Cogeco 2008 Annual Report Download - page 60

Notes to the Consolidated Financial Statements COGECO CABLE INC. 2008 59
12. LONG-TERM DEBT
INTEREST
MATURITY RATE 2008 2007
(in thousands of dollars) % $ $
PARENT COMPANY
TERM FACILITY
TERM LOAN—€94,096,350 (€104,551,500 IN 2007) 2011 5.31(1) 145,832 150,450
TERM LOAN—€17,358,700 2011 5.25(1) 26,881 24,979
REVOLVING LOAN—€126,000,000 (€196,725,000 IN 2007) 2011 5.25(1) 196,308 283,087
REVOLVING LOAN 2011 3.99(1) 94,375 –
SENIOR SECURED DEBENTURES SERIES 1 2009 6.75 149,814 150,000
SENIOR SECURED NOTES
SERIES A – US$150 MILLION 2008 6.83 159,233 158,430
SERIES B 2011 7.73 174,338 175,000
SENIOR UNSECURED DEBENTURE 2018 5.94 99,768 –
DEFERRED CREDIT 2008 – –80,220
SUBSIDIARIES
OBLIGATIONS UNDER CAPITAL LEASES 2013 6.42–8.30 8,492 5,760
1,055,041 1,027,926
LESS CURRENT PORTION 336,807 17,292
718,234 1,010,634
(1) AVERAGE INTEREST RATE ON DEBT AS AT AUGUST 31, 2008, INCLUDING STAMPING FEES.
a) On July 28, 2008, the Corporation repaid €10.5 million, representing 10% of the amount drawn, on the third tranche of its
$900,000,000 Term Facility, which was reduced to $885,000,000 accordingly. The Corporation benefits from an $885,000,000
credit facility in the form of a Term Facility and an operating line of credit with a group of financial institutions. The Term Facility
is composed of four tranches: a first tranche, a revolving loan for an amount of $700,000,000 available in Canadian, US or
Euro currencies; a second tranche, a swingline of $25,000,000 available in Canadian or US currencies; a third tranche of
$150,000,000, fully drawn, available in Canadian currency, and a fourth tranche of €17,358,700 fully drawn. On August 14,
2007, the Term Facility was amended to permit EURIBOR loans under the third tranche in an amount not exceeding the
equivalent of $150,000,000 subject to reductions as mentioned below. On August 22, 2007, the third tranche of the Term
Facility of $150,000,000 was drawn in Euros. The amount drawn in Euros of €104,551,500 was established at the prevailing
exchange rate at that date. In accordance with the amended credit agreement, the amount available under the first tranche of
$700,000,000 can be temporarily reduced in the event of an increase in the exchange rate affecting the amount drawn under
the third or fourth tranches. The Term Facility is repayable on July 28, 2011, except for the third tranche of €104,551,500;
€10,455,150 of which was repaid on July 28, 2008; the remainder of which is repayable as follows: €15,682,725 on
July 28, 2009, €26,137,875 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 US base rate loan plus stamping fees. The Term Facility is secured by a first fixed and floating charge
on the assets of the Corporation and certain of its subsidiaries, and provides for certain 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 significant restrictions relate to permitted investments and
dividends on multiple and subordinate voting shares, as well as incurrence and maintenance of certain financial ratios primarily
linked to the operating income before amortization, financial expense and total Indebtedness. As at August 31, 2008, the
Corporation was in compliance with all of its covenants.
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 first fixed and floating charge and a security interest on
all assets of the Corporation and certain of its subsidiaries.