Cogeco 2010 Annual Report Download - page 63

62 COGECO CABLE INC. 2010 Consolidated Financial Statements
c) The Senior Secured Notes Series B 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 Senior Secured Notes Series B mature on October 31, 2011 and have an interest coupon rate of 7.73%
per annum, payable semi-annually.
d) 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.
e) 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.
f) 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.
g) Principal repayments due on long-term debt for the next five years, excluding those under capital leases, are as follows:
2011 2012 2013 2014 2015 Thereafte
r
(in thousands of dollars) $ $ $ $$$
– 175,000 – 421,635 – 357,635
h) Minimum payments due under capital leases total $5,948,000 of which $519,000 represents financial expense, and are as follows:
2011 2012 2013 2014
(in thousands of dollars) $ $ $ $
2,883 2,183 847 35
14. Capital stock
Authorized
Unlimited number of:
Class A Preference shares, without voting rights, redeemable by the Corporation and retractable at the option of the holder at any time at a
price of $1 per share, carrying a cumulative preferential cash dividend at a rate of 11% of the redemption price per year.
Class B Preference shares, without voting rights, could be issued in series.
Multiple voting shares, 10 votes per share.
Subordinate voting shares, 1 vote per share.