Virgin Media 2009 Annual Report Download - page 82

The applicable interest margins for Tranches B1—B12 and Tranche C are as follows:
Facility Margin
B1......................................................... 2.125%
B2......................................................... 2.125%
B3......................................................... 2.000%
B4......................................................... 2.000%
B5......................................................... 2.125%
B6......................................................... 2.125%
B7......................................................... 3.625%
B8......................................................... 3.625%
B9......................................................... 3.500%
B10........................................................ 3.500%
B11........................................................ 3.625%
B12........................................................ 3.625%
C ......................................................... 2.750%
Guarantees; Security
The security granted in respect of our senior credit facility includes substantially all of the assets of
the bank group. Our senior credit facility requires that members of the bank group which generate not
less than 80% of the consolidated operating cash flow of the bank group in any financial year
guarantee the payment of all sums payable under our senior credit facility (other than Tranche C
thereof) and such members are required to grant first-ranking security over all or substantially all of
their assets to secure the payment of all sums payable under our senior credit facility (other than
Tranche C thereof). Virgin Media Finance PLC, or Virgin Media Finance, has also provided a
guarantee for the payment of all sums payable under our senior credit facility and has secured its
obligations under that guarantee by granting security over its interest in the intercompany debt owed to
it by its direct subsidiary VMIH and over all of the shares in VMIH. Tranche C under our senior credit
facility also has the benefit of a senior guarantee granted by Virgin Media Finance. That guarantee will
share in the security of Virgin Media Finance granted to the senior credit facility, but will receive
proceeds only after the other tranches. Tranche C does not benefit from guarantees or security granted
by other members of the group.
Financial Maintenance Covenants
Our senior credit facility contains the following financial covenant ratios (each as defined in our
senior credit facility):
• Consolidated net debt to consolidated operating cashflow, which we refer to as the Leverage
Ratio;
• Consolidated operating cashflow to consolidated total net cash interest payable, which we refer
to as the Interest Coverage Ratio; and
• Bank group cashflow to consolidated debt service, which we refer to as the Debt Service
Coverage Ratio.
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