Virgin Media 2007 Annual Report Download - page 114

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Long Term Debt (Continued)
Principal repayments in respect of £2,337 million of the term loan facilities are due semi-annually
beginning in September 2009 and ending on March 3, 2011, and the remaining term loan facilities are
repayable in full on their maturity dates, which range from September 3, 2012 through March 3, 2013.
We are also required to make principal repayments out of excess cash flows if certain criteria are met.
The facility is secured through a guarantee from Virgin Media Finance PLC. In addition, the bulk
of the facility is secured through guarantees and first priority pledges of the shares and assets of
substantially all of the operating subsidiaries of Virgin Media Investment Holdings Limited, or VMIH,
and of receivables arising under any intercompany loans to those subsidiaries. We are subject to
financial maintenance tests under the facility, including a test of liquidity, coverage and leverage ratios
applied to us and certain of our subsidiaries. As of December 31, 2007, we were in compliance with
these covenants.
The agreements governing the senior notes and the senior credit facility significantly restrict the
ability of our subsidiaries to transfer funds to us in the form of cash dividends, loans or advances. In
addition, the agreements significantly, and, in some cases, absolutely restrict our ability and the ability
of most of our subsidiaries to:
• incur or guarantee additional indebtedness;
• pay dividends or make other distributions, or redeem or repurchase equity interests or
subordinated obligations;
• make investments;
• sell assets, including the capital stock of subsidiaries;
• enter into sale and leaseback transactions or certain vendor financing arrangements;
• create liens;
• enter into agreements that restrict the restricted subsidiaries’ ability to pay dividends, transfer
assets or make intercompany loans;
• merge or consolidate or transfer all or substantially all of our assets; and
• enter into transactions with affiliates.
Long term debt repayments, excluding capital leases, as of December 31, 2007, are due as follows
(in millions):
Year ended December 31:
2008 ................................................................ £ 1.8
2009 ................................................................ 266.9
2010 ................................................................ 1,106.2
2011 ................................................................ 966.3
2012 ................................................................ 2,167.9
Thereafter ............................................................ 1,332.5
Total debt payments ..................................................... £5,841.6
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