Shaw 2009 Annual Report Download - page 54

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Financing activities
The changes in financing activities during the year were as follows:
(In millions Cdn) 2009 2008 2007
Redemption of COPrS –(100.0) –
Repayment of Videon CableSystems Inc. 8.15% senior
debentures (130.0) ––
Net proceeds on issuance of Cdn $600 million 6.50% senior
notes 593.6 ––
Cost to terminate foreign currency forward contracts –– (0.4)
Repayment of $296.8 million senior notes –(296.8) –
Bank loans and bank indebtedness – net borrowings
(repayments) (99.2) 99.2 (300.4)
Purchase of Class B Non-Voting Shares for cancellation (33.6) (99.8) (104.8)
Dividends (351.9) (303.8) (201.2)
Debt retirement costs (9.2) (4.3) –
Proceeds on bond forward contracts 10.8 – 0.2
Issuance of Class B Non-Voting Shares 57.0 32.5 92.1
Repayment of Partnership debt (0.5) (0.4) (0.4)
Proceeds on $400 million senior unsecured notes –– 400.0
Cash flow used in financing activities 37.0 (673.4) (114.9)
VI. LIQUIDITY AND CAPITAL RESOURCES
In the current year, the Company generated $504.4 million of consolidated free cash flow. Shaw
used its free cash flow along with net proceeds of $593.6 million from its senior notes offering,
proceeds on cancellation of US dollar forward purchase contracts and a bond forward contract of
$24.1 million, proceeds on issuance of Class B Non-Voting Shares of $57.0 million, working
capital reduction of $70.6 million and other net items of $17 million to redeem the Videon
CableSystems Inc. Cdn$130 million senior debentures, purchase $33.6 million of Class B Non-
Voting Shares for cancellation, repay debt and bank indebtedness of $99.2 million, pay common
share dividends of $351.9 million, fund the final cash payment of $152.5 million related to
deposits on wireless spectrum licenses and purchase the Campbell River cable system for
$46.3 million. The remaining $453.2 million was held in cash and short-term securities.
To allow for timely access to capital markets, Shaw filed a short form base shelf prospectus with
securities regulators in Canada and the U.S. on March 11, 2009. The shelf prospectus allows for
the issue of up to an aggregate $2.5 billion of debt and equity securities over a 25 month period.
Pursuant to this shelf prospectus, the Company completed three senior note offerings totaling
$2.5 billion as follows:
kOn March 27, 2009, Shaw issued $600 million of senior notes at a rate of 6.50% due June 2,
2014. Net proceeds (after issue and underwriting expenses) of $593.6 million were used for
debt repayment, working capital and general corporate purposes. Excess funds are being held
in cash and short-term securities.
kOn October 1, 2009, the Company issued $1.25 billion of senior notes at a rate of 5.65% due
2019. Estimated net proceeds (after issuance at a discount of $4.0 million and, issue and
underwriting expenses) of $1.24 billion were used for debt repayment. Subsequent to year
end, the Company redeemed all of its outstanding US $440 million 8.25% senior notes due
50
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009