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MD&A COGECO CABLE INC. 2015 29
7.2 OUTSTANDING SHARE DATA
A description of Cogeco Cable’s share data at September 30, 2015 is presented in the table below. Additional details are provided in Note 17 of
the consolidated financial statements.
(in thousands of dollars, except number of shares/options) Number of
shares/options Amount
$
Common shares
Multiple voting shares 15,691,100 98,346
Subordinate voting shares 33,537,209 918,270
Options to purchase subordinate voting shares
Outstanding options 700,053
Exercisable options 243,275
7.3 FINANCING
In connection with the acquisition of MetroCast Connecticut by Cogeco Cable's subsidiary, Atlantic Broadband, on August 20, 2015, the First Lien
Credit Facilities were amended on July 17, 2015 and such amendments became effective on the closing date of the acquisition. Pursuant to the
amendment, an incremental Term Loan A-2 Facility in an amount of US$100 million was issued for net proceeds of US$98.3 million ($128.6
million) net of transaction costs of US$1.7 million ($2.2 million). The Term Loan A-2 Facility matures on September 3, 2019 and is subject to a
quarterly fixed amortization schedule. In addition to the fixed amortization schedule, the Term Loan A-2 Facility is subject to a prepayment
percentage of excess cash flow generated during the prior fiscal year which may reduce the quarterly fixed amortization schedule, consistent
with that of the Term Loan A. Other terms and conditions related to financial covenants and interest rates remained the same.
On December 12, 2014, the Corporation amended its Term Revolving Facility. Under the term of the amendment, the maturity was extended by
an additional year and consequently, will mature on January 22, 2020.
At August 31, 2015, the Corporation had used $211.5 million of its $800.0 million amended and restated Term Revolving Facility for a remaining
availability of $588.5 million. In addition, two subsidiaries related to Atlantic Broadband also benefit from a Revolving Facility of $197.4 million
(US150 million), of which $148.3 million (US$112.7 million) was used at August 31, 2015 for a remaining availability of $49.0 million (US$37.3
million).
7.4 CREDIT RATINGS
The table below shows Cogeco Cable’s and Atlantic Broadband’s credit ratings:
At August 31, 2015 Moody's DBRS Fitch S&P
Cogeco Cable
Senior Secured Notes and Debentures NR BBB (low) BBB- BBB
Senior Unsecured Notes NR BB BB+ BB-
Atlantic Broadband
First Liens Credit Facilities Ba3 NR NR BB
NR : Not rated
A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the rating
organization.
On July 29, 2014, Dominion Bond Rating Service (“DBRS”) confirmed their ratings of "BBB (low)" on the Senior Secured Debentures and Notes,
of "BB" on the Senior Unsecured Notes and confirmed the "BB (high)" Issuer Rating. The “BBB (low)” rating is one notch above the Issuer rating
of “BB (high)” and reflects very high recovery prospects of first lien secured issues. Obligations rated in the “BBB” category are in the fourth
highest category and are regarded as of adequate credit quality. Obligations rated in the “BB” category are speculative, non-investment grade
credit quality.
On April 28, 2014, Standard & Poor’s Ratings Services (“S&P”) confirmed their ratings of “BBB” on the Senior Secured Debentures and Notes,
of "BB-" on the Senior Unsecured Notes and confirmed the “BB+” corporate credit rating. The “BBB” rating is two notches above the corporate
credit ratings of “BB+” and reflects very high recovery prospects of first lien secured issues. Obligations rated in the “BBB” category are in the
fourth highest category and are regarded as investment-grade. Such obligations show adequate protection parameters. The ratings may be
modified by the addition of a plus “(+)” or minus “(-)” sign to show relative standing within the major rating categories. Obligations rated in the
“BB” category are speculative, non-investment grade credit quality.
On April 13, 2015, Fitch Ratings (“Fitch”) has confirmed the “BB+” Issuer Default Rating ("IDR") and has also confirmed the rating of “BBB-” on
the Senior Secured Notes and of “BB+” on the Senior Unsecured Notes. Obligations rated in the “BBB” category are regarded as of good credit
quality. Obligations rated in the "BB" category are regarded as speculative.