Shaw 2011 Annual Report Download - page 69

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2011
Financing activities
The changes in financing activities during the years were as follows:
(In millions Cdn) 2011 2010 2009
Issuance of Cdn $500 million 5.50% senior notes 498.2 ––
Issuance of Cdn $800 million 6.75% senior notes 778.9 ––
Issuance of Preferred Shares 300.0 ––
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 and Preferred Shares issuance costs (17.3) (10.1) (4.6)
Repayment of CW Media US $389.6 million term loan (394.9) ––
Redemption of CW Media US $338.3 13.5% senior notes (333.9) ––
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)
Bank loans and bank indebtedness – net repayments –– (99.2)
Purchase of Class B Non-Voting Shares for cancellation –(118.1) (33.6)
Dividends paid to common shareholders (352.0) (372.1) (351.9)
Distributions paid to non-controlling interests (21.9) ––
Debt retirement costs –(79.5) (9.2)
Senior notes prepayment premium (19.5) ––
Proceeds on bond forward contracts –– 10.8
Issuance of Class B Non-Voting Shares 45.9 47.1 57.0
Repayment of Partnership debt (0.6) (0.5) (0.5)
Cash flow provided by financing activities 482.9 50.3 37.0
VI. LIQUIDITY AND CAPITAL RESOURCES
In the current year, the Company generated $603.0 million of free cash flow. Shaw used its
free cash flow along with net proceeds of $1.27 billion from its three senior notes issuances,
net proceeds of $290.9 million from its Preferred Share issuance, proceeds on issuance of
Class B Non-Voting Shares of $45.9 million and other net items of $23.2 million to pay
$981.2 million to complete the broadcasting business acquisition including repayment of the
CW Media term loan and breakage of related currency swaps, fund the net change in working
capital requirements of approximately $218.2 million, pay common share dividends of $352.0
million, fund cash requirements of the wireless discontinued operations of $148.0 million, pay
$353.4 million to redeem the Media senior unsecured notes including the prepayment
premium, purchase cable systems for $35.7 million and increase cash and cash equivalents by
$143.6 million.
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