Virgin Media 2006 Annual Report Download - page 165

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Long term Debt (Continued)
Long term debt repayments, excluding capital leases and mortgages, as of December 31, 2006 are due as follows (in millions):
Year ended December 31:
2007 £ 127.3
2008 474.5
2009 740.4
2010 1,107.1
2011 967.1
Thereafter 2,965.7
Total debt payments £6,382.1
5,029.0
On February 4, 2005 we voluntarily prepaid £500 million of principal outstanding under our prior senior credit facility using the
proceeds from the sale of our Broadcast operations. On June 14, 2005 and July 14, 2005 we repaid a further £200 million and
£23 million, respectively, using the proceeds from the sale of our Irish operations. On February 13, 2006, we voluntarily prepaid £100
million of principal outstanding. The convertible unsecured loan notes due 2058 due to affiliates, of which £76.7 million were
denominated in pounds sterling and $707.1 million were denominated in U.S. Dollars, were redeemed in February 2005.
On March 3, 2006, the full outstanding balance of £1,358.1 million was repaid in respect of our prior senior credit facility,
£1,686.9 million was repaid in respect of Telewest’s then existing senior credit facilities and £102.0 million was repaid in respect of
Virgin Media TV’s then existing senior credit facility. Our and Telewest’s then existing facilities were repaid in full utilizing
borrowings under the new senior credit facility. The Virgin Media TV facility was repaid from cash on hand.
On September 27, 2006, we prepaid £120.0 million of our senior credit facility utilizing available cash.
11. Derivative Financial Instruments and Hedging Activities
During the year we entered into a number of interest rate swaps to fix at least two thirds of the interest payments on our current
financing arrangements. On October 2, 2005, we and Virgin Media entered into an agreement with several financial institutions to
provide financing in connection with the merger agreement with Telewest. As a result of this agreement, we have discontinued the
hedge designation on October 2, 2005 for the interest rate swaps with notional amounts totalling £2,315 million, $545 million and
€251 million related to the interest payments on the then outstanding senior debt facilities. Net unrealized losses of £9.1 million,
which had been included in other comprehensive income at September 30, 2005, were reclassified to earnings and net unrealized gains
of £6.7 million and £2.0 million have been taken directly to earnings in the final quarter of 2005 and year ended December 31, 2006,
respectively. These instruments expire on dates between April 2007 and December 2013 and have not been re−designated as hedges
for accounting purposes.
F−86
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007