Page 48 - 2008_2009_Annual_Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year ended March 31, 2009
046
10. Long-term Debt (continued)
New casino projects financing (continued)
Principal repayments required for the above loans are as follows:
2010
$ 28,587,226
2011
2,535,363
2012
2,596,276
2013
2,668,504
2014
2,555,712
2015 and subsequent
26,671,703
Due to the uncertainty surrounding the terms that would currently be available for debt of similar terms and maturities,
fair value information has not been disclosed as fair value cannot be reliably measured.
In order to manage its interest rate risk exposure, SIGA entered into separate interest rate swap arrangements for the
Dakota Dunes, Living Sky and Painted Hand construction projects on December 12, 2007. These arrangements fixed
the interest rates for the loan for each construction project at 4.94%, 5.09% and 5.09% respectively over the term
of the loans. These loan terms are March 2023, March 2024, and March 2024 respectively. The interest rate swap
arrangements came into effect for the Dakota Dunes construction project on April 1, 2008 and will come into effect for
the Living Sky and Painted Hand construction projects on April 1, 2009. A liability of $10,359,791 has been recorded
at March 31, 2009 (2008 – $3,014,043), representing the fair value of the instruments. Changes to the fair value are
recorded as an unrealized gain or loss in the current period. The notional amount of the interest rate swaps at March
31, 2009, were $19,716,666 for Dakota Dunes, $18,923,000 for Living Sky, and $17,900,000 for Painted Hand.
SIGA has established an unsecured $2,000,000 line of credit with a financial institution. Interest is charged on the
line of credit at the financial institution’s prime rate plus 1%. At March 31, 2009, no amount is owing on the line of
credit (2008 – $nil).
11. Capital Lease Obligations
On December 23, 2004 SIGA entered into an agreement with STC Casino Holdings Limited Partnership, a related
party, for lease of Dakota Dunes Casino on Whitecap Dakota First Nation. Beginning in April 2007, SIGA leased the
property from that Partnership for approximately 20 years at an annual cost of $2,248,477.
On October 26, 2005 SIGA entered into an agreement with PHC Holdings Limited Partnership, a related party for lease
of Painted Hand Casino in Yorkton. Beginning in February 2009, SIGA leased the property from that Partnership for
approximately 19 years at an annual cost to be determined once the obligation is finalized.
On January 26, 2006 SIGA entered into an agreement with FHQ Casino Holdings Limited Partnership, a related party,
for lease of Living Sky Casino in Swift Current. Beginning in December 2008, SIGA leased the property from the
Partnership for approximately 19 years at an annual cost of $2,195,200.