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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
Fi
nanc
i
ng act
i
v
i
t
i
es
The changes in financing activities during 2013 and 2012 were as follows:
(
In
$
millions Cdn
)
2013 2012
Bank cred
i
t
f
ac
i
l
i
ty arrangement cost
s
–
(
4
)
Re
p
a
y6
.
1% S
en
i
or unsecured notes
(
45
0)
–
Dividend
s
(
332
)
(333
)
D
i
str
i
but
i
ons
p
a
i
d to non-controll
i
n
gi
nterest
s
(19)
(26)
C
ontribution received from non-controlling interes
t
1
–
Issuance o
fC
lass B Non-Vot
i
n
gS
hares
69
17
Repayment of Partnership deb
t
(
1
)
(
1
)
C
ash flow used in financing activities
(
732
)
(
347
)
V
I. LI
Q
UIDITY AND CAPITAL RESOURCE
S
I
n the current
y
ear, the Com
p
an
yg
enerated $604 million of free cash flow. Shaw used its fre
e
cash flow along with cash of
$
5 million, the net proceeds of
$
589 million from the transaction
s
with Ro
g
ers,
p
roceeds on issuance of Class B Non-Votin
g
Shares of
$
69 million and other net
items of $165 million (
p
rimaril
y
in res
p
ect of a reduction in workin
g
ca
p
ital includin
g
curren
t
t
axes on non-operating items) to repay the 6.1%
$
450 million senior notes, fund
$
300 millio
n
in contributions to the RCA in res
p
ect of a non-re
g
istered defined benefit
p
ension
p
lan,
p
a
y
common share dividends of $319 million,
p
urchase Envision for $222 million, invest an
additional net
$
31 million in program rights and fund
$
110 million of accelerated capita
l
s
p
end. Due to timin
g
, the net
p
roceeds from the Ro
g
ers transactions have been tem
p
oraril
y
u
sed
i
non
g
o
i
n
g
o
p
erat
i
ons to the extent the cash was not re
q
u
i
red to
f
und accelerated ca
pi
ta
l
inv
est
m
e
n
ts.
To allow
f
or t
i
mel
y
access to ca
pi
tal markets, the
C
om
p
an
yfi
led a short
f
orm base shel
f
prospectus w
i
th secur
i
t
i
es regulators
i
n
C
anada and the U.
S
. on May
13
,
2013
. The shel
f
prospectus allows for the issue up to an aggregate
$
4 billion of debt and equity securities over
a
2
5 month
p
er
i
od.
On November 20, 2013 the Company repaid the 7.5%
$
350 million senior unsecured notes
.
The
C
om
p
an
y
’s DRIP allows holders o
fC
lass A
S
hares and
C
lass B Non-Vot
i
n
gS
hares who ar
e
res
i
dents o
fC
anada to automat
i
cally re
i
nvest monthly cash d
i
v
i
dends to acqu
i
re add
i
t
i
onal
Class B Non-Voting Shares. Class B Non-Voting Shares distributed under the Company’s DRIP
are new shares
i
ssued
f
rom treasur
y
at a
2%
d
i
scount
f
rom the 5 da
y
we
ig
hted avera
g
e market
pr
i
ce
i
mmed
i
ately preced
i
ng the appl
i
cable d
i
v
i
dend payment date. The DRIP has resulted
i
n
cash savings and incremental Class B Non-Voting Shares of
$
126 million in 2013
.
O
n December 5,
2012 S
haw rece
i
ved the approval o
f
the T
S
X to renew
i
ts normal course
i
ssuer
bid to purchase its Class B Non-Voting Shares for a further one year period. The Company is
author
i
zed to ac
q
u
i
re u
p
to
20
,
000
,
000 C
lass B Non-Vot
i
n
gS
hares dur
i
n
g
the
p
er
i
od
D
ecember 7,
2012
to December
6
,
2013
. No shares were repurchased by the
C
ompany.
At Au
g
ust 31, 2013, the Com
p
an
y
held
$
422 million in cash and had access to
$
1 billion
u
nder
i
ts cred
i
t
f
ac
i
l
i
t
y
. Based on the ava
i
lable cred
i
t
f
ac
i
l
i
t
y
and
f
orecasted
f
ree cash
f
low, th
e
Company expects to have sufficient liquidity to fund operations and obligations during the
53