Virgin Media 2011 Annual Report Download - page 74

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, 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
Failure to meet these covenant levels would result in a default under our senior credit facility. As of
December 31, 2011, we were in compliance with these covenants.
Restrictions
Our senior credit facility significantly, and in some cases absolutely, restricts the ability of the members of
the bank group to, among other things:
• incur or guarantee additional indebtedness;
• pay dividends or make other distributions, or redeem or repurchase equity interests or subordinated
obligations;
• make investments;
• sell assets, including the capital stock of subsidiaries;
• create liens;
• enter into agreements that restrict the bank group’s ability to pay dividends or make inter-company
loans;
• merge or consolidate or transfer all or substantially all of their assets; and
• enter into transactions with affiliates.
We are also subject to financial maintenance covenants under our senior credit facility. The senior credit
facility also contains certain carve-outs from these limitations.
73