2016 Annual Report For Web 7.3MB

23. LONG-TERM DEBT
CURRENT PORTION OF LONG-TERM DEBT
INTEREST
RATE
%
MATURITY DECEMBER 31,
2016
$
DECEMBER 31,
2015
$
Series A secured notes [U.S. dollar denominated] 6.8 2016 — 34,600
TOTAL CURRENT LONG-TERM DEBT — 34,600
NON-CURRENT PORTION OF LONG-TERM DEBT
Series B secured notes 4.4 2025 25,000 25,000
Series C secured notes [U.S. dollar denominated] 3.7 2026 33,568 —
Term A secured loan 3.2 2019 50,000 50,000
Term B secured loan 3.4 2022 40,000 40,000
Revolver line 3.0 2019 51,023 —
U.S. revolver line 4.5 2019 9,399 —
208,990 115,000
Less deferred financing costs 2,141 2,669
TOTAL NON-CURRENT LONG-TERM DEBT 206,849 112,331
LONG-TERM DEBT 206,849 146,931
[A] BANK INDEBTEDNESS
AGI has operating facilities of $20.0 million and U.S. $7.0 million. The
facilities bear interest at prime plus 0.2% to prime plus 1.8% per annum
based on performance calculations.
Collateral for the operating facilities ranks pari passu with the Series
A secured notes and includes a general security agreement over
all assets, first position collateral mortgages on land and buildings,
assignments of rents and leases and security agreements for patents
and trademarks.
[B] LONG-TERM DEBT
The Series A secured notes were issued on October 29, 2009. The nonamortizing
notes bear interest at 6.8% payable quarterly and mature
on October 29, 2016. The Series A secured notes are denominated
in U.S. dollars. Collateral for the Series A secured notes and term
loans ranks pari passu and include a general security agreement over
all assets, first position collateral mortgages on land and buildings,
assignments of rents and leases and security agreements for patents
and trademarks. Upon maturity in October 2016, the Series A secured
notes were refinanced with Series C secured notes from the same
lender. Terms of the Series C secured notes are the same as the Series
A secured notes other than the Series C secured notes bear interest at
3.7% and mature in October 2026.
The Series B secured notes were issued on May 22, 2015. The nonamortizing
notes bear interest at 4.4% payable quarterly and mature
on May 22, 2025. Collateral for the Series B secured notes and term
loans ranks pari passu and include a general security agreement over
all assets, first position collateral mortgages on land and buildings,
assignments of rents and leases and security agreements for patents
and trademarks.
The Term A secured loan was issued on May 20, 2015 and matures on
May 19, 2019. The facilities bear interest at BA plus 1.5% to BA plus
3.0% per annum based on performance calculations. Interest on the
non-amortizing loan has been fixed at 3.6% through an interest rate
swap contract [note 29]. Collateral for the Term A loan and secured
notes ranks pari passu and includes a general security agreement over
all assets, first position collateral mortgages on land and buildings,
assignments of rents and leases and security agreements for patents
and trademarks.
The Term B secured loan was issued on May 20, 2015 and matures on
May 19, 2022. The facilities bear interest at BA plus 2.5% per annum.
Interest on the non-amortizing loan has been fixed at 4.3% through
an interest rate swap contract [note 29]. Collateral for the Term B
loan and secured notes ranks pari passu and includes a general
security agreement over all assets, first position collateral mortgages
on land and buildings, assignments of rents and leases and security
agreements for patents and trademarks.
AGI has revolver facilities of $80 million and U.S. $68 million. The
facilities bear interest at LIBOR plus 1.5% to LIBOR plus 3.0% and
prime plus 0.2% to prime plus 1.8% per annum based on performance
calculations. As at December 31, 2016, there was $60 million [2015 – nil]
outstanding under these facilities. The facilities mature on May 19, 2019.
Interest on the revolver line has been fixed at 3.7% through an interest
rate swap contract [note 29]. Collateral for the revolving line ranks pari
passu and includes a general security agreement over all assets, first
position collateral mortgages on land and buildings, assignments of
rents and leases and security agreements for patents and trademarks.
[C] COVENANTS
AGI is subject to certain financial covenants in its credit facility
agreements that must be maintained to avoid acceleration of the
termination of the agreement. The financial covenants require AGI to
maintain a debt to earnings before interest, taxes, depreciation and
amortization [“EBITDA”] ratio of less than 3.25 and to provide debt
service coverage of a minimum of 1.0. The covenant calculations
exclude the convertible unsecured subordinated debentures from the
definition of debt. As at December 31, 2016 and December 31, 2015, AGI
was in compliance with all financial covenants.
125 CONSOLIDATED FINANCIAL STATEMENTS
FIELD TO CONSUMER
2016 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS 126