Q2 Financial Report - 2014

Convertible Debentures
Debentures (2009)
In 2009 the Company issued $115 million aggregate principal amount of convertible unsecured
subordinated debentures (the "2009 Debentures") at a price of $1,000 per 2009 Debenture. On and
after December 31, 2013, at the option of the Company, the 2009 Debentures could be redeemed
at a price equal to their principal amount plus accrued and unpaid interest. In December 2013 the
Company announced its intention to redeem the 2009 Debentures effective January 20, 2014. In
January 2014, holders of $19.0 million principal amount of the 2009 Debentures exercised the
conversion option and were issued 422,897 common shares. The Company redeemed all remaining
outstanding 2009 Debentures on January 20, 2014. The 2009 Debentures traded on the Toronto
Stock Exchange (“TSX”) under the symbol AFN.DB.
Debentures (2013)
In December 2013 the Company issued $86.2 million aggregate principal amount of convertible
unsecured subordinated debentures (the "2013 Debentures") at a price of $1,000 per 2013
Debenture. The 2013 Debentures bear interest at an annual rate of 5.25% payable semi-annually on
June 30 and December 31 with the first payment due on June 30, 2014. Each 2013 Debenture is
convertible into common shares of the Company at the option of the holder at a conversion price
of $55.00 per common share. The maturity date of the 2013 Debentures is December 31, 2018.
On and after December 31, 2016 and prior to December 31, 2017, the 2013 Debentures may be
redeemed, in whole or in part, at the option of the Company at a price equal to their principal
amount plus accrued and unpaid interest, provided that the volume weighted average trading price
of the common shares during the 20 consecutive trading days ending on the fifth trading day
preceding the date on which the notice of redemption is given is not less than 125% of the
conversion price. On and after December 31, 2017, the 2013 Debentures may be redeemed, in
whole or in part, at the option of the Company at a price equal to their principal amount plus accrued
and unpaid interest.
On redemption or at maturity, the Company may, at its option, subject to regulatory approval and
provided that no event of default has occurred, elect to satisfy its obligation to pay the principal
amount of the 2013 Debentures, in whole or in part, by issuing and delivering for each $100 due
that number of freely tradeable common shares obtained by dividing $100 by 95% of the volume
weighted average trading price of the common shares on the TSX for the 20 consecutive trading
days ending on the fifth trading day preceding the date fixed for redemption or the maturity date,
as the case may be. Any accrued and unpaid interest thereon will be paid in cash. The Company
may also elect, subject to any required regulatory approval and provided that no event of default
has occurred, to satisfy all or part of its obligation to pay interest on the 2013 Debentures by
delivering sufficient freely tradeable common shares to satisfy its interest obligation.
The 2013 Debentures trade on the TSX under the symbol AFN.DB.A.
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