Rogers 2015 Annual Report Download - page 60

MANAGEMENT’S DISCUSSION AND ANALYSIS
term borrowings. The buyer’s interest in these trade receivables
ranks ahead of our interest. The program restricts us from using the
receivables as collateral for any other purpose. The buyer of our
trade receivables has no claim on any of our other assets.
Bank credit and letter of credit facilities
Effective April 16, 2014, we amended the terms of our existing
revolving credit facility (revolving credit facility) to increase the
maximum amount available from $2.0 billion to $2.5 billion while
extending the maturity date from July 20, 2017 to July 19, 2019.
In April 2015, we borrowed the full amount of a new $1.0 billion
bank credit facility (non-revolving credit facility) which was
established in addition to our existing $2.5 billion revolving credit
facility. The non-revolving credit facility is available on a non-
revolving basis and matures in April 2017 with no scheduled
principal repayments prior to maturity. In December 2015, we
amended our non-revolving bank credit facility to allow partial,
temporary repayment of this facility from December 2015 through
May 2016; the maximum credit limit remains $1.0 billion. The
interest rate charged on borrowings under the non-revolving credit
facility falls within the range of pricing indicated for our revolving
credit facility.
This year, we borrowed $6,025 million (2014 – $1,330 million)
under our revolving and non-revolving credit facilities and repaid
$5,525 million (2014 – $1,330 million).
As at December 31, 2015, we had $500 million (2014 — nil)
outstanding under our revolving and non-revolving credit facilities.
As at December 31, 2015, we had available liquidity of $3.0 billion
(2014 – $2.5 billion) under our $3.6 billion of revolving and non-
revolving credit and letter of credit facilities (2014 – $2.6 billion), of
which we had utilized approximately $0.1 billion (2014 –
$0.1 billion) related to outstanding letters of credit and $0.5 billion
of borrowings (2014 – nil of borrowings). Each of these facilities is
unsecured and guaranteed by RCCI and ranks equally with all of
our senior notes and debentures. See “Dissolution of RCP” for
more information.
Issuance of senior notes and related debt derivatives
The table below provides a summary of the senior notes we issued
during 2015 and 2014, with the proceeds used to repay
outstanding advances under our credit facilities and for general
corporate purposes.
(In millions of dollars, except interest and discount rates)
Date issued
Principal
amount
Due
date
Interest
rate
Discount/premium
at issuance
Total gross
proceeds 1
Transaction costs
and discounts 2
2015 issuances
December 8, 2015 US 700 2025 3.625% 99.252% 937
December 8, 2015 US 300 2044 5.000% 101.700% 401
Total for 2015 1,338 13
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
1Gross proceeds before transaction costs, discounts, and premiums.
2Transaction costs, discounts, and premiums 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.
In 2015, the US$1.0 billion of senior notes was issued pursuant to a
public offering in the US. In 2014, the $1.25 billion of senior notes
issued was pursuant to a public offering in Canada and US$750
million of senior notes issued was pursuant to a separate public
offering in the US.
Concurrent with the 2015 issuances, and the 2014 issuance
denominated in US dollars, we entered into debt derivatives to
convert all interest and principal payments obligations to Canadian
dollars (see “Financial Risk Management” for more information).
All the notes issued are unsecured and guaranteed by RCCI,
ranking equally with all of our other senior unsecured notes and
debentures, bank credit and letter of credit facilities.
Repayment of senior notes and related derivative settlements
This year, we repaid our US$550 million ($702 million) and
US$280 million ($357 million) senior notes that were due in March
2015. At the same time, the associated debt derivatives were
settled at maturity for net proceeds received of $154 million,
resulting in a net repayment of $905 million including settlement of
the associated debt derivatives.
58 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT