Cogeco 2011 Annual Report Download - page 69

68 COGECO CABLE INC. 2011 Consolidated financial statements
d) On November 16, 2010 the Corporation completed pursuant to a public debt offering, the issue of $200 million Senior Secured
Debentures Series 2 for net proceeds of $198.3 million net of discounts and transaction costs. These debentures mature on November 16,
2020 and bear interest at 5.15% 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) The Senior Secured Notes Series B were senior secured obligations and rank equally and rateably with all existing and future senior
indebtedness. These notes 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.
The notes were 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 were to mature on October 31, 2011 and had an interest coupon rate of
7.73% per annum, payable semi-annually. On December 22, 2010, the Corporation redeemed the 7.73% Senior Secured Notes Series B
in the aggregate principal amount of $175 million. As a result, the aggregate redemption cash consideration that the Corporation paid
totalled $183.8 million excluding accrued interest. The excess of the redemption price over the aggregate principal amount was recorded
as financial expense during the second quarter of fiscal year 2011.
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 fiscal years, excluding those under capital leases, are as follows:
2012 2013 2014 2015 2016 Thereafte
r
(in thousands of dollars) $ $ $$$$
– – 410,000 – 186,086 355,000
h) Minimum payments due under capital leases total $3,129,000 of which $190,000 represents financial expense, and are as follows:
2012 2013 2014
(in thousands of dollars) $ $ $
2,251 871 7
13. 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, issuable in series.
Multiple voting shares, 10 votes per share.
Subordinate voting shares, 1 vote per share.
Issued
2011 2010
(in thousands of dollars, except number of shares) $ $
15,691,100 multiple voting shares 98,346 98,346
33,073,656 subordinate voting shares (32,885,337 in 2010) 898,327 892,332
996,673 990,678
103,728 subordinate voting shares held in trust under the Incentive Share Unit Plan (57,409 in 2010) (3,751) (1,848)
992,922 988,830