Cogeco 2009 Annual Report Download - page 69

68 COGECO CABLE INC. 2009 Consolidated financial statements
14. LONG-TERM DEBT
INTEREST
MATURITY
RATE 2009 2008
(in thousands of dollars) % $ $
PARENT COMPANY
TERM FACILITY a)
TERM LOAN—€78,413,625 (€94,096,350 IN 2008)
2011
1.25
(1)(2)
122,674 145,832
TERM LOAN—€17,358,700
2011
1.25
(1)(2)
27,142 26,881
REVOLVING LOAN—€40,000,000 (€126,000,000 IN 2008)
2011
1.31
(1)
62,792 196,308
REVOLVING LOAN 2011 – – 94,375
SENIOR SECURED NOTES SERIES B b)
2011
7.73 174,530 174,338
SENIOR SECURED NOTES c)
SERIES A – US$190 MILLION 2015 7.00 206,606 –
SERIES B 2018 7.60 54,576 –
SENIOR SECURED DEBENTURES SERIES 1 d) 2014 5.95 296,860 –
SENIOR UNSECURED DEBENTURE e) 2018 5.94 99,786 99,768
SENIOR SECURED NOTES SERIES A – US$150 MILLION b) 2
008
– – 159,233
SENIOR SECURED DEBENTURES SERIES 1 f)
2009
– – 149,814
SUBSIDIARIES
OBLIGATIONS UNDER CAPITAL LEASES
2013
6.47 – 9.93 9,496 8,492
1,054,462 1,055,041
LESS CURRENT PORTION 44,674 336,807
1,009,788 718,234
(1) INTEREST RATE ON DEBT AS AUGUST 31, 2009, INCLUDING STAMPING FEES.
(2) ON JANUARY 21, 2009, THE CORPORATION ENTERED INTO A SWAP AGREEMENT WITH A FINANCIAL INSTITUTION TO FIX THE FLOATING BENCHMARK INTEREST RATE
WITH RESPECT TO THE EURO-DENOMINATED TERM LOAN FACILITIES FOR A NOTIONAL AMOUNT OF €111.5 MILLION. THE INTEREST SWAP RATE TO HEDGE THE TERM
LOANS HAS BEEN FIXED AT 2.08% UNTIL THEIR MATURITY OF JULY 28, 2011. THE NOTIONAL VALUE OF THE SWAP WILL DECREASE IN LINE WITH THE AMORTIZATION
SCHEDULE OF THE TERM LOANS. IN ADDITION TO THE INTEREST SWAP RATE OF 2.08%, THE CORPORATION WILL CONTINUE TO PAY THE APPLICABLE MARGIN ON
THESE TERM LOANS IN ACCORDANCE WITH THE TERM FACILITY.
a) On July 28, 2009, the Corporation repaid €15.7 million of the term loan, representing 15% of the amount drawn, on the third
tranche of its $900 million Term Facility, which was reduced to $862.5 million reflecting the 2008 and 2009 repayments. The
Corporation benefits from an $862.5 million 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 million available in Canadian, US or Euro currencies; a second tranche, a swingline of $25 million available in Canadian
or US currencies; a third tranche of a remaining amount of $112.5 million, 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 million subject to reductions as mentioned below.
On August 22, 2007, the third tranche of the Term Facility of $150 million 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 million 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; €15,682,725 of which was repaid on July 28, 2009 in addition to a repayment of
€10,455,150 on July 28, 2008; the remainder of which is repayable as follows: €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 indirectly secured by a first priority fixed and floating charge on substantially all present and future real and
personal property and undertaking of every nature and kind 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. At August 31, 2009 and 2008, the Corporation was in compliance with all of its covenants.