Cable Technology Feature Article
Cogeco Cable Inc. Renews Its $750 Million Credit Facility on a
By Carolyn J Dawson, TMCnet Contributor
Cogeco Cable Inc. recently made an announcement on the renewal of its credit agreement for a $750 million credit facility. This, it has got with the facility of going up to a total of $1 billion. This will of course be based on lenders' participation and is on a five-year term revolving facility basis.
The renewed Term Revolving Facility has been organized by a set of financial companies which are being led by Canadian Imperial Bank of Commerce and Bank of Montreal. This facility will reach maturity on November 22, 2016 with the provision of being extended for one-year periods on a yearly basis. This will be completely dependent on approvals from lenders. The term revolving facility enjoys indirect security on first priority basis of fixed and floating charge. This is based on all present and incumbent, real as well as personal property. It also includes any undertaking irrespective of the nature of its origin and every corporation and also its subsidiaries. There are specific encumbrances that are allowed and this includes obligations of purchased money, current funded obligations and charges that are granted by any subsidiary before it became a subsidiary. There is also a ceiling on maximum amount applicable.
In a release, Louis Audet, President and CEO of Cogeco Cable, said, "The fact that Cogeco Cable renewed this facility for a five-year period highlights the banking syndicate's support for our strategy, and demonstrates our sound financial position."
This renewal of Term Revolving Facility covers all of Cogeco Cable's borrowing flexibility. It gives the company an extension of its current liquidity and that too in the limits of a strong capital structure. This facility is going to be utilized for general corporate based needs and will be made use of to promote growth opportunities.
Cogeco Cable is a telecommunications corporation. It has the distinction of being the second largest hybrid fiber coaxial cable operator based in Ontario, Quebec as well as Portugal.
Residential clients are provider Digital Television with Audio and Analogue through their two-way broadband cable networks. Additional services that are provided are HSI and. Cogeco Cable also works with commercial customers via its subsidiary Cogeco Data Services and provides solutions for data networking and e-business applications. They also provide video conferencing and hosting services, Ethernet as well as private line, VoIP, HSI access.
Carolyn John is a Contributor to TMCnet. To read more of her articles, please columnist page.
Edited by Rich Steeves