Cogeco 2003 Annual Report Download - page 34

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
32 Cogeco Cable Inc. 2003
6Deferred charges, net of amortization
7Customer base
At August 31, 2003 and 2002, the Corporation tested the value of customer base for impairment and concluded that no
impairment existed as at those dates.
8Bank indebtedness
The operating line of credit available to the Corporation amounts to $25,000,000, of which $1,115,000 was used at
August 31, 2003 ($659,000 in 2002). This line of credit is revised periodically, does not require commitment fees and bears
interest at bank prime rate plus 0.25%. At August 31, 2003, the interest rate on bank indebtedness is 5.00%. This line of
credit is secured on the same basis as the Term Facility (note 9a)).
9Long-term debt
Interest on long-term debt amounted to $56,320,000 ($54,355,000 in 2002).
a) The Term Facility which has a committed amount of $400,000,000 is repayable at any time without penalty but no later than
January 31, 2007, and will be reduced to $270,000,000 as at January 31, 2005, and $95,000,000 as at January 31, 2006. The
Term Facility requires commitment fees, and interest rates are based, at the Corporation’s option, on bankers’ acceptance or
bank prime rates.
2003 2002
New services launch costs $7,669 $14,263
Equipment subsidies and other costs 26,389 18,530
Financing costs 3,375 4,715
Other 1,714 1,040
$39,147 $38,548
2003 2002
Cost $1,040,333 $1,040,333
Accumulated amortization 50,781 50,781
$989,552 $989,552
Maturity Interest rate 2003 2002
Parent company
Term Facility 2007 4.48 %(1) $110,000 $129,000
Senior Secured Debentures Series 1 2009 6.75 150,000 150,000
Senior – Secured Notes
Series A – US $150 million 2008 6.83 207,855 233,820
Series B 2011 7.73 175,000 175,000
Second Secured Debentures Series A 2007 8.44 125,000 125,000
Subsidiaries
Obligations under capital leases 2007 6.58 – 9.53 1,565 2,109
Preferred shares (2) 2006 — 4,320 5,720
$773,740 $820,649
(1) Average interest rate as of August 31, 2003, including stamping fees.
(2) 4,320,000 preferred shares, 5.5% cumulative dividend, redeemable and retractable to a maximum of $1,400,000 annually.