Page 52 - SIGA_2010-11 Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year Ended March 31, 2011
50
11. LONG-TERM DEBT (CONTINUED)
NEW CASINO PROJECTS FINANCING (CONTINUED)
Principal repayments required for the above loans, based on maturity dates, are as follows:
2012
$ 4,970,718
2013
5,087,836
2014
46,907,958
2015
11,253,510
Assuming these facilities are able to be renegotiated at similar terms, the principal payments required would be as follows:
2012
$ 4,970,718
2013
5,087,836
2014
5,155,146
2015
5,226,381
2016
5,301,769
2017 and subsequent
42,478,172
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 $5,147,896 has been recorded at March 31, 2011 (2010 – $5,492,969), 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, 2011, were $16,916,667 for Dakota Dunes, $16,505,061 for Living Sky, and
$15,612,778 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, 2011, no amount is owing on the line of credit (2010 – $nil).
12. CAPITAL LEASE OBLIGATION
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. In 2011, there was an addition to this capital lease, for approximately
16 years, at an annual cost of $380,969.
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 of $1,646,400.
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.