Virgin Media 2010 Annual Report Download - page 80

Following the amendments to the Senior Facilities Agreement, the remaining principal payments on our
senior credit facility were scheduled as follows (in millions):
Date Amount
Tranche A
June 30, 2011 ...................................... £ 150.0
June 30, 2012 ...................................... 175.0
June 30, 2013 ...................................... 200.0
June 30, 2014 ...................................... 7.5
June 30, 2015 ...................................... 467.5
Tranche B
December 31, 2015 ................................. 675.0
Total ............................................ £1,675.0
Mandatory Prepayments
Our senior credit facility must be prepaid in certain circumstances by certain amounts, including:
• 50% of the net cash proceeds of any issuance of equity greater than £10 million (above an aggregate
prepayment threshold) subject to customary exceptions, which percentage may be reduced to 25% or
0% if certain leverage ratios are met;
• from the net proceeds of insurance claims subject to an aggregate prepayment threshold amount, other
minimum thresholds and customary exceptions; and
• from the net proceeds of certain asset disposals subject to an aggregate prepayment threshold amount,
other minimum thresholds and customary exceptions.
In addition, our senior credit facility must be repaid and all commitments will be cancelled upon the
occurrence of a change of control.
Interest Margins
The annual rate of interest payable under our senior credit facility is the sum of (i) the London Intrabank
Offer Rate (LIBOR), plus (ii) the applicable interest margin and (iii) the applicable cost of complying with any
mandatory costs requirement.
The applicable interest margin for Tranche A and the RCF under our senior credit facility depends upon the
total net leverage ratio of the bank group (which comprises VMIH and most of its subsidiaries, and certain other
operating companies which are subsidiaries of Virgin Media Inc. but not of VMIH) then in effect as set forth
below:
Leverage Ratio Margin
Greater than 3.75:1.00 ................................. 3.50%
Equal to or less than 3.75:1.00 but greater than 3.25:1.00 ..... 3.25%
Equal to or less than 3.25:1.00 but greater than 2.75:1.00 ..... 3.00%
Equal to or less than 2.75:1.00 .......................... 2.75%
Leverage ratio is calculated by comparing consolidated net debt at any quarter end date against consolidated
operating cash flow on a rolling 12 month basis ending on such quarter date (such defined terms have the same
meaning as in the Senior Facilities Agreement).
The applicable interest margin for Tranche B is 3.75%.
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