Virgin Media 2010 Annual Report Download - page 81

Guarantees; Security
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 (excluding the consolidated net income attributable to any
joint venture) in any financial year guarantee the payment of all sums payable under our senior credit facility 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. Virgin Media Finance PLC 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.
Financial Maintenance Covenants
Our senior credit facility contains the following financial covenant ratios:
• Consolidated net debt to consolidated operating cashflow, referred to as the Leverage Ratio; and
• Consolidated operating cashflow to consolidated total net cash interest payable, referred to as the
Interest Coverage Ratio.
These covenant ratios are calculated with respect to our bank group companies, pursuant to the definitions
contained in our senior credit facility, and are subject to certain adjustments provided therein.
The minimum required ratios are outlined below:
Quarter Date
Leverage
Ratio
Interest
Coverage
Ratio
December 31, 2010 ........................................................ 4.70:1.00 2.65:1.00
March 31, 2011 ........................................................... 4.60:1.00 2.75:1.00
June 30, 2011 ............................................................ 4.40:1.00 2.80:1.00
September 30, 2011 ........................................................ 4.35:1.00 2.85:1.00
December 31, 2011 ........................................................ 3.75:1.00 2.95:1.00
March 31, 2012 ........................................................... 3.75:1.00 3.00:1.00
June 30, 2012 ............................................................ 3.75:1.00 3.05:1.00
September 30, 2012 ........................................................ 3.75:1.00 3.10:1.00
December 31, 2012 ........................................................ 3.75:1.00 3.10:1.00
March 31, 2013 ........................................................... 3.75:1.00 3.15:1.00
June 30, 2013 ............................................................ 3.75:1.00 3.20:1.00
September 30, 2013 ........................................................ 3.75:1.00 3.25:1.00
December 31, 2013 ........................................................ 3.75:1.00 3.35:1.00
March 31, 2014 ........................................................... 3.75:1.00 3.45:1.00
June 30, 2014 ............................................................ 3.75:1.00 3.55:1.00
September 30, 2014 ........................................................ 3.75:1.00 3.70:1.00
December 31, 2014 ........................................................ 3.75:1.00 3.80:1.00
March 31, 2015 ........................................................... 3.75:1.00 3.95:1.00
June 30, 2015 ............................................................ 3.75:1.00 4.00:1.00
September 30, 2015 ........................................................ 3.75:1.00 4.00:1.00
December 31, 2015 ........................................................ 3.75:1.00 4.00:1.00
Failure to meet these covenant levels would result in a default under our senior credit facility. As of
December 31, 2010, we were in compliance with these covenants.
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