligor.
2Senior notes and debentures originally issued by Rogers Cable Inc. which are now unsecured obligations of RCI and for which RCP is an unsecured guarantor.
Each of the above senior notes are unsecured and guaranteed by RCP,
ranking equally with all of RCI’s other senior notes and debentures,
bank credit facility and letter of credit facilities. We use derivatives to
hedge the foreign exchange risk associated with the principal and
interest components of all of our US dollar-denominated senior notes
and debentures (see note 16).
WEIGHTED AVERAGE INTEREST RATE
Our effective weighted average rate on all debt and short-term
borrowings, as at December 31, 2014, including the effect of all of the
associated debt derivative instruments, was 5.2% (2013 – 5.5%).
BANK CREDIT AND LETTER OF CREDIT FACILITIES
Effective April 16, 2014, we re-negotiated the terms of our bank credit
facility to increase the amount available from $2.0 billion to $2.5 billion
while extending the maturity date from July 20, 2017 to July 19, 2019.
The $2.5 billion bank credit facility is available on a fully revolving basis
until maturity and there are no scheduled reductions prior to maturity.
The interest rate charged on borrowings from the bank credit facility
ranges from nil to 1.25% per annum over the bank prime rate or base
rate, or 0.85% to 2.25% (1.00% to 2.25% prior to April 1, 2014) over the
bankers’ acceptance rate or London Inter-Bank Offered Rate.
In April 2014, we arranged for the return and cancellation of
approximately $0.4 billion of letters of credit that were issued in
relation to the 700 MHz spectrum auction completed in early 2014 and
the corresponding letter of credit facility was permanently cancelled.
As at December 31, 2014, we had a maximum of $2.6 billion of
borrowings available under our bank credit facilities (December 31,
2013 – $2.5 billion), of which there was approximately $0.1 billion
utilized under these facilities related to outstanding letters of credit
(December 31, 2013 – $0.5 billion of letters of credit).
Each of these facilities is unsecured and guaranteed by RCP and ranks
equally with all of our senior notes and debentures.
SENIOR NOTES
Interest is paid on our senior notes as follows:
• semi-annually on all of our fixed rate senior notes and debentures;
and
• quarterly on our floating rate senior notes.
We have the option to redeem each of our fixed rate senior notes and
debentures, in whole or in part, at any time, if we pay the premiums
specified in the corresponding agreements.
118 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT