Virgin Media 2009 Annual Report Download - page 83

The minimum required ratios are outlined below:
Debt
Interest Service
Leverage Coverage Coverage
Quarter Date Ratio Ratio Ratio
December 31, 2009 .............................. 4.25:1 2.60:1 1:1
March 31, 2010 ................................. 4.25:1 2.60:1 1:1
June 30, 2010 .................................. 4.10:1 2.65:1 1:1
September 30, 2010 .............................. 4.00:1 2.70:1 1:1
December 31, 2010 .............................. 3.90:1 2.75:1 1:1
March 31, 2011 ................................. 3.75:1 2.85:1 1:1
June 30, 2011 .................................. 3.70:1 2.90:1 1:1
September 30, 2011 .............................. 3.60:1 3.00:1 1:1
December 31, 2011 .............................. 3.50:1 3.05:1 1:1
March 31, 2012 ................................. 3.50:1 3.10:1 1:1
June 30, 2012 .................................. 3.00:1 3.20:1 1:1
September 30, 2012 .............................. 3.00:1 4.00:1 1:1
December 31, 2012 and thereafter ................... 3.00:1 4.00:1 1:1
As shown in the table above, the required levels become more restrictive over time. As a result, we
will need to continue to improve our operating performance over the next several years to meet these
levels. Failure to meet these covenant levels would result in a default under our senior credit facility.
As of December 31, 2009, we were in compliance with these covenants.
Events of Default
The occurrence of events of default specified in our senior credit facility entitle the lenders to
cancel any undrawn portion of that facility, require the immediate payment of all amounts outstanding
under that facility and enforce or direct the enforcement of the security interests that have been
granted. These events of default include, among other things:
• failure to make payments of principal or interest when due;
• breaches of representations;
• breaches of obligations and undertakings under our senior credit facility and related finance
documents, including failure to meet financial covenants;
• cross defaults;
• the occurrence of insolvency contingencies affecting Virgin Media Inc., the issuer, any borrower
under our senior credit facility or any guarantor that is a material subsidiary;
• repudiation of our senior credit facility and the other finance documents;
• illegality; and
• the occurrence of any event or circumstance which would have a material adverse effect on the
business, assets or financial condition of the obligors under our senior credit facility taken as a
whole or any obligor’s payment or other material obligations under our senior credit facility or
related finance documents.
Senior Unsecured Notes
In November 2009, Virgin Media Finance issued U.S. dollar denominated 8.375% senior notes due
2019 with a principal amount outstanding of $600 million and sterling denominated 8.875% senior
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