iesy Repository GmbH - Irish Stock Exchange

We anticipate that we will be highly leveraged in the foreseeable future. Our high level of debt may have important
negative consequences for you. For more information, see “Risk Factors—Risks Relating to Our Indebtedness and Our
Structure—Our high leverage and debt service obligations could materially adversely affect our business, financial condition
or results of operations.”
In addition, additional indebtedness incurred or the use of available cash on hand to finance acquisitions (including the
ish Acquisition) could reduce the amount of our cash flow available to make payments on the Notes and increase our
leverage. See “The ish Acquisition” and “Risk Factors—Risks Relating to Our Indebtedness and Our Structure.”
Senior Credit Facilities
The Senior Credit Facilities require us to comply with certain covenants, including certain financial ratios. For a
description of the Senior Credit Facilities, see the description included in “Description of Other Indebtedness.”
Aggregate Financial Obligations
The following table summarizes the financial payments that iesy will be obligated to make under its debt instruments as
of December 31, 2004.
The information presented in the table below reflects management’s estimates of the contractual maturities of iesy’s
obligations. These maturities may differ significantly from the actual maturity of these obligations. In particular, debt under
the Senior Credit Facilities may be retired earlier due to mandatory prepayments, such as from excess cash flow. This table
does not reflect additional long-term debt obligations, which we will incur in connection with the Financing and the ish
Acquisition.
102
Payments due by period (1)
(€’000s)
Less than
1 Year 1-3 years 4-5 years
Office rental 1,850 3,101 2,709
Other rental 947 1,127 0
Network infrastructure 21,261 43,692 45,409
MSG and Copyright fees 6,408 6,413 1,526
Other contractual obligations 213 0 0
Subtotal 30,679 54,333 49,643
Long-term debt obligations 2,000 3,940 3,862
Total 32,679 58,273 53,505
(1) We have not included iesy’s obligations beyond five years, including with respect to network infrastructure, the Senior
Credit Facilities and the Existing Notes.
Leasing and rental obligations. iesy has entered into the long term SLAs with DTAG and its affiliates. These include
usage and access agreements for underground cable ducts space, the use of fiber optic transmission systems, tower and
facility space. In general, these agreements primarily impose fixed prices for a limited period of time, which may then be
raised to reflect increased costs, subject to index-linked limitations. Some agreements impose prices based on the cost to
DTAG of services that are passed through to iesy. iesy has the ability to terminate these agreements with notice periods of
between 12 and 24 months. Furthermore, iesy has entered into the long term BRN-iesy agreement under which iesy leases
additional fiber optic lines. See “Business—Business of iesy—Supply—SLAs with DTAG.” iesy has also entered into
various other license, rental and operating lease agreements, all of which are expensed as services are provided. iesy treats
these leases as operating rather than capital leases. See “Risk Factors—Risks Relating to Our Indebtedness and Our
Structure—Our high leverage and debt service obligations could materially adversely affect our business, financial condition
or results of operations” and “—Risks Relating to the Notes, the Subsidiary Guarantees and the Security—We have not
included IFRS or U.S. GAAP financial information in this Prospectus, and there may be certain significant differences
between our financial position and results of operations under German GAAP, IFRS or U.S. GAAP.”
Copyright agreements. iesy is required under German law to pay royalties to the holders of copyrights and related
rights for the re-transmission of radio and television programs that include, among other things, literary, scientific or artistic
works protected by copyright law. iesy pays these fees pursuant to a collective agreement (Kabelglobalvertrag) between
members of the cable television industry and GEMA, representing collecting societies, public broadcasters, and a few private