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VIRGIN MEDIA INC.
(See note 1)
Notes to Condensed Consolidated Financial Statements — (Continued)
June 30, 2014
(unaudited)
18
Guarantors) and are secured by liens on substantially all of the assets of Virgin Media Secured Finance and the VM Senior Secured
Guarantors (except for Virgin Media).
The 2025 VM Senior Secured Notes and 2029 VM Senior Secured Notes contain certain customary incurrence-based covenants.
For example, the ability to raise certain additional debt and make certain distributions or loans to other subsidiaries of Liberty
Global is subject to a Consolidated Leverage Ratio test, as defined in the applicable indenture. In addition, the 2025 VM Senior
Secured Notes and 2029 VM Senior Secured Notes provide that any failure to pay principal prior to expiration of any applicable
grace period, or any acceleration with respect to other indebtedness of £50.0 million or more in the aggregate of Virgin Media,
Virgin Media Finance PLC (Virgin Media Finance), a wholly-owned subsidiary of Virgin Media, Virgin Media Secured Finance
or VMIH (as applicable under the relevant indenture), or the Restricted Subsidiaries (as defined in the applicable indenture) is an
event of default under the 2025 VM Senior Secured Notes and 2029 VM Senior Secured Notes.
Subject to the circumstances described below, the 2025 VM Senior Secured Notes are non-callable until January 15, 2019
and the 2029 VM Senior Secured Notes are non-callable until January 15, 2021. At any time prior to January 15, 2019, in the case
of the 2025 VM Senior Secured Notes, or January 15, 2021, in the case of the 2029 VM Senior Secured Notes, Virgin Media
Secured Finance may redeem some or all of the 2025 VM Senior Secured Notes or the 2029 VM Senior Secured Notes (as
applicable) by paying a “make-whole” premium, which is the present value of all remaining scheduled interest payments to January
15, 2019 or January 15, 2021 (as applicable) using the discount rate (as specified in the applicable indenture) as of the redemption
date plus 50 basis points.
Virgin Media Secured Finance may redeem some or all of the 2025 VM Senior Secured Notes or the 2029 VM Senior Secured
Notes at the following redemption prices (expressed as a percentage of the principal amount) plus accrued and unpaid interest and
Additional Amounts (as defined in the applicable indenture), if any, to the applicable redemption date, if redeemed during the
twelve-month period commencing on January 15 of the years set forth below:
Redemption price
Year
2025 VM
Senior Secured
Notes
2029 VM
Senior Secured
Notes
2019.............................................................................................................................................. 102.750% N.A.
2020.............................................................................................................................................. 101.833% N.A.
2021.............................................................................................................................................. 100.000% 103.125%
2022.............................................................................................................................................. 100.000% 102.083%
2023.............................................................................................................................................. 100.000% 101.042%
2024 and thereafter ...................................................................................................................... 100.000% 100.000%