Cogeco 2009 Annual Report Download - page 70

Consolidated financial statements COGECO CABLE INC. 2009 69
b) The Senior Secured Notes are senior secured obligations and rank equally and rateably with all existing and future senior
indebtedness. These notes are indirectly secured by a first priority fixed and floating charge and a security interest 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. The notes are redeemable at the Corporation’s option at any time, in whole or in part, prior to
maturity, at 100% of the principal amount plus a make-whole premium. The Series A matured on October 31, 2008 and the
Series B mature on October 31, 2011. The Senior Secured Notes Series B have an interest coupon rate of 7.73% per annum,
payable semi-annually.
c) On October 1, 2008, the Corporation issued US$190 million Senior Secured Notes Series A maturing October 1, 2015, and
$55 million Senior Secured Notes Series B maturing October 1, 2018, net of transaction costs of $2.1 million, for net proceeds
of $255 million. The Senior Secured Notes Series B bear interest at the coupon rate of 7.60% per annum, payable semi-
annually. The Corporation has entered into cross-currency swap agreements to fix the liability for interest and principal
payments on the Senior Secured Notes Series A in the amount of US$190 million, which bear interest at the coupon rate of
7.00% per annum, payable semi-annually. Taking into account these agreements, the effective interest rate on the Senior
Secured Notes Series A is 7.24% and the exchange rate applicable to the principal portion of the US dollar-denominated debt
has been fixed at $1.0625. The Senior Secured Notes are senior secured obligations and rank equally and rateably with all
existing and future senior indebtedness. These notes are indirectly secured by a first priority fixed and floating charge and a
security interest 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. The notes are redeemable at the Corporation’s option at any time, in whole or in
part, prior to maturity, at 100% of the principal amount plus a make-whole premium.
d) On June 9, 2009, the Corporation completed, pursuant to a public debt offering, the issue of $300 million Senior Secured
Debentures Series 1, net of discounts and transactions costs of $3.3 million, for net proceeds of $296.7 million. 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 0.875%. These debentures mature on June 9, 2014 and bear interest at 5.95% per annum, payable
semi-annually. These debentures are indirectly secured by a first priority fixed and floating charge and a security interest 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.
e) On March 5, 2008, the Corporation issued a $100 million Senior Unsecured Debenture by way of a private placement, subject
to usual market conditions. The debenture bears interest at a fixed rate of 5.936% per annum, payable semi-annually. The
debenture matures on March 5, 2018 and is redeemable at the Corporation’s option at any time, in whole or in part, prior to
maturity, at 100% of the principal amount plus a make-whole premium.
f) The Senior Secured Debentures Series 1 were 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 matured on June 4, 2009 and were bearing interest at 6.75% per
annum, payable semi-annually. These debentures were indirectly secured by a first priority fixed and floating charge and a
security interest 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.
g) Principal repayments due on long-term debt for the next five years, excluding those under capital leases, are as follows:
2010 2011 2012 2013 2014 Thereafter
(in thousands of dollars) $ $ $ $ $ $
41,031 172,104 175,000
–
300,000 363,050
h) Minimum payments due under capital leases total $10,607,000, of which $1,111,000 represents financial expense, and are as
follows:
2010 2011 2012 2013
(in thousands of dollars) $ $ $ $
4,224 3,273 2,258 852