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54

11. LONG-TERM DEBT (CONTINUED)

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:

March 31, 2016

March 31, 2015

Term Loan Tranche D – Part A

repayable in monthly instalments of $116,667 plus interest at

banks acceptance rate plus 1%, maturity April 2018.

$

9,916,667

$

11,316,667

Term Loan Tranche D – Part B

repayable in monthly instalments of $127,000 including interest at

bankers acceptance rate plus1.5%, maturity April 2018

10,785,000

12,308,000

Term Loan Tranche E

repayable in monthly instalments of $117,762 plus interest at

bankers acceptance rate plus 1.5%, maturity September 2018.

12,011,816

13,424,960

Term Loan Tranche F

repayable in monthly instalments of $88,889 plus interest at

bankers acceptance rate plus 1.5%, maturity September 2018.

9,066,658

10,133,326

Term Loan Tranche F – Fixed Rate

repayable in monthly instalments of $4,460 plus interest at prime

rate, paid November 2015.

314,794

41,780,141

47,497,747

Less Current Portion

(5,402,812)

(5,456,329)

$

36,377,329

$

42,041,418

Principal repayments required for the above loans, assuming renewal under similar terms, are as follows:

2017

$

5,401,812

2018

5,402,812

2019

5,401,812

2020

5,402,812

2021

5,402,812

Thereafter

14,771,081

$

41,780,141

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 swap

terms are April 2023, August 2024, and August 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. An additional swap was entered related to Dakota Dunes on April 4, 2013. This arrangement fixed the

interest rate for the loan at 2.08% over the term of the loan. This swap term is April 2023. A liability of $5,443,107 has been

recorded at March 31, 2016 (2015 – $6,231,550), 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, 2016,

were $9,916,666 and $10,785,000 for Dakota Dunes, $12,011,816 for Living Sky, and $9,066,658 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, 2016, no amount is owing on the line of credit (2015 – $nil).

NOTES TO THE FINANCIAL STATEMENTS

Year Ended March 31, 2016