VIDEOTRON LTEE | CIK:0000890746 | 3

  • Filed: 3/27/2018
  • Entity registrant name: VIDEOTRON LTEE (CIK: 0000890746)
  • Generator: Merrill
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/890746/000110465918020432/0001104659-18-020432-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/890746/000110465918020432/vi-20171231.xml
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  • ifrs-full:DisclosureOfBorrowingsExplanatory

     

    20.    LONG-TERM DEBT

     

     

     

    Effective interest rate as of
    December 31, 2017

     

    2017

     

    2016

     

     

     

     

     

     

     

     

     

    Bank credit facilities (i)

     

    2.95

    %

    5,357

     

    225,521

     

    Senior Notes (ii) (note 7)

     

     

     

    3,289,200

     

    2,954,780

     

     

     

     

     

     

     

     

     

    Total long-term debt

     

     

     

    3,294,557

     

    3,180,301

     

     

     

     

     

     

     

     

     

    Change in fair value related to hedged interest rate risk

     

     

     

    5,789

     

    8,377

     

    Adjustments related to embedded derivatives

     

     

     

     

    (174

    )

    Financing fees, net of amortization

     

     

     

    (30,016

    )

    (25,396

    )

     

     

     

     

     

     

     

     

     

     

     

     

    (24,227

    )

    (17,193

    )

     

     

     

     

     

     

     

     

     

     

     

     

    3,270,330

     

    3,163,108

     

     

     

     

     

     

     

     

     

    Less current portion

     

     

     

    (5,357

    )

    (10,714

    )

     

     

     

     

     

     

     

     

     

     

     

     

    $

    3,264,973

     

    $

    3,152,394

     

     

     

     

     

     

     

     

     

     

     

     

     

    (i)The bank credit facilities provide for a $965.0 million secured revolving credit facility that matures in July 2021 and a $75.0 million secured export financing facility providing for a term loan that matures in June 2018. The revolving credit facility bears interest at Bankers’ acceptance rate, U.S. London Interbank Offered Rate (“LIBOR”), Canadian prime rate or U.S. prime rate, plus a margin, depending on the Corporation’s leverage ratio. Advances under the export financing facility bear interest at Bankers’ acceptance rate plus a margin. The bank credit facilities are secured by a first ranking hypothec on the universality of all tangible and intangible assets, current and future, of the Corporation and most of its wholly owned subsidiaries. As of December 31, 2017, the bank credit facilities were secured by assets with a carrying value of $6,665.7 million ($5,804.3 million in 2016). The bank credit facilities contain covenants such as maintaining certain financial ratios, limitations on the Corporation’s ability to incur additional indebtedness, pay dividends, or make other distributions. As of December 31, 2017, no amount had been drawn on the secured revolving credit facility  ($209.4 million in 2016) and $5.4 million was outstanding on the export financing facility ($16.1 million in 2016).

     

    (ii)The Senior Notes are unsecured and contain certain restrictions on the Corporation, including limitations on its ability to incur additional indebtedness, pay dividends or make other distributions. Some Notes are redeemable at the option of the issuer, in whole or in part, at a price based on a make-whole formula during the first five years of the term of the Notes and at a decreasing premium thereafter, while the remaining Notes are redeemable at a price based on a make-whole formula at any time prior to their maturity. The Notes are guaranteed by specific subsidiaries of the Corporation. The following table summarizes terms of the outstanding Senior Notes as of December 31, 2017:

     

    Principal amount

     

    Annual nominal
    interest rate

     

    Effective interest rate
    (after discount at
    issuance)

     

    Maturity date

     

    Interest payable
    every 6 months on

     

     

     

     

     

     

     

     

     

     

     

    US$

    800,000

     

    5.000

    %

    5.000

    %

    July 15, 2022

     

    January and July 15

     

    US$

    600,000

     

    5.375

    %

    5.375

    %

    June 15, 2024

     

    June and December 15

     

    $

    400,000

     

    5.625

    %

    5.625

    %

    June 15, 2025

     

    April and October 15

     

    $

    375,000

    1

    5.750

    %

    5.750

    %

    January 15, 2026

     

    March and September 15

     

    US$

    600,000

    2

    5.125

    %

    5.125

    %

    April 15, 2027

     

    April and October 15

     

     

     

    1

    The Notes were issued in September 2015 for net proceeds of $370.1 million, net of financing fees of $4.9 million.

    2

    The Notes were issued in April 2017 for net proceeds of $794.5 million, net of financing fees of $9.9 million.

     

    On December 31, 2017, the Corporation and its subsidiaries were in compliance with all debt covenants.

     

    Principal repayments of long-term debt over the coming years are as follows:

     

    2018

     

    $

    5,357

     

    2019

     

     

    2020

     

     

    2021

     

     

    2022

     

    1,005,680

     

    2023 and thereafter

     

    2,283,520