Page 47 - 2008_2009_Annual_Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year ended March 31, 2009
045
9. Accounts Payable and Accrued Liabilities
SIGA is required to pay SLGA an amount equivalent to the imputed goods and services tax (“GST”) that is payable by
SLGA on gaming expenses incurred by SIGA related to its slot machine operations. Included in accounts payable and
accrued liabilities are amounts owing to SLGA for GST of $1,484,279 (2008 – $983,701). Also, $5,592,575 (2008
– $4,739,028) is due to SLGA for slot machine and operating system reimbursement is included in accounts payable
and accrued liabilities.
10. Long-term Debt
New casino projects financing
In 2007, SIGA entered into a long-term financing agreement with a financial institution (“Bank”) for $79 million to
finance all of its new casino projects. The Bank syndicated this financing with a secondary lender to provide SIGA with
$20 million. The Bank, as the lead lender, is providing SIGA with the remaining $59 million.
SIGA is drawing on the remaining approved financing to complete the construction of new casinos. During construction
of the new casinos, SIGA’s interim financing from the Bank is by way of either a prime rate advance or a bankers’
acceptance. During the construction phase of each project, SIGA pays interest only, on a monthly basis, based on the
outstanding balance. Upon completion of construction, outstanding amounts for each project are converted to long-term
loans. The final terms of the long-term loans are determined upon the completion of construction.
During the year, the Bank advanced an additional $11,913,357 related to the construction of the Living Sky Casino
and $11,015,559 related to construction of the Painted Hand Casino. These loans are referred to as Construction
Facility Tranche B and Construction Facility Tranche C respectively.
The long-term financing agreement is secured by a general security agreement and mortgage of leasehold interests of
SIGA’s casinos.
The long-term debt obligations are as follows:
2009
2008
Construction Facility Tranche B interest only payable
at prime (2.50% at March 31, 2009)
$ 15,106,887
$ 3,193,530
Construction Facility Tranche C interest only payable
at prime (2.50% at March 31, 2009)
11,015,559
Term Loan Tranche D – Fixed Rate repayable in
monthly installments of $165,355 including interest
at 5.68%, maturity April 2023
19,129,712
20,000,000
Term Loan Tranche D – Floating Rate repayable in
monthly installments of $116,667 plus interest at
bankers acceptance rate plus 1%, maturity April 2023
20,362,626
21,802,749
65,614,784
44,996,279
Less current portion
(28,587,226)
(2,270,288)
$ 37,027,558
$ 42,725,991