Page 50 - 2009_2010_Annual_Report

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Saskatchewan Indian Gaming Authority
NOTES TO THE FINANCIAL STATEMENTS
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Year Ended March 31, 2010
48
12. LONG-TERM DEBT (CONTINUED)
The long-term debt obligations are as follows:
2010
2009
Construction Facility Tranche B repayable in monthly instalments of $117,762
plus interest at bankers acceptance rate plus 1%, maturity August 2024.
$ 20,419,511
$ 15,106,887
Construction Facility Tranche C repayable in monthly instalments of $88,889
plus interest at bankers acceptance rate plus 1%, maturity August 2024.
15,537,835
11,015,559
Term Loan Tranche D – Fixed Rate repayable in monthly instalments of $165,355
including interest at 5.68%, maturity April 2023.
18,242,183
19,129,712
Term Loan Tranche D – Floating Rate repayable in monthly instalments of $116,667
plus interest at bankers acceptance rate plus 1%, maturity April 2023.
18,316,667
20,362,626
Term Loan Tranche A – Fixed Rate repayable in monthly instalments of $4,460
plus interest at 2.50%, maturity March 2019.
582,376
73,098,572
65,614,784
Less current portion
(5,497,985)
(28,587,226)
$ 67,600,587
$ 37,027,558
Principal repayments required for the above loans, based on maturity dates, are as follows:
2011
$ 5,497,985
2012
4,975,998
2013
5,039,908
2014
46,999,384
2015
10,585,297
Assuming these facilities are able to be renegotiated at similar terms, the principal payments required would be as follows:
2011
$ 5,497,985
2012
4,975,998
2013
5,039,908
2014
5,107,544
2015
5,179,123
2016 and subsequent
47,298,014
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 came into effect for the Living Sky and Painted Hand construction projects on April 1, 2009. A liability
of $5,492,969 has been recorded at March 31, 2010 (2009 – $10,359,791), 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, 2010, were $18,316,667 for Dakota Dunes, $17,766,594 for Living Sky, and $16,806,111 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, 2010, no amount is owing on the line of credit (2009 – $nil).