Cogeco 2004 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2004 Cogeco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
38 Cogeco Cable Inc. 2004
6CUSTOMER BASE
(amounts are in thousands of dollars) 2004 2003
$$
Cost 1,040,333 1,040,333
Accumulated amortization 50,781 50,781
989,552 989,552
At August 31, 2004 and 2003, the Corporation tested the value of customer base for impairment and concluded that no impairment existed.
7BANK INDEBTEDNESS
The operating line of credit available to the Corporation amounts to $25,000,000, of which $4,610,000 was used at August 31, 2004
($1,115,000 in 2003). This line of credit is revised periodically, does not require commitment fees and bear interest at bank prime rate plus
0.25%. At August 31, 2004, the interest rate on bank indebtedness is 4.00% (5.00% in 2003). This line of credit is secured on the same basis
as the Term Facility (note 8a)).
8LONG-TERM DEBT
(amounts are in thousands of dollars, except percentages) Maturity Interest rate 2004 2003
%$$
Parent company
Term Facility 2007 3.24
(1)
58,000 110,000
Senior Secured Debentures Series 1 2009 6.75 150,000 150,000
Senior – Secured Notes
Series A – US $150 million 2008 6.83 196,950 207,855
Series B 2011 7.73 175,000 175,000
Second Secured Debentures Series A 2007 8.44 125,000 125,000
Deferred credit 2008 — 41,700 30,795
Subsidiaries
Obligations under capital leases 2008 5.87-9.11 3,153 1,565
Preferred shares
(2)
2006 — 2,920 4,320
752,723 804,535
Less current portion 2,455 2,065
750,268 802,470
(1)
Average interest rate on debt as of August 31, 2004, including stamping fees.
(2)
2,920,000 preferred shares (4,320,000 in 2003), 5.5% cumulative dividend, redeemable and retractable to a maximum of $1,400,000 annually.
Interest on long-term debt amounted to $54,408,000 ($56,320,000 in 2003).