Shaw 2015 Annual Report Download - page 82

Shaw Communications Inc.
Notes to the Consolidated Financial Statements
August 31, 2015 and 2014
[all amounts in millions of canadian dollars except share and per share amounts]
13. LONG-TERM DEBT
2015 2014
Effective
interest
rates
%
Long-term
debt at
amortized
cost(1)
$
Adjustment
for
finance
costs(1)
$
Long-term
debt
repayable at
maturity
$
Long-term
debt at
amortized
cost(1)
$
Adjustment
for
finance
costs(1)
$
Long-term
debt
repayable at
maturity
$
Corporate
Bank loans Variable 434 – 434 –– –
Cdn fixed rate senior notes-
6.15% due May 9, 2016 6.34 299 1 300 298 2 300
5.70% due March 2, 2017 5.72 399 1 400 398 2 400
5.65% due October 1, 2019 5.69 1,245 5 1,250 1,244 6 1,250
5.50% due December 7, 2020 5.55 497 3 500 497 3 500
4.35% due January 31, 2024 4.35 497 3 500 497 3 500
6.75% due November 9, 2039 6.89 1,418 32 1,450 1,417 33 1,450
4,789 45 4,834 4,351 49 4,400
Cdn variable rate senior notes-
Due February 1, 2016 300 – 300 299 1 300
5,089 45 5,134 4,650 50 4,700
Other
ViaWest – credit facility Variable 506 12 518 –– –
ViaWest – other Various 34 – 34 –– –
Burrard Landing Lot 2 Holdings Partnership 4.68 40 – 40 40 – 40
Total consolidated debt 5,669 57 5,726 4,690 50 4,740
Less current portion 608 1 609 –– –
5,061 56 5,117 4,690 50 4,740
(1) Long-term debt is presented net of unamortized discounts and finance costs.
Corporate
Bank loans
During 2012, a syndicate of banks provided the Company with an unsecured $1 billion credit facility which includes a
maximum revolving term or swingline facility of $50. During 2014, the Company amended the terms of the facility to extend
the maturity date from January 2017 to December 2019. The credit facility has a feature whereby the Company may request an
additional $500 of borrowing capacity so long as no event of default or pending event of default has occurred and is continuing
or would occur as a result of the increased borrowings. No lender has any obligation to participate in the requested increase
unless it agrees to do so at its sole discretion. Funds are available to the Company in both Canadian and US dollars. At
August 31, 2015, $1 has been drawn as committed letters of credit against the revolving term facility. Interest rates fluctuate
with Canadian prime and bankers’ acceptance rates, US bank base rates and LIBOR rates. Excluding the revolving term facility,
the effective interest rate on actual borrowings under the credit facility during 2015 was 1.57%. No amounts were drawn under
the under the credit facility during 2014. The effective interest rate on the revolving term facility for 2015 was 3.24% (2014 –
3.38%).
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%.
80 Shaw Communications Inc. 2015 Annual Report