Cogeco 2014 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2014 Cogeco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

Consolidated financial statements COGECO CABLE INC. 2014 83
16. LONG-TERM DEBT
At August 31, Maturity Interest rate 2014 2013
(In thousands of Canadian dollars, except percentage) %$$
Parent Corporation
Term Revolving Facility a)
Canadian Revolving Facility
Revolving loan – US$70.5 million (US$206 million in 2013) January 2019 1.61 (1)(2) 76,654 216,918
Revolving loan January 2019 — —219,561
Revolving loan – £55.6 million January 2019 1.95 (1) 100,369 —
Secured Credit Facilities a)
Revolving Facility
Revolving loan – £52.2 million in 2013 — — —85,180
Revolving loan – US$21.9 million in 2013 — — —23,061
UK Revolving Facility – £3.4 million in 2013 — — —5,548
Senior Secured Notes b)
Series A – US$25 million September 2024 4.14 27,033 —
Series B - US$150 million September 2026 4.29 162,196 —
Senior Secured Notes c)
Series A – US$190 million October 2015 7.00 (3) 206,201 199,349
Series B October 2018 7.60 54,729 54,672
Senior Secured Notes - US$215 million d) June 2025 4.30 232,347 224,872
Senior Secured Debentures Series 2 e) November 2020 5.15 198,839 198,686
Senior Secured Debentures Series 3 f) February 2022 4.93 198,537 198,379
Senior Secured Debentures Series 4 g) May 2023 4.18 297,244 296,989
Senior Unsecured Debenture h) March 2018 5.94 99,864 99,829
Senior Unsecured Notes – US$400 million i) May 2020 4.88 428,370 413,674
Subsidiaries
First Lien Credit Facilities j)
Term Loan A Facility – US$166 million (US$190 million in 2013) November 2017 2.28 (1)(2) 177,150 195,193
Term Loan B Facility – US$377.65 million (US$416.85 million in 2013) November 2019 3.25 (1) 398,211 423,528
Revolving Facility – US$50 million (US$33 million in 2013) November 2017 2.28 (1) 54,365 34,749
Term Revolving Facility a)
UK Revolving Facility – £3.1 million January 2019 1.95 (1) 5,596 —
Finance leases January 2015 3.34 (4) 809 2,077
2,718,514 2,892,265
Less current portion 32,323 15,190
2,686,191 2,877,075
(1) Interest rate on debt includes applicable margin.
(2) At August 31, 2014 interest rate swap agreements have resulted in an effective interest rate of 1.85% on a notional amount of US$70.5 million of Term
Revolving Facility and of 2.52% on a notional amount of US$129.5 million of Term Loan A Facility, including applicable margin.
(3) Cross-currency swap agreements have resulted in an effective interest rate of 7.24% on the Canadian dollar equivalent of the US denominated debt.
(4) Weighted average interest rate on finance leases.
a) On November 22, 2013, the Corporation amended and restated its Term Revolving Facility of $800 million with a syndicate of lenders.
The maturity was extended until January 22, 2019 and can be further extended annually. The amendments also reduced the margin for
the calculation of the interest rate and reduced restrictions on certain covenants. The amended and restated Term Revolving Facility
also replaced Cogeco Cable’s Secured Credit Facilities maturing on January 27, 2017 which was fully repaid on November 22, 2013.
This amended and restated Term Revolving Facility is comprised of two tranches: a first tranche, a Canadian tranche, amounting to
$788 million and the second tranche, a UK tranche, amounting to $12 million. Both Cogeco Cable and Peer 1 (UK) Ltd. can borrow
under the UK tranche. The Canadian tranche is available in Canadian dollars, US dollars, Euros and British Pounds and interest rates
are based on banker's acceptance, US dollar base rate loans, LIBOR loans in US dollars, Euros or British Pounds, plus the applicable
margin. The UK tranche is available in British Pounds and interest rates are based on British Pounds base rate loans and British Pounds
LIBOR loans. The Term Revolving Facility is indirectly secured by first priority fixed and floating charges and a security interest on
substantially all present and future real and personal properties 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 this facility provide for restrictions on the operations and activities of the Corporation. Generally, the most significant restrictions