Shaw 2014 Annual Report Download - page 97

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2014 and 2013
[all amounts in millions of Canadian dollars except share and per share amounts]
Senior notes
The senior notes are unsecured obligations and rank equally and ratably with all existing and
future senior indebtedness. The fixed rate notes are redeemable at the Company’s option at any
time, in whole or in part, prior to maturity at 100% of the principal amount plus a make-whole
premium.
On January 31, 2014, the Company issued $500 senior notes at a rate of 4.35% due
January 31, 2024 and $300 floating rate senior rates due February 1, 2016. The $300 senior
notes bear interest at an annual rate equal to three month CDOR plus 0.69%.
Other
Burrard Landing Lot 2 Holdings Partnership (the “Partnership”)
The Company has a 33.33% interest in the Partnership which built the Shaw Tower project
with office/retail space and living/working space in Vancouver, BC. In the fall of 2004, the
commercial construction of the building was completed and at that time, the Partnership issued
ten year 6.31% secured mortgage bonds in respect of the commercial component of the Shaw
Tower. In February 2014, the Partnership refinanced its debt. The Partnership received a
mortgage loan and used the proceeds to prepay the outstanding balance of the previous
mortgage and loan excess funds to each of its partners. The mortgage loan matures on
November 1, 2024 and bears interest at 4.683% compounded semi-annually with interest only
payable for the first five years. The mortgage loan is collateralized by the property and the
commercial rental income from the building with no recourse to the Company.
Debt retirement costs
On February 18, 2014, the Company redeemed the 6.50% senior notes. In connection with the
early redemption, the Company incurred costs of $7 and wrote-off the remaining finance costs
of $1.
Debt covenants
The Company and its subsidiaries have undertaken to maintain certain covenants in respect of
the credit agreements and trust indentures described above. The Company and its subsidiaries
were in compliance with these covenants at August 31, 2014.
Long-term debt repayments
Mandatory principal repayments on all long-term debt in each of the next five years and
thereafter are as follows:
$
2015 –
2016 600
2017 400
2018 –
2019 –
Thereafter 3,740
4,740
93