Cogeco 2015 Annual Report Download - page 86

Consolidated financial statements COGECO CABLE INC. 2015 85
16. LONG-TERM DEBT
At August 31, Maturity Interest rate 2015 2014
(In thousands of Canadian dollars, except percentages) %$$
Parent Corporation
Term Revolving Facility a)
Canadian Revolving Facility
Revolving loan – US$70.5 million January 2020 1.65 (1) 92,757 76,654
Revolving loan – £54.0 million (£55.6 million in 2014) January 2020 1.96 (1) 109,021 100,369
Senior Secured Notes b)
Series A – US$25 million September 2024 4.14 32,755 27,033
Series B - US$150 million September 2026 4.29 196,515 162,196
Senior Secured Notes c)
Series A – US$190 million October 2015 7.00 (2) 249,953 206,201
Series B October 2018 7.60 54,789 54,729
Senior Secured Notes - US$215 million d) June 2025 4.30 281,559 232,347
Senior Secured Debentures Series 2 e) November 2020 5.15 199,002 198,839
Senior Secured Debentures Series 3 f) February 2022 4.93 198,703 198,537
Senior Secured Debentures Series 4 g) May 2023 4.18 297,510 297,244
Senior Unsecured Debenture h) March 2018 5.94 99,901 99,864
Senior Unsecured Notes – US$400 million i) May 2020 4.88 520,759 428,370
Subsidiaries
First Lien Credit Facilities j)
Term Loan A Facility – US$145 million (US$166 million in 2014) November 2017 2.14 (1)(3) 188,224 177,150
Term Loan A-2 Facility – US$100 million September 2019 2.08 (1)(3) 129,391 —
Term Loan B Facility – US$369.4 million (US$377.7 million in 2014) November 2019 3.25 (1) 473,653 398,211
Revolving Facility – US$111 million (US$50 million in 2014) November 2017 2.08 (1) 146,043 54,365
Term Revolving Facility a)
UK Revolving Facility – £4.7 million (£3.1 million in 2014) January 2020 1.95 (1) 9,489 5,596
Finance leases —809
3,280,024 2,718,514
Less current portion 297,629 32,323
2,982,395 2,686,191
(1) Interest rate on debt includes applicable margin.
(2) Cross-currency swap agreements have resulted in an effective interest rate of 7.24% on the Canadian dollar equivalent of the US denominated debt.
(3) On October 14, 2015, the Corporation has entered into two interest rate swap agreements to fix interest rate on a notional amount of US$150 million (US
$75 million each agreement) of its LIBOR based loans. These agreements have the effect of converting the floating US Libor base rate at a fixed rate of
0.6120% and 0.9870%, under Term Loan A and Term Loan A-2 Facilities, until October 30, 2017 and July 31, 2019, respectively.
a) On November 22, 2013, the Corporation amended and restated its Term Revolving Facility of $800 million with a syndicate of lenders.
On December 12, 2014, the facility was re-amended and the maturity was extended until January 22, 2020 and can be further extended
annually. The amendments reduced the margin for the calculation of the interest rate and reduced restrictions on certain covenants.
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 a 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
relate to permitted investments and dividends on multiple and subordinate voting shares, as well as incurrence and maintenance of
certain financial ratios primarily linked to EBITDA adjusted for integration, restructuring and acquisition costs and settlement of a claim
with a supplier ("adjusted EBITDA"), financial expense and total indebtedness.
b) On August 27, 2014, the Corporation completed, pursuant to a private placement, the issuance of US$25 million ($27.2 million) Senior
Secured Notes Series A net of transaction costs of $0.1 million, for net proceeds of $27.1 million and of US$150 million ($163.4 million)
Senior Secured Notes Series B net of transaction costs of $0.9 million, for net proceeds of $162.5 million. The Senior Secured Notes
Series A bear interest at 4.14% per annum payable semi-annually and mature on September 1, 2024, and the Senior Secured Notes
Series B bear interest at 4.29% per annum payable semi-annually and mature on September 1, 2026. The Senior Secured Notes Series
A and B are redeemable at any time at Cogeco Cable’s option, in whole or in part, at 100% of the principal amount plus a make-whole