Virgin Media 2010 Annual Report Download - page 205

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 8—Long Term Debt (continued)
The effective interest rate on the senior credit facility was 4.2% and 5.3% as at December 31, 2010 and
2009, respectively. The effective interest rate on the floating rate loan notes was 5.3% as at December 31, 2010
and 2009.
The terms of the senior notes and senior credit facility as at December 31, 2010 are summarized below.
Senior Notes
Our parent, Virgin Media Finance PLC, issued senior notes due 2014 on April 13, 2004. On July 25, 2006,
Virgin Media Finance PLC issued $550 million U.S. dollar denominated 9.125% senior notes due 2016 to repay
in part an alternative senior bridge facility whose proceeds had been loaned to us for the acquisition of Telewest
UK Limited. All senior notes have been guaranteed by us pursuant to a senior subordinated guarantee. The terms
of our senior notes and loan notes due to Virgin Media Finance PLC and loan notes due to Virgin Media (UK)
Group Inc are summarized below.
•9.125% Senior Notes due August 15, 2016—The principal amount at maturity is $550 million. Interest
is payable semi-annually on February 15 and August 15 commencing February 15, 2007.
•6.50% Loan Notes due November 15, 2016—The principal amount at maturity is $1,000 million.
Interest is payable semi-annually on May 15 and November 15 commencing November 15, 2008.
•9.50% Senior Notes due August 15, 2016—The principal amount at maturity is $1,350 million and
€180 million. Interest is payable semi-annually on February 15 and August 15 commencing
February 15, 2010.
• 6.50% Senior Secured Notes due January 15, 2018—The principal amount at maturity is
$1,000 million. Interest is payable semi-annually on June 15, and December 15 commencing June 15,
2010
• 7.00% Senior Secured Notes due January 15, 2018—The principal amount at maturity is £875 million.
Interest is payable semi-annually on June 15, and December 15 commencing June 15, 2010
• 8.375% Senior Notes due October 15, 2019—The principal amount at maturity is $600 million. Interest
is payable semi-annually on April 15, and October 15 commencing April 15, 2010.
• 8.875% Senior Notes due October 15, 2019—The principal amount at maturity is £350 million. Interest
is payable semi-annually on April 15, and October 15 commencing April 15, 2010.
•Floating Rate Loan Notes due October 15, 2012—The principal amount at maturity is $100 million.
The interest rate on the floating rate loan notes is the three-month LIBOR plus 5.0%. Interest is payable
quarterly on January 15, April 15, July 15 and October 15 commencing July 15, 2004.
On January 19, 2010, Virgin Media Secured Finance PLC, a wholly owned subsidiary of VMIH, issued
$1.0 billion aggregate principal amount of 6.50% senior secured notes due 2018 and £875 million aggregate
principal amount of 7.00% senior secured notes due 2018. Interest is payable on June 15 and December 15 each
year, beginning on June 15, 2010. The senior secured notes due 2018 rank pari passu with our senior credit
facility and, subject to certain exceptions, share in the same guarantees and security which have been granted in
favor of our senior credit facility. We used the net proceeds to make repayments totaling £1,453.0 million under
our old senior credit facility.
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