Shaw 2013 Annual Report Download - page 97

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S
haw
C
ommunications Inc
.
N
O
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
August 31, 2013 and 201
2
[all amounts in millions of Canadian dollars exce
p
t share and
p
er share amounts
]
Cor
p
orat
e
Ba
nk l
oa
n
s
D
uring 2012, a syndicate of banks provided the Company with an unsecured
$
1 billion credi
t
f
acilit
y
which includes a maximum revolvin
g
term or swin
g
line facilit
y
of
$
50 and matures in
J
anuar
y 201
7. The cred
i
t
f
ac
i
l
i
t
y
has a
f
eature whereb
y
the
C
om
p
an
y
ma
y
re
q
uest an add
i
t
i
ona
l
$
500 of borrowing capacity so long as no event of default or pending event of default has
o
ccurred and is continuing or would occur as a result of the increased borrowings. No lende
r
h
as an
y
obl
ig
at
i
on to
p
art
i
c
ip
ate
i
n the re
q
uested
i
ncrease unless
i
ta
g
rees to do so at
i
ts sol
e
d
iscretion. This facility replaced the prior credit and operating loan facilities which were
scheduled to mature in May 2012. Funds are available to the Company in both Canadian an
d
U
S dollars. At Au
g
ust 31, 2013, $1 has been drawn as committed letters of credit a
g
ainst th
e
revolv
i
ng term
f
ac
i
l
i
ty. Interest rates
f
luctuate w
i
th
C
anad
i
an pr
i
me and bankers’ acceptance
rates, US bank base rates and LIBOR rates. Excluding the revolving term facility, the effectiv
e
i
nterest rate on actual borrow
i
n
g
s under the cred
i
t
f
ac
i
l
i
t
y
dur
i
n
g 2013
was
3
.4
9% (2012 –
ni
l
)
. The e
ff
ect
i
ve
i
nterest rate on the revolv
i
ng term
f
ac
i
l
i
ty
f
or
2013
was
3% (2012
–
3%)
.
S
enior note
s
The sen
i
or notes are unsecured obl
ig
at
i
ons and rank e
q
uall
y
and ratabl
y
w
i
th all ex
i
st
i
n
g
an
d
f
uture sen
i
or
i
ndebtedness. The notes are redeemable at the
C
ompany’s opt
i
on at any t
i
me,
in
whole or in part, prior to maturity at 100% of the principal amount plus a make-whol
e
p
rem
i
um
.
Other
B
urrard Landin
g
Lot 2 Holdin
g
s Partnershi
p
The Company has a 33.33% interest in the Partnership which built the Shaw Tower project
with office/retail s
p
ace and livin
g
/workin
g
s
p
ace in Vancouver, BC. In the fall of 2004, the
commerc
i
al construct
i
on o
f
the bu
i
ld
i
n
g
was com
p
leted and at that t
i
me, the Partnersh
ip i
ssue
d
t
en year secured mortgage bonds in respect of the commercial component of the Shaw Tower
.
The bonds bear interest at 6.31% com
p
ounded semi-annuall
y
and are collateralized b
y
the
p
ro
p
ert
y
and the commerc
i
al rental
i
ncome
f
rom the bu
i
ld
i
n
g
w
i
th no recourse to the
C
om
p
an
y
.
D
e
b
t covenant
s
The Com
p
an
y
and its subsidiaries have undertaken to maintain certain covenants in res
p
ect of
t
he cred
i
ta
g
reements and trust
i
ndentures descr
i
bed above. The
C
om
p
an
y
and
i
ts subs
i
d
i
ar
i
e
s
were in compliance with these covenants at August 31, 2013
.
93