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52 COGECO CABLE INC. 2006 Notes to Consolidated Financial Statements
Interest on long-term debt amounted to $55,240,000 ($52,868,000 in 2005).
a) On July 28, 2006, the Term Facility and the operating line of credit of the Corporation were restructured by an amended
and restated credit agreement for credit facilities totalling $900,000,000. The Term Facility is composed of four tranches:
a fi rst tranche, a revolving loan for an amount of $700,000,000 available in Canadian, U.S. or Euro currencies; a second
tranche, a swingline of $25,000,000 available in Canadian or U.S. currencies; a third tranche of $150,000,000 fully drawn,
and a fourth tranche of €17,358,700 fully drawn. The Term Facility is repayable on July 28, 2011, except for the third
tranche of $150,000,000 which is repayable as follows: $15,000,000 on July 28, 2008, $22,500,000 on July 28, 2009,
$37,500,000 on July 28, 2010 and the balance on July 28, 2011. Earlier repayments can be made without penalty. The
Term Facility requires commitment fees, and interest rates are based on bankers’ acceptance, LIBOR, EURIBOR, bank prime
rate loan or U.S. base rate loan plus stamping fees. The Term Facility is secured by a fi rst fi xed and fl oating charge on the
assets of the Corporation and certain of its subsidiaries except for permitted encumbrances, including purchased money
obligations, existing funded obligations and charges granted by any subsidiary prior to the date when it becomes a
subsidiary subject to a maximum amount. The provisions under these facilities provide for restrictions on the operations
and activities of the Corporation. Generally, the most signifi cant restrictions relate to permitted investments, dividends on
multiple and subordinate voting shares and reimbursement of long-term debt as well as incurrence and maintenance of
certain fi nancial ratios primarily linked to the operating income before amortization, fi nancial expense and total indebtedness.
b) The Senior Secured Debentures Series 1 are redeemable at the Corporation’s option, in whole or in part, at the greater of
par value or the Canada bond yield plus 0.3%. These debentures mature on June 4, 2009 and bear interest at 6.75% per
annum, payable semi-annually. These debentures are indirectly secured by a fi rst fi xed and fl oating charge and a security
interest on all assets of the Corporation and certain of its subsidiaries.
10. LONG-TERM DEBT
(amounts are in thousands of dollars) MATURITY INTEREST RATE 2006 2005
% $ $
PARENT COMPANY
TERM FACILITY
TERM LOAN 2011 5.71
(1) 150,000 —)
TERM LOAN – €17,358,700 2011 4.50
(1) 24,573 —)
REVOLVING LOAN – €317,000,000 2011 4.50
(1) 448,745 —)
SENIOR SECURED DEBENTURES SERIES 1 2009 6.75 150,000 150,000
SENIOR – SECURED NOTES
SERIES A – US $150 MILLION 2008 6.83 165,795 178,065
SERIES B 2011 7.73 175,000 175,000
SECOND SECURED DEBENTURES SERIES A 2007 8.44 125,000 125,000
DEFERRED CREDIT 2008 — 72,855 60,585
SUBSIDIARIES
OBLIGATIONS UNDER CAPITAL LEASES 2010 6.42 – 8.36 5,009 3,831
1,316,977 692,481
LESS CURRENT PORTION 126,851 1,322
1,190,126 691,159
(1) AVERAGE INTEREST RATE ON DEBT AS AT AUGUST 31, 2006, INCLUDING STAMPING FEES.