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58 COGECO CABLE INC. 2007 Notes to Consolidated Financial Statements
9) GOODWILL AND OTHER INTANGIBLE ASSETS (continued)
On March 9, 2007, the Corporation and Cable Satisfaction International Inc. came to an agreement for a fi nal adjustment
to the working capital that was outstanding since the date of acquisition. According to the agreement, the fi nal purchase
price was reduced by an amount of ¤2,194,000 ($3,371,000). Also, during 2007, the purchase price allocation related to
the 2006 acquisition of Cabovisão was adjusted to refl ect fi nal valuations of tangible and intangible assets acquired and
liabilities assumed on acquisition. The impact of these adjustments reduced goodwill by $87,020,000 (see note 2).
At August 31, 2007, the Corporation tested the value of goodwill for impairment and concluded that no impairment existed.
10) BANK INDEBTEDNESS
The Corporation has a swingline facility available for an amount of $25,000,000, none of which was used at August 31,
2007 and 2006. This facility requires commitment fees and bears interest at bank prime rate (bank prime rate plus 0.375%
in 2006). At August 31, 2007, the interest rate on bank indebtedness is 6.25% (6.375% in 2006). This facility, which matures
on July 28, 2011, is secured on the same basis and is subject to the same restrictions as the Term Facility (note 11 a)).
11) LONG-TERM DEBT
INTEREST
MATURITY RATE 2007 2006
(amounts are in thousands of dollars) % $ $
PARENT COMPANY
TERM FACILITY
TERM LOAN—¤104,551,500 ($150,000,000 IN 2006) 2011 5.44(1) 150,450 150,000
TERM LOAN—¤17,358,700 2011 5.25(1) 24,979 24,573
REVOLVING LOAN—¤196,725,000 (¤317,000,000 IN 2006) 2011 5.02(1) 283,087 448,745
SENIOR SECURED DEBENTURES SERIES 1 2009 6.75 150,000 150,000
SENIOR—SECURED NOTES
SERIES A—US$150 MILLION 2008 6.83 158,430 165,795
SERIES B 2011 7.73 175,000 175,000
DEFERRED CREDIT 2008 — 80,220 72,855
SECOND SECURED DEBENTURES SERIES A 2007 8.44 — 125,000
SUBSIDIARIES
OBLIGATIONS UNDER CAPITAL LEASES 2011 6.42 – 8.30 5,760 5,009
1,027,926 1,316,977
LESS CURRENT PORTION 17,292 126,851
1,010,634 1,190,126
(1) AVERAGE INTEREST RATE ON DEBT AS AT AUGUST 31, 2007, INCLUDING STAMPING FEES.
Interest on long-term debt amounted to $80,066,000 ($55,240,000 in 2006).