Rogers 2014 Annual Report Download - page 123

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Issuance of senior notes
The table below provides a summary of the senior notes that we issued in 2014 and 2013 (see note 30).
(In millions of dollars, except interest and discount rates)
Date
Issued Principal amount
Due
date
Interest
rate
Discount at
issuance
Total
gross proceeds 1
(Cdn$)
Transaction costs
and discounts 2
(Cdn$)
2014 issuances
March 10, 2014 250 2017 Floating 100.000% 250
March 10, 2014 400 2019 2.80% 99.972% 400
March 10, 2014 600 2024 4.00% 99.706% 600
March 10, 2014 US 750 2044 5.00% 99.231% 832
Total for 2014 2,082 24
2013 issuances
March 7, 2013 US 500 2023 3.00% 99.845% 515
March 7, 2013 US 500 2043 4.50% 99.055% 515
October 2, 2013 US 850 2023 4.10% 99.813% 877
October 2, 2013 US 650 2043 5.45% 99.401% 671
Total for 2013 2,578 35
1Gross proceeds before transaction costs and discounts (see note 30)
2Transaction costs and discounts are included as deferred transaction costs and discounts in the carrying value of the long-term debt, and recognized in net income using the
effective interest method.
Repayment of senior notes and related derivative settlements
During 2014, we repaid or repurchased our US$750 million
($834 million) and US$350 million ($387 million) senior notes due
2014, totalling $1,221 million (see note 30). In addition, the debt
derivatives related to these senior notes matured in March 2014.
During 2013, we repaid or repurchased our US$350 million
($356 million) senior notes due June 2013 (see note 30). At the same
time, the associated debt derivatives were also settled at maturity.
PRINCIPAL REPAYMENTS
The table below shows the principal repayments on our long-term
debt due in each of the next five years and thereafter as at
December 31, 2014.
(In millions of dollars)
2015 963
2016 1,000
2017 750
2018 1,624
2019 900
Thereafter 9,658
14,895
FOREIGN EXCHANGE
We recorded $11 million and $23 million in foreign exchange losses in
2014 and 2013 in finance costs in the Consolidated Statements of
Income. The majority of these losses in 2013 related to the translation
of long-term debt that was not hedged on an accounting basis. 100%
of the foreign exchange risk related to the principal and interest
components of our US dollar-denominated debt was hedged for
accounting purposes throughout 2014.
TERMS AND CONDITIONS
As at December 31, 2014 and 2013, we were in compliance with all
financial covenants, financial ratios and all of the terms and conditions
of our long-term debt agreements. There were no financial leverage
covenants in effect other than those under our bank credit and letter of
credit facilities.
The 8.75% debentures due in 2032 contain debt incurrence tests and
restrictions on 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, 2014, 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 as long as the investment
grade ratings are maintained. Our other senior notes do not have any
of these restrictions, regardless of the related credit ratings. The
repayment dates of certain debt agreements can also be accelerated if
there is a change in control of RCI.
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 119