Shaw 2010 Annual Report Download - page 64

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The cash used in investing activities in 2009 increased over the prior year due to the final deposits
for wireless spectrum licenses, the acquisition of the Campbell River cable system and higher
capital expenditures.
Financing activities
The changes in financing activities during the year were as follows:
(In millions Cdn) 2010 2009 2008
Issuance of Cdn $1.25 billion 5.65% senior notes 1,246.0 ––
Issuance of Cdn $650 million 6.75% senior notes 645.6 ––
Issuance of Cdn $600 million 6.50% senior notes –598.2 –
Senior notes issuance costs (10.1) (4.6) –
Redemption of US $440 million 8.25% senior notes (465.5) ––
Redemption of US $225 million 7.25% senior notes (238.1) ––
Redemption of US $300 million 7.20% senior notes (312.6) ––
Payments on cross-currency agreements (291.9) ––
Repayment of Videon CableSystems Inc. 8.15% senior
debentures –(130.0) –
Repayment of $296.8 million senior notes –– (296.8)
Redemption of COPrS –– (100.0)
Bank loans and bank indebtedness – net borrowings
(repayments) –(99.2) 99.2
Purchase of Class B Non-Voting Shares for cancellation (118.1) (33.6) (99.8)
Dividends (372.1) (351.9) (303.8)
Debt retirement costs (79.5) (9.2) (4.3)
Proceeds on bond forward contracts –10.8 –
Issuance of Class B Non-Voting Shares 47.1 57.0 32.5
Repayment of Partnership debt (0.5) (0.5) (0.4)
Cash flow provided by (used in) financing activities 50.3 37.0 (673.4)
VI. LIQUIDITY AND CAPITAL RESOURCES
In the current year, the Company generated $515.1 million of free cash flow. Shaw used its free
cash flow along with net proceeds of $1.88 billion from its two senior notes offerings, cash of
$236.5 million, proceeds on issuance of Class B Non-Voting Shares of $47.1 million, working
capital reduction of $184.0 million and other net items of $13.1 million to redeem the three series
of US dollar denominated senior notes for $1.02 billion, pay $291.9 million on cross-currency
interest rate swap agreements, pay $79.5 million in debt retirement costs, pay $744.1 million in
respect of its initial investment in CW Media, purchase $118.1 million of Class B Non-Voting
Shares for cancellation, pay common share dividends of $372.1 million, purchase the Hamilton
cable system for $158.8 million and invest $96.7 million in the Wireless infrastructure build.
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 allowed for
the issue of up to an aggregate $2.5 billion of debt and equity securities over a 25 month period.
60
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010