Shaw 2009 Annual Report Download - page 55

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April 11, 2010 and US $225 million 7.25% senior notes due April 6, 2011 on October 13,
2009, and its US $300 million 7.20% senior notes due December 15, 2011 on October 20,
2009.
kOn November 9, 2009, the Company issued $650 million of senior notes at a rate of 6.75%
due 2039. Estimated net proceeds (after issuance at a discount of $4.4 million and issue and
underwriting expenses) of $642 million will be used for general corporate purposes, working
capital, capital expenditures and wireless investments.
On November 16, 2009, Shaw received the approval of the TSX to renew its normal course issuer
bid to purchase its Class B Non-Voting Shares for a further one year period. The Company is
authorized to acquire up to 35,000,000 Class B Non-Voting Shares during the period November 19,
2009 to November 18, 2010 representing approximately 10% of the public float of Class B Non-
Voting Shares. On November 26, 2009, the Company repurchased 1,500,000 of its Class B Non-
Voting Shares for cancellation for $27,893.
On November 12, 2008, Shaw received the approval of the TSX to renew its normal course issuer
bid to purchase its Class B Non-Voting Shares for a one year period. The Company was authorized to
acquire up to 35,000,000 Class B Non-Voting Shares during the period November 19, 2008 to
November 18, 2009. During the first quarter of 2009, the Company repurchased 1,683,000
Class B Non-Voting Shares for $33.6 million under the previous normal course issuer bid which
expired on November 18, 2008.
At August 31, 2009, Shaw held $453.2 million in cash and short-term securities and had access to
$1 billion of available credit facilities. Based on cash balances, available credit facilities and
forecasted free cash flow, the Company expects to have sufficient liquidity to fund operations and
obligations during the upcoming fiscal year. On a longer-term basis, Shaw expects to generate free
cash flow and have borrowing capacity sufficient to finance foreseeable future business plans and
refinance maturing debt.
Debt structure
Shaw structures its borrowings generally on a stand-alone basis. The borrowings of Shaw are
unsecured. There are no restrictions that prevent the subsidiaries of the Company from transferring
funds to Shaw.
Shaw’s borrowings are subject to covenants which include maintaining minimum or maximum
financial ratios. At August 31, 2009, Shaw is in compliance with these covenants and based on
current business plans, the Company is not aware of any condition or event that would give rise to
non-compliance with the covenants over the life of the borrowings.
Off-balance sheet arrangement and guarantees
Guarantees
Generally it is not the Company’s policy to issue guarantees to non-controlled affiliates or third
parties; however, it has entered into certain agreements as more fully described in Note 16 to the
Consolidated Financial Statements. As disclosed thereto, Shaw believes it is remote that these
agreements would require any cash payment.
51
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2009