Cogeco 2014 Annual Report Download - page 25

24 COGECO CABLE INC. 2014 MD&A
• on May 27, 2013, of $300 million Senior Secured Debentures Series “4” (the “Debentures”) for net proceeds of $296.9 million, net of
transaction costs of $3.1 million;
• on April 23, 2013, a private placement of $410.4 million (US$400 million) Senior Unsecured Notes (the “2020 Notes”) for net proceeds
of $402.5 million, net of transaction costs of $7.9 million;
• on January 31, 2013, draw-downs of $640.3 million (net of transaction costs of $2.8 million) under new credit facilities amounting to
approximately $650 million to finance the acquisition of Peer 1 Hosting; and
• on November 30, 2012, a draw-down on the existing Term Revolving Facility of $584.2 million (US$588 million) and the new Term Loan
Facilities of $637.4 million (US$660 million for net proceeds of US$641.5 million, net of transaction costs of US$18.5 million) to finance
the acquisition of Atlantic Broadband.
• All of the above were partly offset by the following repayments: Cogeco Cable used most of the net proceeds under the Senior Secured
Notes, the Debentures, the 2020 Notes and drawings of $219.6 million under the Term Revolving Facility to repay the Senior Secured
Debentures Series 1 of $300 million, Canadian Term Facility amounting to $175 million, the US Term Facility amounting to $230.8
million (US$225 million), the $114.7 million Revolving loan in connection with the financing of the acquisition of Peer 1 Hosting and a
portion of the Term Revolving Facility used to finance Atlantic Broadband acquisition in the amount of $367.3 million.
In fiscal 2014, quarterly eligible dividends of $0.30 per share, totaling $1.20 per share were paid to the holders of subordinate and multiple voting
shares, for a total paid of $58.5 million. In fiscal 2013, quarterly eligible dividends of $0.26 per share, totaling $1.04 per share were paid to the
holders of subordinate and multiple voting shares, for a total paid of $50.6 million. Overall, during the last five years, total dividend per share
increased by 16.5% as a compounded annual basis.
The total dividend per share trend over the last five years is as follow:
FINANCIAL POSITION
During the year ended August 31, 2014, the following balances have changed significantly: "cash and cash equivalents", "property, plant and
equipment", "goodwill", "trade and other payables", "income tax liabilities","long-term debt" and "deferred tax liabilities".
Cash and cash equivalents increased by $24.3 million mainly as a result of the increase of $52.4 million in trade and other payables related to
the timing of payments made to suppliers. Property, plant and equipment decreased by $23.2 million due to the impairment of property, plant and
equipment of $35.5 million as well as depreciation expense exceeding the acquisitions, taking into account the impact of the US dollar and British
Pound currency appreciation against the Canadian dollar. Goodwill increased by $31.3 million as a result of the US dollar and the British Pound
currency appreciation against the Canadian dollar during fiscal 2014. The income tax liabilities increase of $23.6 million is due to the excess of
current income taxes over income taxes paid. The decrease of $190.9 million in long-term debt is due to the factors previously discussed in the
"Cash flow analysis" section, partly offset by the appreciation of the US dollar and British Pound currency compared to the Canadian dollar. The
decrease of $37.2 million in deferred tax liabilities results mainly from the implementation of certain federal tax measures in fiscal 2011 limiting
the tax deferrals for corporations with significant interest in partnership over a period of five years as well as the impairment of property, plant
and equipment which occurred in the third and fourth quarter of fiscal 2014.