|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
For the quarterly period ended June 30, 2015
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from to
|
England and Wales
|
|
98-1112770
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
38 Hans Crescent, London, England
|
|
SW1X 0LZ
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
Class A
|
|
Class B
|
|
Class C
|
|||
Liberty Global ordinary shares
|
252,508,015
|
|
|
10,472,517
|
|
|
611,655,865
|
|
LiLAC ordinary shares
|
12,625,362
|
|
|
523,626
|
|
|
30,776,883
|
|
|
|
|
Page
Number
|
|
PART I — FINANCIAL INFORMATION
|
|
ITEM 1.
|
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
|
||
|
||
|
||
|
||
|
||
|
||
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
|
PART II — OTHER INFORMATION
|
|
ITEM 1A.
|
||
ITEM 2.
|
||
ITEM 6.
|
|
June 30,
2015 |
|
December 31,
2014 |
||||
|
in millions
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
819.5
|
|
|
$
|
1,158.5
|
|
Trade receivables, net
|
1,357.8
|
|
|
1,499.5
|
|
||
Deferred income taxes
|
307.7
|
|
|
290.3
|
|
||
Prepaid expenses
|
211.6
|
|
|
189.7
|
|
||
Derivative instruments (note 4)
|
248.3
|
|
|
446.6
|
|
||
Other current assets
|
306.8
|
|
|
335.9
|
|
||
Total current assets
|
3,251.7
|
|
|
3,920.5
|
|
||
Investments (including $1,928.8 million and $1,662.7 million, respectively, measured at fair value)
|
2,192.2
|
|
|
1,808.2
|
|
||
Property and equipment, net (note 6)
|
22,761.1
|
|
|
23,840.6
|
|
||
Goodwill (note 6)
|
28,159.0
|
|
|
29,001.6
|
|
||
Intangible assets subject to amortization, net (note 6)
|
7,999.5
|
|
|
9,189.8
|
|
||
Other assets, net (note 4)
|
5,630.2
|
|
|
5,081.2
|
|
||
Total assets
|
$
|
69,993.7
|
|
|
$
|
72,841.9
|
|
|
June 30,
2015 |
|
December 31,
2014 |
||||
|
in millions
|
||||||
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,062.2
|
|
|
$
|
1,039.0
|
|
Deferred revenue and advance payments from subscribers and others
|
1,449.8
|
|
|
1,452.2
|
|
||
Current portion of debt and capital lease obligations (note 7)
|
1,613.9
|
|
|
1,550.9
|
|
||
Accrued interest
|
705.1
|
|
|
690.6
|
|
||
Accrued capital expenditures
|
406.9
|
|
|
412.4
|
|
||
Derivative instruments (note 4)
|
385.2
|
|
|
1,043.7
|
|
||
Other accrued and current liabilities (note 11)
|
2,410.6
|
|
|
3,001.5
|
|
||
Total current liabilities
|
8,033.7
|
|
|
9,190.3
|
|
||
Long-term debt and capital lease obligations (note 7)
|
44,440.1
|
|
|
44,608.1
|
|
||
Other long-term liabilities (notes 4 and 11)
|
5,046.7
|
|
|
4,927.5
|
|
||
Total liabilities
|
57,520.5
|
|
|
58,725.9
|
|
||
Commitments and contingencies (notes 3, 4, 7, 8, 13 and 15)
|
|
|
|
||||
Equity (note 9):
|
|
|
|
||||
Liberty Global shareholders:
|
|
|
|
||||
Old Liberty Global Ordinary Shares - Class A, $0.01 nominal value. Issued and outstanding 252,505,774 and 251,167,686 shares, respectively
|
2.5
|
|
|
2.5
|
|
||
Old Liberty Global Ordinary Shares - Class B, $0.01 nominal value. Issued and outstanding 10,472,517 and 10,139,184 shares, respectively
|
0.1
|
|
|
0.1
|
|
||
Old Liberty Global Ordinary Shares - Class C, $0.01 nominal value. Issued and outstanding 614,457,550 and 630,353,372 shares, respectively
|
6.1
|
|
|
6.3
|
|
||
Additional paid-in capital
|
16,103.0
|
|
|
17,070.8
|
|
||
Accumulated deficit
|
(5,009.8
|
)
|
|
(4,007.6
|
)
|
||
Accumulated other comprehensive earnings, net of taxes
|
1,885.1
|
|
|
1,646.6
|
|
||
Treasury shares, at cost
|
(0.8
|
)
|
|
(4.2
|
)
|
||
Total Liberty Global shareholders
|
12,986.2
|
|
|
14,714.5
|
|
||
Noncontrolling interests
|
(513.0
|
)
|
|
(598.5
|
)
|
||
Total equity
|
12,473.2
|
|
|
14,116.0
|
|
||
Total liabilities and equity
|
$
|
69,993.7
|
|
|
$
|
72,841.9
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions, except share and per share amounts
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue (note 14)
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Operating (other than depreciation and amortization) (including share-based compensation) (note 10)
|
1,664.5
|
|
|
1,719.2
|
|
|
3,350.4
|
|
|
3,418.0
|
|
||||
Selling, general and administrative (
SG&A
) (including share-based compensation) (note 10)
|
773.6
|
|
|
792.5
|
|
|
1,578.7
|
|
|
1,555.0
|
|
||||
Depreciation and amortization
|
1,477.8
|
|
|
1,393.4
|
|
|
2,929.2
|
|
|
2,770.5
|
|
||||
Impairment, restructuring and other operating items, net (note 11)
|
25.7
|
|
|
27.6
|
|
|
42.7
|
|
|
141.2
|
|
||||
|
3,941.6
|
|
|
3,932.7
|
|
|
7,901.0
|
|
|
7,884.7
|
|
||||
Operating income
|
624.9
|
|
|
669.5
|
|
|
1,182.4
|
|
|
1,251.2
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(600.8
|
)
|
|
(641.8
|
)
|
|
(1,216.7
|
)
|
|
(1,295.3
|
)
|
||||
Realized and unrealized
losses
on derivative instruments, net (note 4)
|
(679.7
|
)
|
|
(328.6
|
)
|
|
(61.2
|
)
|
|
(705.2
|
)
|
||||
Foreign currency transaction gains (
losses)
, net
|
340.4
|
|
|
(36.4
|
)
|
|
(695.2
|
)
|
|
(57.2
|
)
|
||||
Realized and unrealized
gains
due to changes in fair values of certain investments, net (note 5)
|
110.8
|
|
|
157.4
|
|
|
262.2
|
|
|
97.2
|
|
||||
Losses on debt modification and extinguishment, net (note 7)
|
(73.8
|
)
|
|
(53.0
|
)
|
|
(348.3
|
)
|
|
(73.9
|
)
|
||||
Other income (expense), net
|
(1.7
|
)
|
|
(1.7
|
)
|
|
(2.7
|
)
|
|
11.6
|
|
||||
|
(904.8
|
)
|
|
(904.1
|
)
|
|
(2,061.9
|
)
|
|
(2,022.8
|
)
|
||||
Loss
from continuing operations before income taxes
|
(279.9
|
)
|
|
(234.6
|
)
|
|
(879.5
|
)
|
|
(771.6
|
)
|
||||
Income tax benefit (expense)
(note 8)
|
(130.0
|
)
|
|
0.6
|
|
|
(52.1
|
)
|
|
117.6
|
|
||||
Loss
from continuing operations
|
(409.9
|
)
|
|
(234.0
|
)
|
|
(931.6
|
)
|
|
(654.0
|
)
|
||||
Discontinued operation (note 1):
|
|
|
|
|
|
|
|
||||||||
Earnings from discontinued operation, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
Gain (adjustment to gain) on disposal of discontinued operation, net of taxes
|
—
|
|
|
(7.2
|
)
|
|
—
|
|
|
332.7
|
|
||||
|
—
|
|
|
(7.2
|
)
|
|
—
|
|
|
333.5
|
|
||||
Net
loss
|
(409.9
|
)
|
|
(241.2
|
)
|
|
(931.6
|
)
|
|
(320.5
|
)
|
||||
Net earnings
attributable to noncontrolling interests
|
(54.8
|
)
|
|
(8.7
|
)
|
|
(70.6
|
)
|
|
(8.2
|
)
|
||||
Net
loss
attributable to Liberty Global shareholders
|
$
|
(464.7
|
)
|
|
$
|
(249.9
|
)
|
|
$
|
(1,002.2
|
)
|
|
$
|
(328.7
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted loss
attributable to Liberty Global shareholders per share (note 12):
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
(0.53
|
)
|
|
$
|
(0.31
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.84
|
)
|
Discontinued operation
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
0.42
|
|
||||
|
$
|
(0.53
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.42
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average ordinary shares outstanding – basic and diluted
|
880,850,801
|
|
|
784,980,724
|
|
|
884,040,481
|
|
|
786,351,696
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net
loss
|
$
|
(409.9
|
)
|
|
$
|
(241.2
|
)
|
|
$
|
(931.6
|
)
|
|
$
|
(320.5
|
)
|
Other comprehensive
earnings (loss)
, net of taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
929.7
|
|
|
416.9
|
|
|
238.6
|
|
|
475.0
|
|
||||
Reclassification adjustments included in net
loss
|
0.9
|
|
|
0.1
|
|
|
1.0
|
|
|
64.2
|
|
||||
Other
|
0.5
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
||||
Other comprehensive
earnings
|
931.1
|
|
|
417.0
|
|
|
238.6
|
|
|
539.2
|
|
||||
Comprehensive
earnings (loss)
|
521.2
|
|
|
175.8
|
|
|
(693.0
|
)
|
|
218.7
|
|
||||
Comprehensive
earnings
attributable to noncontrolling interests
|
(54.8
|
)
|
|
(8.9
|
)
|
|
(70.7
|
)
|
|
(8.4
|
)
|
||||
Comprehensive
earnings (
loss)
attributable to Liberty Global shareholders
|
$
|
466.4
|
|
|
$
|
166.9
|
|
|
$
|
(763.7
|
)
|
|
$
|
210.3
|
|
|
Liberty Global shareholders
|
|
Non-controlling
interests
|
|
Total
equity
|
||||||||||||||||||||||||||||||||||
|
Old Liberty Global
Ordinary Shares
|
|
Additional
paid-in
capital
|
|
Accumulated
deficit
|
|
Accumulated
other
comprehensive
earnings,
net of taxes
|
|
Treasury shares, at cost
|
|
Total Liberty Global
shareholders
|
|
|||||||||||||||||||||||||||
|
Class A
|
|
Class B
|
|
Class C
|
|
|||||||||||||||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Balance at January 1, 2015
|
$
|
2.5
|
|
|
$
|
0.1
|
|
|
$
|
6.3
|
|
|
$
|
17,070.8
|
|
|
$
|
(4,007.6
|
)
|
|
$
|
1,646.6
|
|
|
$
|
(4.2
|
)
|
|
$
|
14,714.5
|
|
|
$
|
(598.5
|
)
|
|
$
|
14,116.0
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,002.2
|
)
|
|
—
|
|
|
—
|
|
|
(1,002.2
|
)
|
|
70.6
|
|
|
(931.6
|
)
|
||||||||||
Other comprehensive earnings, net of taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
238.5
|
|
|
—
|
|
|
238.5
|
|
|
0.1
|
|
|
238.6
|
|
||||||||||
Repurchase and cancellation of Old Liberty Global Ordinary Shares (note 9)
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(935.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(935.8
|
)
|
|
—
|
|
|
(935.8
|
)
|
||||||||||
Share-based compensation (note 10)
|
—
|
|
|
—
|
|
|
—
|
|
|
104.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
104.3
|
|
|
—
|
|
|
104.3
|
|
||||||||||
Liberty Global call option contracts
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(81.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(81.6
|
)
|
|
—
|
|
|
(81.6
|
)
|
||||||||||
Adjustments due to changes in subsidiaries’ equity and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
(54.9
|
)
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
(51.5
|
)
|
|
14.8
|
|
|
(36.7
|
)
|
||||||||||
Balance at June 30, 2015
|
$
|
2.5
|
|
|
$
|
0.1
|
|
|
$
|
6.1
|
|
|
$
|
16,103.0
|
|
|
$
|
(5,009.8
|
)
|
|
$
|
1,885.1
|
|
|
$
|
(0.8
|
)
|
|
$
|
12,986.2
|
|
|
$
|
(513.0
|
)
|
|
$
|
12,473.2
|
|
|
Six months ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
in millions
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net
loss
|
$
|
(931.6
|
)
|
|
$
|
(320.5
|
)
|
Earnings
from discontinued operation
|
—
|
|
|
(333.5
|
)
|
||
Loss
from continuing operations
|
(931.6
|
)
|
|
(654.0
|
)
|
||
Adjustments to reconcile loss
from continuing operations to net cash provided by operating activities:
|
|
|
|
||||
Share-based compensation expense
|
128.0
|
|
|
109.5
|
|
||
Depreciation and amortization
|
2,929.2
|
|
|
2,770.5
|
|
||
Impairment, restructuring and other operating items, net
|
42.7
|
|
|
141.2
|
|
||
Amortization of deferred financing costs and non-cash interest accretion
|
34.2
|
|
|
41.8
|
|
||
Realized and unrealized losses on derivative instruments, net
|
61.2
|
|
|
705.2
|
|
||
Foreign currency transaction losses, net
|
695.2
|
|
|
57.2
|
|
||
Realized and unrealized gains
due to changes in fair values of certain investments, including impact of dividends
|
(261.1
|
)
|
|
(97.2
|
)
|
||
Losses on debt modification and extinguishment, net
|
348.3
|
|
|
73.9
|
|
||
Deferred income tax benefit
|
(142.7
|
)
|
|
(248.4
|
)
|
||
Excess tax benefit from share-based compensation
|
(17.9
|
)
|
|
—
|
|
||
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions
|
(199.7
|
)
|
|
17.0
|
|
||
Net cash used by operating activities of discontinued operation
|
—
|
|
|
(9.6
|
)
|
||
Net cash provided by operating activities
|
2,685.8
|
|
|
2,907.1
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(1,262.4
|
)
|
|
(1,402.0
|
)
|
||
Cash paid in connection with acquisitions, net of cash acquired
|
(279.3
|
)
|
|
(32.3
|
)
|
||
Investments in and loans to affiliates and others
|
(161.4
|
)
|
|
(18.6
|
)
|
||
Proceeds received upon disposition of discontinued operation, net of disposal costs
|
—
|
|
|
985.2
|
|
||
Other investing activities, net
|
11.0
|
|
|
11.1
|
|
||
Net cash used by investing activities of discontinued operation
|
—
|
|
|
(3.8
|
)
|
||
Net cash used by investing activities
|
$
|
(1,692.1
|
)
|
|
$
|
(460.4
|
)
|
|
Six months ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
in millions
|
||||||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings of debt
|
$
|
11,192.3
|
|
|
$
|
3,605.8
|
|
Repayments and repurchases of debt and capital lease obligations
|
(10,717.8
|
)
|
|
(6,328.9
|
)
|
||
Repurchase of Old Liberty Global Ordinary Shares
|
(908.1
|
)
|
|
(895.9
|
)
|
||
Payment of financing costs and debt premiums
|
(356.5
|
)
|
|
(172.2
|
)
|
||
Net cash paid related to derivative instruments
|
(303.3
|
)
|
|
(177.6
|
)
|
||
Purchase of additional shares of subsidiaries
|
(142.2
|
)
|
|
—
|
|
||
Net cash paid associated with call option contracts on Old Liberty Global Ordinary Shares
|
(121.2
|
)
|
|
(98.8
|
)
|
||
Other financing activities, net
|
24.3
|
|
|
7.7
|
|
||
Net cash used by financing activities of discontinued operation
|
—
|
|
|
(1.2
|
)
|
||
Net cash used by financing activities
|
(1,332.5
|
)
|
|
(4,061.1
|
)
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash – continuing operations
|
(0.2
|
)
|
|
22.7
|
|
||
|
|
|
|
|
|
||
Net
decrease
in cash and cash equivalents:
|
|
|
|
||||
Continuing operations
|
(339.0
|
)
|
|
(1,577.1
|
)
|
||
Discontinued operation
|
—
|
|
|
(14.6
|
)
|
||
Net decrease in cash and cash equivalents
|
(339.0
|
)
|
|
(1,591.7
|
)
|
||
Cash and cash equivalents:
|
|
|
|
||||
Beginning of period
|
1,158.5
|
|
|
2,701.9
|
|
||
End of period
|
$
|
819.5
|
|
|
$
|
1,110.2
|
|
|
|
|
|
||||
Cash paid for interest – continuing operations
|
$
|
1,138.2
|
|
|
$
|
1,199.1
|
|
Net cash
paid
for taxes:
|
|
|
|
||||
Continuing operations
|
$
|
167.3
|
|
|
$
|
54.5
|
|
Discontinued operation
|
—
|
|
|
2.2
|
|
||
Total
|
$
|
167.3
|
|
|
$
|
56.7
|
|
Cash and cash equivalents
|
$
|
3.6
|
|
Other current assets
|
7.8
|
|
|
Property and equipment, net
|
80.4
|
|
|
Goodwill (a)
|
51.5
|
|
|
Intangible assets subject to amortization (b)
|
58.9
|
|
|
Franchise rights
|
147.6
|
|
|
Other assets, net
|
0.3
|
|
|
Other accrued and current liabilities
|
(13.2
|
)
|
|
Non-current deferred tax liabilities
|
(60.8
|
)
|
|
Total purchase price (c)
|
$
|
276.1
|
|
(a)
|
The goodwill recognized in connection with the
Choice Acquisition
is primarily attributable to (i) the ability to take advantage of
Choice
’s existing advanced broadband communications network to gain immediate access to potential customers and (ii) substantial synergies that are expected to be achieved through the integration of
Choice
with
Liberty Puerto Rico
. The entire amount of goodwill is expected to be deductible for
U.S.
tax purposes.
|
(b)
|
Amount primarily includes intangible assets related to customer relationships. As of
June 3, 2015
, the weighted average useful life of
Choice
’s intangible assets was approximately
ten years
.
|
(c)
|
Excludes direct acquisition costs of
$8.3 million
, which are included in impairment, restructuring and other operating items, net, in our condensed consolidated statements of operations.
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions, except per share amounts
|
||||||||||||||
Revenue:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
4,255.1
|
|
|
$
|
4,847.7
|
|
|
$
|
8,484.2
|
|
|
$
|
9,617.1
|
|
Discontinued operation
|
—
|
|
|
—
|
|
|
—
|
|
|
26.6
|
|
||||
Total - Liberty Global Group
|
4,255.1
|
|
|
4,847.7
|
|
|
8,484.2
|
|
|
9,643.7
|
|
||||
LiLAC Group
|
326.4
|
|
|
328.1
|
|
|
636.3
|
|
|
649.7
|
|
||||
Intergroup eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Total
|
$
|
4,581.5
|
|
|
$
|
5,175.8
|
|
|
$
|
9,120.5
|
|
|
$
|
10,293.3
|
|
|
|
|
|
|
|
|
|
||||||||
Net
loss
attributable to Liberty Global shareholders:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
(457.3
|
)
|
|
$
|
(452.0
|
)
|
|
$
|
(1,025.4
|
)
|
|
$
|
(603.3
|
)
|
LiLAC Group
|
(7.5
|
)
|
|
7.6
|
|
|
25.0
|
|
|
(59.3
|
)
|
||||
Total
|
$
|
(464.8
|
)
|
|
$
|
(444.4
|
)
|
|
$
|
(1,000.4
|
)
|
|
$
|
(662.6
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted loss attributable to Liberty Global shareholders per share
|
$
|
(0.53
|
)
|
|
$
|
(0.49
|
)
|
|
$
|
(1.13
|
)
|
|
$
|
(0.73
|
)
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Current
|
|
Long-term (a)
|
|
Total
|
|
Current
|
|
Long-term (a)
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cross-currency and interest rate derivative contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
$
|
187.8
|
|
|
$
|
1,239.5
|
|
|
$
|
1,427.3
|
|
|
$
|
443.6
|
|
|
$
|
812.5
|
|
|
$
|
1,256.1
|
|
LiLAC Group
|
—
|
|
|
189.4
|
|
|
189.4
|
|
|
—
|
|
|
101.2
|
|
|
101.2
|
|
||||||
Total cross-currency and interest rate derivative contracts (b)
|
187.8
|
|
|
1,428.9
|
|
|
1,616.7
|
|
|
443.6
|
|
|
913.7
|
|
|
1,357.3
|
|
||||||
Equity-related derivative instruments - Liberty Global Group (c)
|
54.1
|
|
|
280.6
|
|
|
334.7
|
|
|
—
|
|
|
400.2
|
|
|
400.2
|
|
||||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Liberty Global Group
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
||||||
LiLAC Group
|
3.3
|
|
|
—
|
|
|
3.3
|
|
|
1.1
|
|
|
—
|
|
|
1.1
|
|
||||||
Total foreign currency forward contracts
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
||||||
Other - Liberty Global Group
|
1.5
|
|
|
1.0
|
|
|
2.5
|
|
|
0.5
|
|
|
0.9
|
|
|
1.4
|
|
||||||
Total assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
245.0
|
|
|
1,521.1
|
|
|
1,766.1
|
|
|
445.5
|
|
|
1,213.6
|
|
|
1,659.1
|
|
||||||
LiLAC Group
|
3.3
|
|
|
189.4
|
|
|
192.7
|
|
|
1.1
|
|
|
101.2
|
|
|
102.3
|
|
||||||
Total
|
$
|
248.3
|
|
|
$
|
1,710.5
|
|
|
$
|
1,958.8
|
|
|
$
|
446.6
|
|
|
$
|
1,314.8
|
|
|
$
|
1,761.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Current
|
|
Long-term (a)
|
|
Total
|
|
Current
|
|
Long-term (a)
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cross-currency and interest rate derivative contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
$
|
309.8
|
|
|
$
|
1,636.5
|
|
|
$
|
1,946.3
|
|
|
$
|
987.9
|
|
|
$
|
1,443.9
|
|
|
$
|
2,431.8
|
|
LiLAC Group
|
32.6
|
|
|
3.0
|
|
|
35.6
|
|
|
39.5
|
|
|
—
|
|
|
39.5
|
|
||||||
Total cross-currency and interest rate derivative contracts (b)
|
342.4
|
|
|
1,639.5
|
|
|
1,981.9
|
|
|
1,027.4
|
|
|
1,443.9
|
|
|
2,471.3
|
|
||||||
Equity-related derivative instruments - Liberty Global Group (c)
|
33.4
|
|
|
231.9
|
|
|
265.3
|
|
|
15.3
|
|
|
73.1
|
|
|
88.4
|
|
||||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
9.3
|
|
|
—
|
|
|
9.3
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||||
LiLAC Group
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||||
Total foreign currency forward contracts
|
9.3
|
|
|
—
|
|
|
9.3
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
||||||
Other - Liberty Global Group
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
0.3
|
|
||||||
Total liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
352.6
|
|
|
1,868.5
|
|
|
2,221.1
|
|
|
1,004.0
|
|
|
1,517.1
|
|
|
2,521.1
|
|
||||||
LiLAC Group
|
32.6
|
|
|
3.0
|
|
|
35.6
|
|
|
39.7
|
|
|
—
|
|
|
39.7
|
|
||||||
Total
|
$
|
385.2
|
|
|
$
|
1,871.5
|
|
|
$
|
2,256.7
|
|
|
$
|
1,043.7
|
|
|
$
|
1,517.1
|
|
|
$
|
2,560.8
|
|
(a)
|
Our long-term derivative assets and liabilities are included in other assets, net, and other long-term liabilities, respectively, in our condensed consolidated balance sheets.
|
(b)
|
We consider credit risk in our fair value assessments. As of
June 30, 2015
and
December 31, 2014
, (i) the fair values of our cross-currency and interest rate derivative contracts that represented assets have been reduced by credit risk valuation adjustments aggregating
$63.3 million
and
$30.9 million
, respectively, and (ii) the fair values of our cross-currency and interest rate derivative contracts that represented liabilities have been reduced by credit risk valuation adjustments aggregating
$155.4 million
and
$64.6 million
, respectively. The adjustments to our derivative assets relate to the credit risk associated with counterparty nonperformance and the adjustments to our derivative liabilities relate to credit risk associated with our own nonperformance. In all cases, the adjustments take into account offsetting liability or asset positions within a given contract. Our determination of credit risk valuation adjustments generally is based on our and our counterparties’ credit risks, as observed in the credit default swap market and market quotations for certain of our subsidiaries’ debt instruments, as applicable. The changes in the credit risk valuation adjustments associated with our cross-currency and interest rate derivative contracts resulted in a net gain (loss) of
$77.2 million
and (
$19.4 million
) during the
three months ended June 30, 2015
and
2014
, respectively, and a net gain (loss) of
$60.3 million
and (
$48.9 million
) during the
six months ended June 30, 2015
and
2014
, respectively. These amounts are included in realized and unrealized losses on derivative instruments, net, in our condensed consolidated statements of operations. For further information regarding our fair value measurements, see note
5
.
|
(c)
|
Our equity-related derivative instruments primarily include the fair value of (i) the share collar (the
ITV Collar
) with respect to the ITV plc (
ITV
) shares held by our company at
June 30, 2015
, (ii) the share collar (the
Sumitomo Collar
) with respect to the shares of Sumitomo Corporation held by our company and (iii)
Virgin Media
’s conversion hedges (the
Virgin Media Capped Calls
) with respect to
Virgin Media
’s
6.50%
convertible senior notes. The fair values of our equity collars do not include credit risk valuation adjustments as we assume that any losses incurred by our company in the event of
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Cross-currency and interest rate derivative contracts:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
(547.7
|
)
|
|
$
|
(287.6
|
)
|
|
$
|
114.6
|
|
|
$
|
(580.3
|
)
|
LiLAC Group
|
(0.6
|
)
|
|
1.9
|
|
|
77.6
|
|
|
(125.6
|
)
|
||||
Total cross-currency and interest rate derivative contracts
|
(548.3
|
)
|
|
(285.7
|
)
|
|
192.2
|
|
|
(705.9
|
)
|
||||
Equity-related derivative instruments - Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
ITV Collar
|
(53.5
|
)
|
|
—
|
|
|
(158.9
|
)
|
|
—
|
|
||||
Sumitomo Collar
|
(61.8
|
)
|
|
(23.8
|
)
|
|
(71.9
|
)
|
|
(15.3
|
)
|
||||
Ziggo Collar
|
—
|
|
|
(21.3
|
)
|
|
—
|
|
|
(5.9
|
)
|
||||
Other
|
0.5
|
|
|
0.7
|
|
|
1.1
|
|
|
0.9
|
|
||||
Total equity-related derivative instruments
|
(114.8
|
)
|
|
(44.4
|
)
|
|
(229.7
|
)
|
|
(20.3
|
)
|
||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
(18.1
|
)
|
|
0.5
|
|
|
(27.4
|
)
|
|
19.6
|
|
||||
LiLAC Group
|
1.8
|
|
|
(0.1
|
)
|
|
3.0
|
|
|
0.8
|
|
||||
Total foreign currency forward contracts
|
(16.3
|
)
|
|
0.4
|
|
|
(24.4
|
)
|
|
20.4
|
|
||||
Other - Liberty Global Group
|
(0.3
|
)
|
|
1.1
|
|
|
0.7
|
|
|
0.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total Liberty Global Group
|
(680.9
|
)
|
|
(330.4
|
)
|
|
(141.8
|
)
|
|
(580.4
|
)
|
||||
Total LiLAC Group
|
1.2
|
|
|
1.8
|
|
|
80.6
|
|
|
(124.8
|
)
|
||||
Total
|
$
|
(679.7
|
)
|
|
$
|
(328.6
|
)
|
|
$
|
(61.2
|
)
|
|
$
|
(705.2
|
)
|
|
Six months ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
in millions
|
||||||
Operating activities:
|
|
|
|
||||
Liberty Global Group
|
$
|
(161.3
|
)
|
|
$
|
(252.1
|
)
|
LiLAC Group
|
(17.7
|
)
|
|
3.6
|
|
||
Total operating activities
|
(179.0
|
)
|
|
(248.5
|
)
|
||
Investing activities - LiLAC Group
|
(0.4
|
)
|
|
—
|
|
||
Financing activities:
|
|
|
|
||||
Liberty Global Group
|
(303.3
|
)
|
|
(140.2
|
)
|
||
LiLAC Group
|
—
|
|
|
(37.4
|
)
|
||
Total financing activities
|
(303.3
|
)
|
|
(177.6
|
)
|
||
Total cash outflows:
|
|
|
|
||||
Liberty Global Group
|
(464.6
|
)
|
|
(392.3
|
)
|
||
LiLAC Group
|
(18.1
|
)
|
|
(33.8
|
)
|
||
Total
|
$
|
(482.7
|
)
|
|
$
|
(426.1
|
)
|
Subsidiary /
F
inal maturity date
|
|
Notional
amount
due from
counterparty
|
|
Notional
amount
due to
counterparty
|
|
Interest rate
due from
counterparty
|
|
Interest rate
due to
counterparty
|
||||
|
|
in millions
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
Virgin Media Investment Holdings Limited (
VMIH
), a subsidiary of Virgin Media:
|
|
|
|
|
|
|
|
|
|
|||
January 2023
|
|
$
|
400.0
|
|
|
€
|
339.6
|
|
|
5.75%
|
|
4.33%
|
June 2023
|
|
$
|
1,855.0
|
|
|
£
|
1,198.3
|
|
|
6 mo. LIBOR + 2.75%
|
|
6 mo. GBP LIBOR + 3.18%
|
February 2022
|
|
$
|
1,400.0
|
|
|
£
|
873.6
|
|
|
5.01%
|
|
5.49%
|
January 2023
|
|
$
|
1,000.0
|
|
|
£
|
648.6
|
|
|
5.25%
|
|
5.32%
|
January 2021
|
|
$
|
500.0
|
|
|
£
|
308.9
|
|
|
5.25%
|
|
6 mo. GBP LIBOR + 2.06%
|
October 2022
|
|
$
|
450.0
|
|
|
£
|
272.0
|
|
|
6.00%
|
|
6.43%
|
January 2022
|
|
$
|
425.0
|
|
|
£
|
255.8
|
|
|
5.50%
|
|
5.82%
|
April 2019
|
|
$
|
191.5
|
|
|
£
|
122.3
|
|
|
5.38%
|
|
5.49%
|
November 2016 (a)
|
|
$
|
55.0
|
|
|
£
|
27.7
|
|
|
6.50%
|
|
7.03%
|
October 2019
|
|
$
|
50.0
|
|
|
£
|
30.3
|
|
|
8.38%
|
|
8.98%
|
October 2019 - October 2022
|
|
$
|
50.0
|
|
|
£
|
30.7
|
|
|
6.00%
|
|
5.75%
|
UPC Broadband Holding BV (
UPC Broadband Holding
), a subsidiary of UPC Holding:
|
|
|
|
|
|
|
|
|
|
|||
January 2023
|
|
$
|
1,140.0
|
|
|
€
|
1,043.7
|
|
|
5.38%
|
|
3.71%
|
July 2021
|
|
$
|
440.0
|
|
|
€
|
337.2
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. EURIBOR + 2.87%
|
January 2017 - July 2021
|
|
$
|
262.1
|
|
|
€
|
194.1
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. EURIBOR + 2.51%
|
January 2020
|
|
$
|
252.5
|
|
|
€
|
192.5
|
|
|
6 mo. LIBOR + 4.93%
|
|
7.49%
|
November 2019
|
|
$
|
250.0
|
|
|
€
|
181.5
|
|
|
7.25%
|
|
7.74%
|
November 2021
|
|
$
|
250.0
|
|
|
€
|
181.4
|
|
|
7.25%
|
|
7.50%
|
October 2020
|
|
$
|
125.0
|
|
|
€
|
91.3
|
|
|
6 mo. LIBOR + 3.00%
|
|
6 mo. EURIBOR + 3.04%
|
January 2020
|
|
$
|
122.5
|
|
|
€
|
93.4
|
|
|
6 mo. LIBOR + 4.94%
|
|
6 mo. EURIBOR + 4.87%
|
December 2016
|
|
$
|
340.0
|
|
|
CHF
|
370.9
|
|
|
6 mo. LIBOR + 3.50%
|
|
6 mo. CHF LIBOR + 4.01%
|
July 2016 - January 2020
|
|
$
|
225.0
|
|
|
CHF
|
206.3
|
|
|
6 mo. LIBOR + 4.81%
|
|
5.44%
|
July 2016 (a)
|
|
$
|
225.0
|
|
|
CHF
|
206.3
|
|
|
6 mo. LIBOR + 4.81%
|
|
1.00%
|
July 2021
|
|
$
|
200.0
|
|
|
CHF
|
186.0
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.55%
|
January 2017 - July 2023
|
|
$
|
200.0
|
|
|
CHF
|
185.5
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.48%
|
November 2019
|
|
$
|
175.0
|
|
|
CHF
|
158.7
|
|
|
7.25%
|
|
6 mo. CHF LIBOR + 5.01%
|
January 2017 - July 2021
|
|
$
|
100.0
|
|
|
CHF
|
92.8
|
|
|
6 mo. LIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.49%
|
Subsidiary /
F
inal maturity date
|
|
Notional
amount
due from
counterparty
|
|
Notional
amount
due to
counterparty
|
|
Interest rate
due from
counterparty
|
|
Interest rate
due to
counterparty
|
||||
|
|
in millions
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
July 2016 (a)
|
|
$
|
201.5
|
|
|
RON
|
489.3
|
|
|
6 mo. LIBOR + 3.50%
|
|
1.40%
|
July 2016 - July 2020
|
|
$
|
201.5
|
|
|
RON
|
489.3
|
|
|
6 mo. LIBOR + 3.50%
|
|
11.34%
|
January 2021
|
|
€
|
720.8
|
|
|
CHF
|
877.0
|
|
|
6 mo. EURIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.62%
|
January 2017 - September 2022
|
|
€
|
383.8
|
|
|
CHF
|
477.0
|
|
|
6 mo. EURIBOR + 2.00%
|
|
6 mo. CHF LIBOR + 2.22%
|
January 2017
|
|
€
|
360.4
|
|
|
CHF
|
589.0
|
|
|
6 mo. EURIBOR + 3.75%
|
|
6 mo. CHF LIBOR + 3.94%
|
April 2018
|
|
€
|
285.1
|
|
|
CHF
|
346.7
|
|
|
10.51%
|
|
9.87%
|
January 2020
|
|
€
|
175.0
|
|
|
CHF
|
258.6
|
|
|
7.63%
|
|
6.76%
|
July 2020
|
|
€
|
107.4
|
|
|
CHF
|
129.0
|
|
|
6 mo. EURIBOR + 3.00%
|
|
6 mo. CHF LIBOR + 3.28%
|
July 2023
|
|
€
|
85.3
|
|
|
CHF
|
95.0
|
|
|
6 mo. EURIBOR + 2.21%
|
|
6 mo. CHF LIBOR + 2.65%
|
July 2021
|
|
€
|
76.1
|
|
|
CHF
|
92.1
|
|
|
6 mo. EURIBOR + 2.50%
|
|
6 mo. CHF LIBOR + 2.88%
|
January 2017
|
|
€
|
75.0
|
|
|
CHF
|
110.9
|
|
|
7.63%
|
|
6.98%
|
December 2015
|
|
€
|
69.1
|
|
|
CLP
|
53,000.0
|
|
|
3.50%
|
|
5.75%
|
January 2020
|
|
€
|
318.9
|
|
|
CZK
|
8,818.7
|
|
|
5.58%
|
|
5.44%
|
January 2017
|
|
€
|
60.0
|
|
|
CZK
|
1,703.1
|
|
|
5.50%
|
|
6.99%
|
July 2017
|
|
€
|
39.6
|
|
|
CZK
|
1,000.0
|
|
|
3.00%
|
|
3.75%
|
July 2016 (a)
|
|
€
|
260.0
|
|
|
HUF
|
75,570.0
|
|
|
5.50%
|
|
5.00%
|
July 2016 - January 2017
|
|
€
|
260.0
|
|
|
HUF
|
75,570.0
|
|
|
5.50%
|
|
10.56%
|
December 2016
|
|
€
|
150.0
|
|
|
HUF
|
43,367.5
|
|
|
5.50%
|
|
2.00%
|
July 2018
|
|
€
|
78.0
|
|
|
HUF
|
19,500.0
|
|
|
5.50%
|
|
9.15%
|
January 2017
|
|
€
|
245.0
|
|
|
PLN
|
1,000.6
|
|
|
5.50%
|
|
9.03%
|
September 2016
|
|
€
|
200.0
|
|
|
PLN
|
892.7
|
|
|
6.00%
|
|
3.91%
|
January 2020
|
|
€
|
144.6
|
|
|
PLN
|
605.0
|
|
|
5.50%
|
|
7.98%
|
July 2017
|
|
€
|
82.0
|
|
|
PLN
|
318.0
|
|
|
3.00%
|
|
5.60%
|
December 2015
|
|
CLP 53,000.0
|
|
|
€
|
69.1
|
|
|
5.75%
|
|
3.50%
|
|
Amsterdamse Beheer-en Consultingmaatschappij BV (
ABC B.V.
), a subsidiary of Ziggo Group Holding:
|
|
|
|
|
|
|
|
|
|
|||
January 2022
|
|
$
|
2,350.0
|
|
|
€
|
1,727.0
|
|
|
6 mo. LIBOR + 2.75%
|
|
4.56%
|
January 2023
|
|
$
|
400.0
|
|
|
€
|
339.0
|
|
|
5.88%
|
|
4.58%
|
Unitymedia Hessen GmbH & Co. KG (
Unitymedia Hessen
), a subsidiary of Unitymedia:
|
|
|
|
|
|
|
|
|
|
|
|
|
January 2023
|
|
$
|
1,652.9
|
|
|
€
|
1,252.5
|
|
|
5.67%
|
|
4.50%
|
January 2021
|
|
$
|
797.1
|
|
|
€
|
546.5
|
|
|
5.50%
|
|
5.60%
|
VTR:
|
|
|
|
|
|
|
|
|
|
|||
January 2022
|
|
$
|
1,400.0
|
|
|
CLP
|
760,340.0
|
|
|
6.88%
|
|
10.94%
|
(a)
|
Unlike the other cross-currency swaps presented in this table, the identified cross-currency swaps do not involve the exchange of notional amounts at the inception and maturity of the instruments. Accordingly, the only cash flows associated with these instruments are interest payments and receipts.
|
Subsidiary / Final maturity date
|
|
Notional amount
|
|
Interest rate due from
counterparty
|
|
Interest rate due to
counterparty
|
||
|
|
in millions
|
|
|
|
|
||
VMIH:
|
|
|
|
|
|
|
|
|
October 2018
|
|
£
|
2,155.0
|
|
|
6 mo. GBP LIBOR
|
|
1.52%
|
October 2018 - June 2023
|
|
£
|
1,200.0
|
|
|
6 mo. GBP LIBOR
|
|
2.49%
|
January 2021
|
|
£
|
650.0
|
|
|
5.50%
|
|
6 mo. GBP LIBOR + 1.84%
|
January 2021
|
|
£
|
650.0
|
|
|
6 mo. GBP LIBOR + 1.84%
|
|
3.87%
|
December 2015
|
|
£
|
600.0
|
|
|
6 mo. GBP LIBOR
|
|
2.90%
|
April 2018
|
|
£
|
300.0
|
|
|
6 mo. GBP LIBOR
|
|
1.37%
|
UPC Broadband Holding:
|
|
|
|
|
|
|
|
|
January 2022
|
|
$
|
675.0
|
|
|
6.88%
|
|
6 mo. LIBOR + 4.90%
|
July 2020
|
|
€
|
750.0
|
|
|
6.38%
|
|
6 mo. EURIBOR + 3.16%
|
July 2016
|
|
€
|
503.4
|
|
|
6 mo. EURIBOR
|
|
0.20%
|
July 2016 - January 2021
|
|
€
|
250.0
|
|
|
6 mo. EURIBOR
|
|
2.52%
|
July 2016 - January 2023
|
|
€
|
210.0
|
|
|
6 mo. EURIBOR
|
|
2.88%
|
November 2021
|
|
€
|
107.0
|
|
|
6 mo. EURIBOR
|
|
2.89%
|
July 2016 - July 2020
|
|
€
|
43.4
|
|
|
6 mo. EURIBOR
|
|
3.95%
|
July 2016
|
|
CHF
|
900.0
|
|
|
6 mo. CHF LIBOR
|
|
0.05%
|
January 2022
|
|
CHF
|
711.5
|
|
|
6 mo. CHF LIBOR
|
|
1.89%
|
July 2016 - January 2021
|
|
CHF
|
500.0
|
|
|
6 mo. CHF LIBOR
|
|
1.65%
|
July 2016 - January 2018
|
|
CHF
|
400.0
|
|
|
6 mo. CHF LIBOR
|
|
2.51%
|
December 2016
|
|
CHF
|
370.9
|
|
|
6 mo. CHF LIBOR
|
|
3.82%
|
November 2019
|
|
CHF
|
226.8
|
|
|
6 mo. CHF LIBOR + 5.01%
|
|
6.88%
|
ABC B.V.:
|
|
|
|
|
|
|
|
|
January 2022
|
|
€
|
1,566.0
|
|
|
6 mo. EURIBOR
|
|
1.66%
|
January 2016
|
|
€
|
689.0
|
|
|
1 mo. EURIBOR + 3.75%
|
|
6 mo. EURIBOR + 3.59%
|
January 2021
|
|
€
|
500.0
|
|
|
6 mo. EURIBOR
|
|
2.60%
|
July 2016
|
|
€
|
290.0
|
|
|
6 mo. EURIBOR
|
|
0.20%
|
July 2016 - January 2023
|
|
€
|
290.0
|
|
|
6 mo. EURIBOR
|
|
2.84%
|
March 2021
|
|
€
|
175.0
|
|
|
6 mo. EURIBOR
|
|
2.32%
|
July 2016
|
|
€
|
171.3
|
|
|
6 mo. EURIBOR
|
|
0.20%
|
July 2016 - January 2022
|
|
€
|
171.3
|
|
|
6 mo. EURIBOR
|
|
3.44%
|
Telenet International Finance S.a.r.l (
Telenet International
), a subsidiary of Telenet:
|
|
|
|
|
|
|
|
|
June 2023
|
|
€
|
500.0
|
|
|
3 mo. EURIBOR
|
|
1.45%
|
Subsidiary / Final maturity date
|
|
Notional amount
|
|
Interest rate due from
counterparty
|
|
Interest rate due to
counterparty
|
||
|
|
in millions
|
|
|
|
|
||
July 2017 - June 2022
|
|
€
|
420.0
|
|
|
3 mo. EURIBOR
|
|
2.08%
|
June 2021
|
|
€
|
400.0
|
|
|
3 mo. EURIBOR
|
|
0.41%
|
July 2017 - June 2023
|
|
€
|
382.0
|
|
|
3 mo. EURIBOR
|
|
1.89%
|
July 2017
|
|
€
|
150.0
|
|
|
3 mo. EURIBOR
|
|
3.55%
|
August 2015 - June 2022
|
|
€
|
55.0
|
|
|
3 mo. EURIBOR
|
|
1.81%
|
Liberty Puerto Rico:
|
|
|
|
|
|
|
|
|
October 2016 - January 2022
|
|
$
|
506.3
|
|
|
3 mo. LIBOR
|
|
2.49%
|
October 2016 - January 2019
|
|
$
|
168.8
|
|
|
3 mo. LIBOR
|
|
1.96%
|
Subsidiary / Final maturity date
|
|
Notional amount
|
|
EURIBOR cap rate
|
||
|
|
in millions
|
|
|
||
Interest rate caps purchased (a):
|
|
|
|
|
||
Liberty Global Europe Financing BV (
LGE Financing
), the immediate parent of UPC Holding:
|
|
|
|
|||
January 2020
|
€
|
735.0
|
|
|
7.00%
|
|
Telenet International:
|
|
|
|
|||
June 2017
|
€
|
50.0
|
|
|
4.50%
|
|
Telenet NV, a subsidiary of Telenet:
|
|
|
|
|||
December 2017
|
€
|
0.5
|
|
|
6.50%
|
|
December 2017
|
€
|
0.5
|
|
|
5.50%
|
|
|
|
|
|
|
||
Interest rate cap sold (b):
|
|
|
|
|
||
UPC Broadband Holding:
|
|
|
|
|||
January 2020
|
€
|
735.0
|
|
|
7.00%
|
(a)
|
Our purchased interest rate caps entitle us to receive payments from the counterparty when
EURIBOR
exceeds the
EURIBOR
cap rate.
|
(b)
|
Our sold interest rate cap requires that we make payments to the counterparty when
EURIBOR
exceeds the
EURIBOR
cap rate.
|
Subsidiary / Final maturity date
|
|
Notional
amount
|
|
EURIBOR floor rate (a)
|
|
EURIBOR cap rate (b)
|
||
|
|
in millions
|
|
|
|
|
||
UPC Broadband Holding:
|
|
|
|
|
|
|
||
January 2020
|
€
|
1,135.0
|
|
|
1.00%
|
|
3.54%
|
|
Telenet International:
|
|
|
|
|
|
|
||
July 2017
|
€
|
650.0
|
|
|
2.00%
|
|
4.00%
|
(a)
|
We make payments to the counterparty when
EURIBOR
is less than the
EURIBOR
floor rate.
|
(b)
|
We receive payments from the counterparty when
EURIBOR
is greater than the
EURIBOR
cap rate.
|
Subsidiary
|
|
Currency
purchased
forward
|
|
Currency
sold
forward
|
|
Maturity dates
|
||||
|
|
in millions
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||
LGE Financing
|
$
|
375.6
|
|
|
€
|
334.8
|
|
|
July 2015 - June 2016
|
|
UPC Broadband Holding
|
$
|
16.6
|
|
|
CZK
|
405.0
|
|
|
July 2015 - March 2016
|
|
UPC Broadband Holding
|
€
|
50.5
|
|
|
CHF
|
58.3
|
|
|
July 2015 - March 2016
|
|
UPC Broadband Holding
|
€
|
14.6
|
|
|
CZK
|
405.0
|
|
|
July 2015 - March 2016
|
|
UPC Broadband Holding
|
€
|
14.4
|
|
|
HUF
|
4,500.0
|
|
|
July 2015 - March 2016
|
|
UPC Broadband Holding
|
€
|
28.3
|
|
|
PLN
|
120.0
|
|
|
July 2015 - December 2015
|
|
UPC Broadband Holding
|
€
|
27.0
|
|
|
RON
|
121.1
|
|
|
July 2015 - March 2016
|
|
UPC Broadband Holding
|
£
|
2.7
|
|
|
€
|
3.6
|
|
|
July 2015 - March 2016
|
|
UPC Broadband Holding
|
CHF
|
35.5
|
|
|
€
|
34.0
|
|
|
July 2015
|
|
UPC Broadband Holding
|
CZK
|
500.0
|
|
|
€
|
18.4
|
|
|
July 2015
|
|
UPC Broadband Holding
|
HUF
|
6,000.0
|
|
|
€
|
19.2
|
|
|
July 2015
|
|
UPC Broadband Holding
|
PLN
|
60.0
|
|
|
€
|
14.4
|
|
|
July 2015
|
|
UPC Broadband Holding
|
RON
|
5.0
|
|
|
€
|
1.1
|
|
|
July 2015
|
|
Telenet NV
|
$
|
54.3
|
|
|
€
|
48.4
|
|
|
July 2015 - June 2016
|
|
VTR
|
$
|
84.1
|
|
|
CLP
|
52,149.9
|
|
|
July 2015 - May 2016
|
|
|
|
Fair value measurements at June 30, 2015 using:
|
||||||||||||
Description
|
June 30,
2015 |
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
|
in millions
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,616.7
|
|
|
$
|
—
|
|
|
$
|
1,616.7
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
334.7
|
|
|
—
|
|
|
—
|
|
|
334.7
|
|
||||
Foreign currency forward contracts
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
||||
Other
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
||||
Total derivative instruments
|
1,958.8
|
|
|
—
|
|
|
1,624.1
|
|
|
334.7
|
|
||||
Investments
|
1,928.8
|
|
|
1,608.7
|
|
|
—
|
|
|
320.1
|
|
||||
Total assets
|
$
|
3,887.6
|
|
|
$
|
1,608.7
|
|
|
$
|
1,624.1
|
|
|
$
|
654.8
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities - derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,981.9
|
|
|
$
|
—
|
|
|
$
|
1,981.9
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
265.3
|
|
|
—
|
|
|
—
|
|
|
265.3
|
|
||||
Foreign currency forward contracts
|
9.3
|
|
|
—
|
|
|
9.3
|
|
|
—
|
|
||||
Other
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Total liabilities
|
$
|
2,256.7
|
|
|
$
|
—
|
|
|
$
|
1,991.4
|
|
|
$
|
265.3
|
|
|
|
|
Fair value measurements at
December 31, 2014 using:
|
||||||||||||
Description
|
December 31, 2014
|
|
Quoted prices
in active
markets for
identical assets
(Level 1)
|
|
Significant
other
observable
inputs
(Level 2)
|
|
Significant
unobservable
inputs
(Level 3)
|
||||||||
|
in millions
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts
|
$
|
1,357.3
|
|
|
$
|
—
|
|
|
$
|
1,357.3
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
400.2
|
|
|
—
|
|
|
—
|
|
|
400.2
|
|
||||
Foreign currency forward contracts
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
||||
Other
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Total derivative instruments
|
1,761.4
|
|
|
—
|
|
|
1,361.2
|
|
|
400.2
|
|
||||
Investments
|
1,662.7
|
|
|
1,344.3
|
|
|
—
|
|
|
318.4
|
|
||||
Total assets
|
$
|
3,424.1
|
|
|
$
|
1,344.3
|
|
|
$
|
1,361.2
|
|
|
$
|
718.6
|
|
Liabilities - derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts
|
$
|
2,471.3
|
|
|
$
|
—
|
|
|
$
|
2,471.3
|
|
|
$
|
—
|
|
Equity-related derivative instruments
|
88.4
|
|
|
—
|
|
|
—
|
|
|
88.4
|
|
||||
Foreign currency forward contracts
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
||||
Other
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Total liabilities
|
$
|
2,560.8
|
|
|
$
|
—
|
|
|
$
|
2,472.4
|
|
|
$
|
88.4
|
|
|
Investments
|
|
Equity-related
derivative
instruments
|
|
Total
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Balance of net assets at January 1, 2015
|
$
|
318.4
|
|
|
$
|
311.8
|
|
|
$
|
630.2
|
|
Losses included in net loss (a):
|
|
|
|
|
|
|
|||||
Realized and unrealized
losses on derivative instruments, net
|
—
|
|
|
(229.7
|
)
|
|
(229.7
|
)
|
|||
Realized and unrealized
losses due to changes in fair values of certain investments, net
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|||
Foreign currency translation adjustments and other, net
|
3.2
|
|
|
(12.7
|
)
|
|
(9.5
|
)
|
|||
Balance of net assets at June 30, 2015
|
$
|
320.1
|
|
|
$
|
69.4
|
|
|
$
|
389.5
|
|
(a)
|
Most of these net losses relate to assets and liabilities that we continue to carry on our condensed consolidated balance sheet as of
June 30, 2015
.
|
|
June 30,
2015 |
|
December 31,
2014 |
||||
|
in millions
|
||||||
Distribution systems:
|
|
|
|
||||
Liberty Global Group
|
$
|
24,784.6
|
|
|
$
|
24,985.6
|
|
LiLAC Group
|
1,094.5
|
|
|
1,026.9
|
|
||
Total
|
25,879.1
|
|
|
26,012.5
|
|
||
Customer premises equipment:
|
|
|
|
||||
Liberty Global Group
|
5,643.6
|
|
|
5,437.3
|
|
||
LiLAC Group
|
809.2
|
|
|
776.6
|
|
||
Total
|
6,452.8
|
|
|
6,213.9
|
|
||
Support equipment, buildings and land:
|
|
|
|
||||
Liberty Global Group
|
4,197.8
|
|
|
3,953.3
|
|
||
LiLAC Group
|
349.1
|
|
|
345.1
|
|
||
Total
|
4,546.9
|
|
|
4,298.4
|
|
||
Total property and equipment, gross:
|
|
|
|
||||
Liberty Global Group
|
34,626.0
|
|
|
34,376.2
|
|
||
LiLAC Group
|
2,252.8
|
|
|
2,148.6
|
|
||
Total
|
36,878.8
|
|
|
36,524.8
|
|
||
Accumulated depreciation:
|
|
|
|
||||
Liberty Global Group
|
(12,761.3
|
)
|
|
(11,360.2
|
)
|
||
LiLAC Group
|
(1,356.4
|
)
|
|
(1,324.0
|
)
|
||
Total
|
(14,117.7
|
)
|
|
(12,684.2
|
)
|
||
Total property and equipment, net:
|
|
|
|
||||
Liberty Global Group
|
21,864.7
|
|
|
23,016.0
|
|
||
LiLAC Group
|
896.4
|
|
|
824.6
|
|
||
Total
|
$
|
22,761.1
|
|
|
$
|
23,840.6
|
|
|
January 1, 2015
|
|
Acquisitions
and related
adjustments
|
|
Foreign
currency
translation
adjustments
|
|
June 30,
2015 |
||||||||
|
in millions
|
||||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
9,245.1
|
|
|
$
|
0.4
|
|
|
$
|
66.2
|
|
|
$
|
9,311.7
|
|
The Netherlands
|
8,605.0
|
|
|
138.0
|
|
|
(687.9
|
)
|
|
8,055.1
|
|
||||
Germany
|
3,456.9
|
|
|
—
|
|
|
(270.6
|
)
|
|
3,186.3
|
|
||||
Belgium
|
1,978.9
|
|
|
—
|
|
|
(154.9
|
)
|
|
1,824.0
|
|
||||
Switzerland/Austria
|
3,591.9
|
|
|
—
|
|
|
122.1
|
|
|
3,714.0
|
|
||||
Total Western Europe
|
26,877.8
|
|
|
138.4
|
|
|
(925.1
|
)
|
|
26,091.1
|
|
||||
Central and Eastern Europe
|
1,302.1
|
|
|
0.5
|
|
|
(85.7
|
)
|
|
1,216.9
|
|
||||
Total European Operations Division
|
28,179.9
|
|
|
138.9
|
|
|
(1,010.8
|
)
|
|
27,308.0
|
|
||||
Corporate and other
|
34.4
|
|
|
—
|
|
|
0.1
|
|
|
34.5
|
|
||||
Total Liberty Global Group
|
28,214.3
|
|
|
138.9
|
|
|
(1,010.7
|
)
|
|
27,342.5
|
|
||||
LiLAC Group:
|
|
|
|
|
|
|
|
||||||||
LiLAC Division:
|
|
|
|
|
|
|
|
||||||||
Chile
|
440.3
|
|
|
—
|
|
|
(22.3
|
)
|
|
418.0
|
|
||||
Puerto Rico
|
226.1
|
|
|
51.5
|
|
|
—
|
|
|
277.6
|
|
||||
Total LiLAC Division
|
666.4
|
|
|
51.5
|
|
|
(22.3
|
)
|
|
695.6
|
|
||||
Corporate and other
|
120.9
|
|
|
—
|
|
|
—
|
|
|
120.9
|
|
||||
Total LiLAC Group
|
787.3
|
|
|
51.5
|
|
|
(22.3
|
)
|
|
816.5
|
|
||||
Total
|
$
|
29,001.6
|
|
|
$
|
190.4
|
|
|
$
|
(1,033.0
|
)
|
|
$
|
28,159.0
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relationships:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
$
|
11,375.4
|
|
|
$
|
(3,586.5
|
)
|
|
$
|
7,788.9
|
|
|
$
|
12,052.5
|
|
|
$
|
(3,037.0
|
)
|
|
$
|
9,015.5
|
|
LiLAC Group
|
148.8
|
|
|
(24.3
|
)
|
|
124.5
|
|
|
90.0
|
|
|
(19.3
|
)
|
|
70.7
|
|
||||||
Total
|
11,524.2
|
|
|
(3,610.8
|
)
|
|
7,913.4
|
|
|
12,142.5
|
|
|
(3,056.3
|
)
|
|
9,086.2
|
|
||||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
206.5
|
|
|
(120.5
|
)
|
|
86.0
|
|
|
234.8
|
|
|
(131.2
|
)
|
|
103.6
|
|
||||||
LiLAC Group
|
0.2
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
0.6
|
|
|
(0.6
|
)
|
|
—
|
|
||||||
Total
|
206.7
|
|
|
(120.6
|
)
|
|
86.1
|
|
|
235.4
|
|
|
(131.8
|
)
|
|
103.6
|
|
||||||
Total intangible assets subject to amortization, net:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liberty Global Group
|
11,581.9
|
|
|
(3,707.0
|
)
|
|
7,874.9
|
|
|
12,287.3
|
|
|
(3,168.2
|
)
|
|
9,119.1
|
|
||||||
LiLAC Group
|
149.0
|
|
|
(24.4
|
)
|
|
124.6
|
|
|
90.6
|
|
|
(19.9
|
)
|
|
70.7
|
|
||||||
Total
|
$
|
11,730.9
|
|
|
$
|
(3,731.4
|
)
|
|
$
|
7,999.5
|
|
|
$
|
12,377.9
|
|
|
$
|
(3,188.1
|
)
|
|
$
|
9,189.8
|
|
|
June 30, 2015
|
|
|
|
Carrying value (d)
|
|||||||||||||||||||||
Weighted
average
interest
rate (a)
|
|
Unused borrowing capacity (b)
|
|
Estimated fair value (c)
|
||||||||||||||||||||||
Borrowing currency
|
|
U.S. $
equivalent
|
|
June 30, 2015
|
|
December 31, 2014
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||
|
|
|
in millions
|
|||||||||||||||||||||||
Liberty Global Group:
|
|
|
|
|||||||||||||||||||||||
VM Notes
|
5.62
|
%
|
|
—
|
|
|
$
|
—
|
|
|
$
|
11,156.3
|
|
|
$
|
8,461.0
|
|
|
$
|
10,978.4
|
|
|
$
|
8,060.7
|
|
|
VM Credit Facility
|
3.82
|
%
|
|
£
|
675.0
|
|
|
1,061.3
|
|
|
3,331.9
|
|
|
4,734.9
|
|
|
3,330.7
|
|
|
4,804.0
|
|
|||||
VM Convertible Notes (e)
|
6.50
|
%
|
|
—
|
|
|
—
|
|
|
185.1
|
|
|
178.7
|
|
|
56.5
|
|
|
56.8
|
|
||||||
Ziggo Credit Facilities
|
3.60
|
%
|
|
€
|
450.0
|
|
|
501.9
|
|
|
5,534.5
|
|
|
4,663.0
|
|
|
5,518.7
|
|
|
4,710.8
|
|
|||||
Ziggo SPE Notes
|
4.46
|
%
|
|
—
|
|
|
—
|
|
|
1,710.3
|
|
|
—
|
|
|
1,738.3
|
|
|
—
|
|
||||||
Ziggo Notes
|
6.82
|
%
|
|
—
|
|
|
—
|
|
|
1,006.2
|
|
|
1,082.3
|
|
|
989.0
|
|
|
1,077.0
|
|
||||||
Unitymedia Notes
|
5.03
|
%
|
|
—
|
|
|
—
|
|
|
7,698.7
|
|
|
7,869.3
|
|
|
7,441.0
|
|
|
7,400.9
|
|
||||||
Unitymedia Revolving Credit Facilities
|
—
|
|
|
€
|
500.0
|
|
|
557.7
|
|
|
—
|
|
|
319.4
|
|
|
—
|
|
|
338.8
|
|
|||||
UPCB SPE Notes
|
5.81
|
%
|
|
—
|
|
|
—
|
|
|
3,171.1
|
|
|
4,279.0
|
|
|
3,157.5
|
|
|
4,009.4
|
|
||||||
UPC Broadband Holding Bank Facility
|
3.25
|
%
|
|
€
|
1,046.2
|
|
|
1,166.9
|
|
|
1,292.1
|
|
|
3,156.4
|
|
|
1,302.2
|
|
|
3,179.2
|
|
|||||
UPC Holding Senior Notes
|
6.59
|
%
|
|
—
|
|
|
—
|
|
|
1,674.0
|
|
|
2,603.6
|
|
|
1,540.6
|
|
|
2,391.6
|
|
||||||
Telenet SPE Notes
|
5.91
|
%
|
|
—
|
|
|
—
|
|
|
2,233.7
|
|
|
2,450.4
|
|
|
2,119.1
|
|
|
2,299.0
|
|
||||||
Telenet Credit Facility
|
3.41
|
%
|
|
€
|
322.9
|
|
|
360.1
|
|
|
1,510.1
|
|
|
1,633.4
|
|
|
1,510.5
|
|
|
1,638.6
|
|
|||||
Sumitomo Collar Loan
|
1.88
|
%
|
|
—
|
|
|
—
|
|
|
797.7
|
|
|
818.0
|
|
|
774.3
|
|
|
787.7
|
|
||||||
ITV Collar Loan
|
1.73
|
%
|
|
—
|
|
|
—
|
|
|
687.0
|
|
|
678.2
|
|
|
679.0
|
|
|
667.0
|
|
||||||
Vendor financing (f)
|
3.39
|
%
|
|
—
|
|
|
—
|
|
|
992.9
|
|
|
946.4
|
|
|
992.9
|
|
|
946.4
|
|
||||||
Other
|
9.34
|
%
|
|
—
|
|
|
—
|
|
|
163.0
|
|
|
171.5
|
|
|
163.0
|
|
|
171.5
|
|
||||||
Total Liberty Global Group
|
4.83
|
%
|
|
|
|
3,647.9
|
|
|
43,144.6
|
|
|
44,045.5
|
|
|
42,291.7
|
|
|
42,539.4
|
|
|||||||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
VTR Finance Senior Secured Notes
|
6.88
|
%
|
|
—
|
|
|
—
|
|
|
1,440.3
|
|
|
1,439.4
|
|
|
1,400.0
|
|
|
1,400.0
|
|
||||||
VTR Credit Facility
|
—
|
|
|
(g)
|
|
194.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Liberty Puerto Rico Bank Facility (h)
|
5.11
|
%
|
|
$
|
40.0
|
|
|
40.0
|
|
|
939.6
|
|
|
666.2
|
|
|
933.2
|
|
|
672.0
|
|
|||||
Total LiLAC Group
|
6.17
|
%
|
|
|
|
234.4
|
|
|
2,379.9
|
|
|
2,105.6
|
|
|
2,333.2
|
|
|
2,072.0
|
|
|||||||
Total third-party debt
|
4.90
|
%
|
|
|
|
$
|
3,882.3
|
|
|
$
|
45,524.5
|
|
|
$
|
46,151.1
|
|
|
$
|
44,624.9
|
|
|
$
|
44,611.4
|
|
(a)
|
Represents the weighted average interest rate in effect at
June 30, 2015
for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing. Including the effects of derivative instruments, original issue premiums or discounts and commitment fees, but excluding the impact of financing costs, our weighted average interest rate on our aggregate variable- and fixed-rate indebtedness was
5.4%
(including
5.2%
for the
Liberty Global Group
and
8.7%
for the
LiLAC Group
) at
June 30, 2015
. For information regarding our derivative instruments, see note
4
.
|
(b)
|
Unused borrowing capacity represents the maximum availability under the applicable facility at
June 30, 2015
without regard to covenant compliance calculations or other conditions precedent to borrowing. At
June 30, 2015
, based on the applicable leverage and other financial covenants, the full amount of unused borrowing capacity was available to be borrowed under each of the respective subsidiary facilities, except that the aggregate availability under (i)
Unitymedia
’s (a)
€420.0 million
(
$468.4 million
) senior secured revolving credit facility (the
UM Senior Secured Facility
) and (b)
€80.0 million
(
$89.2 million
) super senior secured revolving credit facility (together with the
UM Senior Secured Facility
, the
Unitymedia Revolving Credit Facilities
) was limited to
€481.9 million
(
$537.5 million
) and (ii) the
UPC Broadband Holding Bank Facility
was limited to
€381.0 million
(
$424.9 million
). When the relevant
June 30, 2015
compliance reporting requirements have been completed, and assuming no changes from
June 30, 2015
borrowing levels, we anticipate that (1) the full amount of unused borrowing capacity under the
Unitymedia Revolving Credit Facilities
will be available to be borrowed, (2) the availability under the
UPC Broadband Holding Bank Facility
will be limited to
€531.6 million
(
$592.9 million
) and (3) the availability under the
Ziggo Credit Facilities
will be limited to
€409.0 million
(
$456.2 million
).
In addition to these limitations, the debt instruments of our subsidiaries contain restricted payment tests that limit the amount that can be loaned or distributed to other
Liberty Global
subsidiaries and ultimately to
Liberty Global
. At
June 30, 2015
, these restrictions did not impact our ability to access the liquidity of our subsidiaries to satisfy our corporate liquidity needs beyond what is described above, except that the availability to be loaned or distributed by
Unitymedia
,
Ziggo
and
Virgin Media
was limited to
€64.4 million
(
$71.8 million
),
€225.4 million
(
$251.4 million
) and
£670.3 million
(
$1,053.9 million
), respectively. When the relevant
June 30, 2015
compliance reporting requirements have been completed and assuming no changes from
June 30, 2015
borrowing levels, we anticipate that (I) the availability to be loaned or distributed by
Unitymedia
will be limited to
€202.1 million
(
$225.4 million
), (II) the availability to be loaned or distributed by
Ziggo
will be limited to
€57.6 million
(
$64.2 million
) and (III) the full amount of unused borrowing capacity will be available to be loaned or distributed by
Virgin Media
. On July 28, 2015, the availability under the
Ziggo Credit Facilities
was increased by
€150.0 million
(
$167.3 million
). For information regarding amounts under the
Telenet Credit Facility
that are not included in our unused borrowing capacity, see
“Telenet Credit Facility”
below
.
In addition,
Telenet
entered into a financing transaction subsequent to
June 30, 2015
that could have an impact on its unused borrowing capacity. For additional information, see note
15
.
|
(c)
|
The estimated fair values of our debt instruments are determined using the average of applicable bid and ask prices (mostly Level 1 of the fair value hierarchy) or, when quoted market prices are unavailable or not considered indicative of fair value, discounted cash flow models (mostly Level 2 of the fair value hierarchy). The discount rates used in the cash flow models are based on the market interest rates and estimated credit spreads of the applicable entity, to the extent available, and other relevant factors. For additional information regarding fair value hierarchies, see note
5
.
|
(d)
|
Amounts include the impact of premiums and discounts, where applicable.
|
(e)
|
At
June 30, 2015
, the
VM Convertible Notes
were exchangeable under certain conditions for (subject to further adjustment as provided in the underlying indenture (the
VM Convertible Notes Indenture
) and subject to
Virgin Media
’s right to settle in cash or a combination of
Old Liberty Global Ordinary Shares
and cash)
13.4339
Class A
Old Liberty Global Ordinary Shares
,
33.4963
Class C
Old Liberty Global Ordinary Shares
and
$910.51
in cash (without interest) for each
$1,000
in principal amount of
VM Convertible Notes
exchanged. As a result of the
LiLAC Transaction
, the
VM Convertible Notes Indenture
was amended such that the
VM Convertible Notes
are now exchangeable for
14.0791
Class A
Liberty Global Ordinary Shares
,
35.1665
Class C
Liberty Global Ordinary Shares
and
$910.51
in cash (without interest) for each
$1,000
in principal amount of
VM Convertible Notes
exchanged.
|
(f)
|
Represents amounts owed pursuant to interest-bearing vendor financing arrangements that are used to finance certain of our property and equipment additions. These obligations are generally due within
one year
. At
June 30, 2015
and
December 31, 2014
, the amounts owed pursuant to these arrangements include
$110.6 million
and
$101.7 million
, respectively, of
VAT
that was paid on our behalf by the vendor. Repayments of vendor financing obligations are included in repayments and repurchases of debt and capital lease obligations in our condensed consolidated statements of cash flows.
|
(g)
|
Unused borrowing capacity relates to the senior secured revolving credit facility of entities within
VTR
, which includes a
$160.0 million
U.S. dollar facility (the
VTR Dollar Credit Facility
) and a CLP
22.0 billion
(
$34.4 million
) Chilean peso facility (the
VTR CLP Credit Facility
),
each of which were undrawn at
June 30, 2015
. The
VTR Dollar Credit Facility
and the
VTR CLP Credit Facility
have fees on unused commitments of
1.1%
and
1.34%
per year, respectively.
|
(h)
|
In June 2015, we increased the principal amount outstanding under the
Liberty Puerto Rico Bank Facility
by
$267.5 million
(
$261.1 million
carrying value after deducting the applicable discount). Substantially all of the net proceeds from this borrowing were used to fund a portion of the purchase price for the
Choice Acquisition
. For additional information regarding the
Choice Acquisition
, see note
3
.
|
|
|
June 30, 2015
|
|
December 31, 2014
|
|||||||||||||
|
|
in millions
|
|||||||||||||||
Liberty Global Group:
|
|
|
|
|
|||||||||||||
Unitymedia
|
|
$
|
734.4
|
|
|
$
|
810.1
|
|
|||||||||
Telenet
|
|
383.8
|
|
|
413.4
|
|
|||||||||||
Virgin Media
|
|
215.6
|
|
|
255.3
|
|
|||||||||||
Other subsidiaries
|
|
94.1
|
|
|
67.3
|
|
|||||||||||
Total Liberty Global Group capital lease obligations
|
|
1,427.9
|
|
|
1,546.1
|
|
|||||||||||
LiLAC Group:
|
|
|
|
|
|||||||||||||
Liberty Puerto Rico
|
|
0.8
|
|
|
1.0
|
|
|||||||||||
VTR
|
|
0.4
|
|
|
0.5
|
|
|||||||||||
Total LiLAC Group capital lease obligations
|
|
1.2
|
|
|
1.5
|
|
|||||||||||
Total capital lease obligations
|
|
$
|
1,429.1
|
|
|
$
|
1,547.6
|
|
|
|
|
|
|
|
Outstanding principal
amount |
|
|
|
|
||||||||||
VM Notes
|
|
Maturity
|
|
Interest
rate |
|
Borrowing
currency |
|
U.S. $
equivalent |
|
Estimated
fair value |
|
Carrying
value (a) |
||||||||
|
|
|
|
|
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2022 VM Senior Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2022 VM 4.875% Dollar Senior Notes
|
February 15, 2022
|
|
4.875%
|
|
$
|
118.7
|
|
|
$
|
118.7
|
|
|
$
|
112.1
|
|
|
$
|
119.5
|
|
|
2022 VM 5.25% Dollar Senior Notes
|
February 15, 2022
|
|
5.250%
|
|
$
|
95.0
|
|
|
95.0
|
|
|
90.2
|
|
|
95.7
|
|
||||
2022 VM Sterling Senior Notes
|
February 15, 2022
|
|
5.125%
|
|
£
|
44.1
|
|
|
69.3
|
|
|
69.5
|
|
|
70.0
|
|
||||
2023 VM Senior Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2023 VM Dollar Senior Notes
|
April 15, 2023
|
|
6.375%
|
|
$
|
530.0
|
|
|
530.0
|
|
|
549.2
|
|
|
530.0
|
|
||||
2023 VM Sterling Senior Notes
|
April 15, 2023
|
|
7.000%
|
|
£
|
250.0
|
|
|
393.1
|
|
|
420.4
|
|
|
393.1
|
|
||||
2024 VM Senior Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2024 VM Dollar Senior Notes
|
October 15, 2024
|
|
6.000%
|
|
$
|
500.0
|
|
|
500.0
|
|
|
508.4
|
|
|
500.0
|
|
||||
2024 VM Sterling Senior Notes
|
October 15, 2024
|
|
6.375%
|
|
£
|
300.0
|
|
|
471.7
|
|
|
492.7
|
|
|
471.7
|
|
||||
2025 VM Senior Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2025 VM Euro Senior Notes
|
January 15, 2025
|
|
4.500%
|
|
€
|
460.0
|
|
|
513.1
|
|
|
511.4
|
|
|
513.1
|
|
||||
2025 VM Dollar Senior Notes
|
January 15, 2025
|
|
5.750%
|
|
$
|
400.0
|
|
|
400.0
|
|
|
404.3
|
|
|
400.0
|
|
||||
January 2021 VM Senior Secured Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
January 2021 VM Sterling Senior Secured Notes
|
January 15, 2021
|
|
5.500%
|
|
£
|
628.4
|
|
|
988.1
|
|
|
1,052.4
|
|
|
1,000.3
|
|
||||
January 2021 VM Dollar Senior Secured Notes
|
January 15, 2021
|
|
5.250%
|
|
$
|
447.9
|
|
|
447.9
|
|
|
471.9
|
|
|
459.1
|
|
||||
April 2021 VM Senior Secured Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
April 2021 VM Sterling Senior Secured Notes
|
April 15, 2021
|
|
6.000%
|
|
£
|
990.0
|
|
|
1,556.7
|
|
|
1,626.8
|
|
|
1,556.7
|
|
||||
April 2021 VM Dollar Senior Secured Notes
|
April 15, 2021
|
|
5.375%
|
|
$
|
900.0
|
|
|
900.0
|
|
|
921.4
|
|
|
900.0
|
|
||||
2025 VM Senior Secured Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2025 VM 5.5% Sterling Senior Secured Notes
|
January 15, 2025
|
|
5.500%
|
|
£
|
387.0
|
|
|
608.5
|
|
|
613.5
|
|
|
608.5
|
|
||||
2025 VM Dollar Senior Secured Notes
|
January 15, 2025
|
|
5.500%
|
|
$
|
425.0
|
|
|
425.0
|
|
|
427.1
|
|
|
425.0
|
|
||||
2025 VM 5.125% Sterling Senior Secured Notes
|
January 15, 2025
|
|
5.125%
|
|
£
|
300.0
|
|
|
471.7
|
|
|
466.7
|
|
|
471.7
|
|
||||
2026 VM Senior Secured Notes
|
January 15, 2026
|
|
5.250%
|
|
$
|
1,000.0
|
|
|
1,000.0
|
|
|
968.1
|
|
|
1,004.9
|
|
||||
2027 VM Senior Secured Notes
|
January 15, 2027
|
|
4.875%
|
|
£
|
525.0
|
|
|
825.5
|
|
|
797.2
|
|
|
825.5
|
|
||||
2029 VM Senior Secured Notes
|
March 28, 2029
|
|
6.250%
|
|
£
|
400.0
|
|
|
628.9
|
|
|
653.0
|
|
|
633.6
|
|
||||
Total
|
|
$
|
10,943.2
|
|
|
$
|
11,156.3
|
|
|
$
|
10,978.4
|
|
(a)
|
Amounts include the impact of premiums, where applicable, including amounts recorded in connection with the acquisition accounting for
Virgin Media
.
|
|
|
Redemption price
|
||
Year
|
|
2026 VM Senior Secured Notes
|
|
2027 VM Senior Secured Notes
|
|
|
|
|
|
2020
|
102.625%
|
|
N.A.
|
|
2021
|
101.313%
|
|
102.438%
|
|
2022
|
100.656%
|
|
101.219%
|
|
2023
|
100.000%
|
|
100.609%
|
|
2024 and thereafter
|
100.000%
|
|
100.000%
|
Facility
|
|
Maturity
|
|
Interest rate
|
|
Facility amount
(in borrowing
currency)
|
|
Unused
borrowing
capacity
|
|
Carrying
value (a)
|
||||||
|
|
|
|
|
|
in millions
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
D
|
June 30, 2022
|
|
LIBOR + 3.25% (b)
|
|
£
|
100.0
|
|
|
$
|
—
|
|
|
$
|
156.9
|
|
|
E
|
June 30, 2023
|
|
LIBOR + 3.50% (b)
|
|
£
|
849.4
|
|
|
—
|
|
|
1,332.6
|
|
|||
F
|
June 20, 2023
|
|
LIBOR + 2.75% (b)
|
|
$
|
1,855.0
|
|
|
—
|
|
|
1,841.2
|
|
|||
Revolving Facility (c)
|
December 31, 2021
|
|
LIBOR + 2.75%
|
|
£
|
675.0
|
|
|
1,061.3
|
|
|
—
|
|
|||
Total
|
|
$
|
1,061.3
|
|
|
$
|
3,330.7
|
|
(a)
|
The carrying values of VM Facilities D, E and F include the impact of discounts.
|
(b)
|
VM Facilities D, E and F each have a LIBOR floor of
0.75%
.
|
(c)
|
The
Revolving Facility
has a fee on unused commitments of
1.1%
per year.
|
Facility
|
|
Maturity
|
|
Interest rate
|
|
Facility amount
(in borrowing
currency)
|
|
Unused
borrowing
capacity (a)
|
|
Carrying
value (b)
|
||||||
|
|
|
|
|
|
in millions
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Ziggo Dollar Facility
|
January 15, 2022
|
|
LIBOR + 2.75% (c)
|
|
$
|
2,350.0
|
|
|
$
|
—
|
|
|
$
|
2,317.5
|
|
|
Ziggo Euro Facility
|
January 15, 2022
|
|
EURIBOR + 3.00% (d)
|
|
€
|
2,000.0
|
|
|
—
|
|
|
2,209.5
|
|
|||
Senior Secured Proceeds Loan (e)
|
January 15, 2025
|
|
3.750%
|
|
€
|
800.0
|
|
|
—
|
|
|
892.2
|
|
|||
Euro Senior Proceeds Loan (e)
|
January 15, 2025
|
|
4.625%
|
|
€
|
400.0
|
|
|
—
|
|
|
446.1
|
|
|||
Dollar Senior Proceeds Loan (e)
|
January 15, 2025
|
|
5.875%
|
|
$
|
400.0
|
|
|
—
|
|
|
400.0
|
|
|||
New Ziggo Credit Facility
|
March 31, 2021
|
|
EURIBOR + 3.75%
|
|
€
|
689.2
|
|
|
—
|
|
|
768.6
|
|
|||
Ziggo Revolving Facilities
|
June 30, 2020
|
|
(f)
|
|
€
|
650.0
|
|
|
501.9
|
|
|
223.1
|
|
|||
Elimination of the Proceeds Loans in consolidation (e)
|
|
—
|
|
|
(1,738.3
|
)
|
||||||||||
Total
|
|
$
|
501.9
|
|
|
$
|
5,518.7
|
|
(a)
|
When the relevant
June 30, 2015
compliance reporting requirements have been completed and assuming no changes from the
June 30, 2015
borrowing levels, we anticipate that our availability under the
Ziggo Credit Facilities
will be limited to
€409.0 million
(
$456.2 million
).
|
(b)
|
The carrying values of the
Ziggo Euro Facility
and the
Ziggo Dollar Facility
include the impact of discounts.
|
(c)
|
The
Ziggo Dollar Facility
has a LIBOR floor of
0.75%
.
|
(d)
|
The
Ziggo Euro Facility
has a EURIBOR floor of
0.75%
.
|
(e)
|
Amounts relate to certain senior and senior secured notes (the
Ziggo SPE Notes
) issued by special purpose financing entities (the
Ziggo SPE
s
) that are consolidated by
Ziggo Group Holding
and
Liberty Global
. The proceeds from the
Ziggo SPE Notes
were used to fund the
Senior Secured Proceeds Loan
, the
Euro Senior Proceeds Loan
and the
Dollar Senior Proceeds Loan
(together the
Proceeds Loans
), with certain subsidiaries of
Ziggo Group Holding
as the borrowers. Accordingly, the amounts outstanding under the
Proceeds Loans
are eliminated in our condensed consolidated financial statements.
|
(f)
|
The
Ziggo Revolving Facilities
include (i) a
€600.0 million
(
$669.2 million
) facility that bears interest at EURIBOR plus a margin of
2.75%
and has a fee on unused commitments of
1.1%
per year and (ii) a
€50.0 million
(
$55.8 million
) facility that bears interest at EURIBOR plus a margin of
2.0%
and has a fee on unused commitments of
0.8%
per year. On July 28, 2015, the commitments under the
€600.0 million
(
$669.2 million
) facility were increased by
€150.0 million
(
$167.3 million
).
|
|
|
|
|
|
|
Outstanding principal
amount
|
|
|
|
|
|||||||||||
Unitymedia Notes
|
|
Maturity
|
|
Interest
rate
|
|
Borrowing
currency
|
|
U.S. $
equivalent
|
|
Estimated
fair value
|
|
Carrying
value
|
|||||||||
|
|
|
|
|
|
in millions
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
September 2012 UM Senior Secured Notes
|
September 15, 2022
|
|
5.500
|
%
|
|
€
|
585.0
|
|
|
$
|
652.4
|
|
|
$
|
696.9
|
|
|
$
|
652.4
|
|
|
December 2012 UM Dollar Senior Secured Notes
|
January 15, 2023
|
|
5.500
|
%
|
|
$
|
1,000.0
|
|
|
1,000.0
|
|
|
1,019.4
|
|
|
1,000.0
|
|
||||
December 2012 UM Euro Senior Secured Notes
|
January 15, 2023
|
|
5.750
|
%
|
|
€
|
450.0
|
|
|
501.9
|
|
|
542.0
|
|
|
501.9
|
|
||||
January 2013 UM Senior Secured Notes
|
January 21, 2023
|
|
5.125
|
%
|
|
€
|
450.0
|
|
|
501.9
|
|
|
531.7
|
|
|
501.9
|
|
||||
April 2013 UM Senior Secured Notes
|
April 15, 2023
|
|
5.625
|
%
|
|
€
|
315.0
|
|
|
351.3
|
|
|
379.6
|
|
|
351.3
|
|
||||
November 2013 UM Senior Secured Notes
|
January 15, 2029
|
|
6.250
|
%
|
|
€
|
475.0
|
|
|
529.8
|
|
|
597.6
|
|
|
529.8
|
|
||||
October 2014 UM Senior Notes
|
January 15, 2025
|
|
6.125
|
%
|
|
$
|
900.0
|
|
|
900.0
|
|
|
940.5
|
|
|
900.0
|
|
||||
December 2014 UM Euro Senior Secured Notes
|
January 15, 2025
|
|
4.000
|
%
|
|
€
|
1,000.0
|
|
|
1,115.3
|
|
|
1,141.1
|
|
|
1,115.3
|
|
||||
December 2014 UM Dollar Senior Secured Notes
|
January 15, 2025
|
|
5.000
|
%
|
|
$
|
550.0
|
|
|
550.0
|
|
|
546.6
|
|
|
550.0
|
|
||||
March 2015 UM Senior Notes
|
January 15, 2027
|
|
3.750
|
%
|
|
€
|
700.0
|
|
|
780.7
|
|
|
756.8
|
|
|
780.7
|
|
||||
March 2015 UM Senior Secured Notes
|
January 15, 2027
|
|
3.500
|
%
|
|
€
|
500.0
|
|
|
557.7
|
|
|
546.5
|
|
|
557.7
|
|
||||
Total
|
|
$
|
7,441.0
|
|
|
$
|
7,698.7
|
|
|
$
|
7,441.0
|
|
Year
|
|
Redemption price
|
||
|
|
March 2015 UM Senior Secured Notes
|
|
March 2015 UM Senior Notes
|
2021
|
101.750%
|
|
101.875%
|
|
2022
|
100.875%
|
|
100.938%
|
|
2023
|
100.438%
|
|
100.469%
|
|
2024 and thereafter
|
100.000%
|
|
100.000%
|
Facility
|
|
Maturity
|
|
Interest rate
|
|
Facility amount
(in borrowing
currency) (a)
|
|
Unused
borrowing
capacity (b)
|
|
Carrying
value
|
||||||
|
|
|
|
|
|
in millions
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
AC (c)
|
November 15, 2021
|
|
7.250%
|
|
$
|
675.0
|
|
|
$
|
—
|
|
|
$
|
675.0
|
|
|
AD (c)
|
January 15, 2022
|
|
6.875%
|
|
$
|
675.0
|
|
|
—
|
|
|
675.0
|
|
|||
AH (d)
|
June 30, 2021
|
|
LIBOR + 2.50% (e)
|
|
$
|
1,305.0
|
|
|
—
|
|
|
1,302.2
|
|
|||
AI
|
April 30, 2019
|
|
EURIBOR + 3.25%
|
|
€
|
1,046.2
|
|
|
1,166.9
|
|
|
—
|
|
|||
AK (c)
|
January 15, 2027
|
|
4.000%
|
|
€
|
600.0
|
|
|
—
|
|
|
669.2
|
|
|||
AL (c)
|
January 15, 2025
|
|
5.375%
|
|
$
|
1,140.0
|
|
|
—
|
|
|
1,140.0
|
|
|||
Elimination of Facilities AC, AD, AK and AL in consolidation (c)
|
|
—
|
|
|
(3,159.2
|
)
|
||||||||||
Total
|
|
$
|
1,166.9
|
|
|
$
|
1,302.2
|
|
(a)
|
Except as described in (c) below, amounts represent total third-party facility amounts at
June 30, 2015
without giving effect to the impact of discounts.
|
(b)
|
At
June 30, 2015
, our availability under the
UPC Broadband Holding Bank Facility
was limited to
€381.0 million
(
$424.9 million
). When the relevant
June 30, 2015
compliance reporting requirements have been completed and assuming no changes from the
June 30, 2015
borrowing levels, we anticipate that our availability under the
UPC Broadband Holding Bank Facility
will be limited to
€531.6 million
(
$592.9 million
).
Facility AI has a fee on unused commitments of
1.3%
per year.
|
(c)
|
Amounts relate to certain senior secured notes (the
UPCB SPE Notes
) issued by special purpose financing entities (the
UPCB SPE
s
) that are consolidated by
UPC Holding
and
Liberty Global
. The proceeds from the
UPCB SPE Notes
were used to fund additional Facilities AC, AD, AK and AL with our wholly-owned subsidiary UPC Financing Partnership (
UPC Financing
) as the borrower. Accordingly, the amounts outstanding under Facilities AC, AD, AK and AL are eliminated in our condensed consolidated financial statements.
|
(d)
|
The carrying value of Facility AH includes the impact of a discount.
|
(e)
|
Facility AH has a
LIBOR
floor of
0.75%
.
|
(a)
|
The carrying value of the
UPC Holding 6.375% Senior Notes
includes the impact of a discount.
|
|
|
|
|
|
|
Outstanding principal
amount
|
|
|
|
|
||||||||||
UPCB SPEs
|
|
Maturity
|
|
Interest rate
|
|
Borrowing
currency
|
|
U.S. $
equivalent
|
|
Estimated
fair value
|
|
Carrying
value
|
||||||||
|
|
|
|
|
|
in millions
|
||||||||||||||
UPCB Finance IV Dollar Notes (a)
|
January 15, 2025
|
|
5.375%
|
|
$
|
1,140.0
|
|
|
$
|
1,140.0
|
|
|
$
|
1,090.8
|
|
|
$
|
1,138.3
|
|
|
UPCB Finance IV Euro Notes
|
January 15, 2027
|
|
4.000%
|
|
€
|
600.0
|
|
|
669.2
|
|
|
632.0
|
|
|
669.2
|
|
||||
UPCB Finance V Notes
|
November 15, 2021
|
|
7.250%
|
|
$
|
675.0
|
|
|
675.0
|
|
|
726.5
|
|
|
675.0
|
|
||||
UPCB Finance VI Notes
|
January 15, 2022
|
|
6.875%
|
|
$
|
675.0
|
|
|
675.0
|
|
|
721.8
|
|
|
675.0
|
|
||||
Total
|
|
$
|
3,159.2
|
|
|
$
|
3,171.1
|
|
|
$
|
3,157.5
|
|
(a)
|
The carrying value includes the impact of a discount related to the
Additional UPCB Finance IV Dollar Notes
, as defined and described below.
|
|
|
Redemption price
|
||
Year
|
|
UPCB Finance IV Dollar Notes
|
|
UPCB Finance IV Euro Notes
|
|
|
|
|
|
2020
|
102.688%
|
|
N.A.
|
|
2021
|
101.792%
|
|
102.000%
|
|
2022
|
100.896%
|
|
101.000%
|
|
2023
|
100.000%
|
|
100.500%
|
|
2024 and thereafter
|
100.000%
|
|
100.000%
|
Facility
|
|
Maturity
|
|
Interest rate
|
|
Facility amount
(in borrowing
currency) (a)
|
|
Unused
borrowing
capacity (b)
|
|
Carrying
value
|
||||||
|
|
|
|
|
|
in millions
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
M (c)
|
November 15, 2020
|
|
6.375%
|
|
€
|
500.0
|
|
|
$
|
—
|
|
|
$
|
557.7
|
|
|
O (c)
|
February 15, 2021
|
|
6.625%
|
|
€
|
300.0
|
|
|
—
|
|
|
334.6
|
|
|||
P (c)
|
June 15, 2021
|
|
EURIBOR + 3.875%
|
|
€
|
400.0
|
|
|
—
|
|
|
446.1
|
|
|||
S (d)
|
December 31, 2016
|
|
EURIBOR + 2.75%
|
|
€
|
36.9
|
|
|
41.1
|
|
|
—
|
|
|||
U (c)
|
August 15, 2022
|
|
6.250%
|
|
€
|
450.0
|
|
|
—
|
|
|
501.9
|
|
|||
V (c)
|
August 15, 2024
|
|
6.750%
|
|
€
|
250.0
|
|
|
—
|
|
|
278.8
|
|
|||
W (e)
|
June 30, 2022
|
|
EURIBOR + 3.25%
|
|
€
|
474.1
|
|
|
—
|
|
|
527.7
|
|
|||
X (d)
|
September 30, 2020
|
|
EURIBOR + 2.75%
|
|
€
|
286.0
|
|
|
319.0
|
|
|
—
|
|
|||
Y (e)
|
June 30, 2023
|
|
EURIBOR + 3.50%
|
|
€
|
882.9
|
|
|
—
|
|
|
982.8
|
|
|||
Z
|
June 30, 2018
|
|
EURIBOR + 2.25%
|
|
€
|
200.0
|
|
|
(f)
|
|
—
|
|
||||
AA
|
June 30, 2023
|
|
EURIBOR + 3.50%
|
|
€
|
800.0
|
|
|
(f)
|
|
—
|
|
||||
Elimination of Telenet Facilities M, O, P, U and V in consolidation (c)
|
|
—
|
|
|
(2,119.1
|
)
|
||||||||||
Total
|
|
$
|
360.1
|
|
|
$
|
1,510.5
|
|
(a)
|
Except as described in (c) below, amounts represent total third-party facility amounts at
June 30, 2015
.
|
(b)
|
Telenet Facilities S and X each have a fee on unused commitments of
1.1%
per year.
Telenet Facility Z
has a fee on unused commitments of
0.8%
per year.
|
(c)
|
Amounts relate to certain senior secured notes (the
Telenet SPE Notes
) issued by special purpose financing entities (the
Telenet SPE
s
) that are consolidated by
Telenet International
and its parent entities, including
Telenet
and
Liberty Global
. The proceeds from the
Telenet SPE Notes
were used to fund additional
Telenet
Facilities M, O, P, U and V, with
Telenet International
as the borrower. Accordingly, the amounts outstanding under
Telenet
Facilities M, O, P, U and V are eliminated in our condensed consolidated financial statements.
|
(d)
|
On July 1, 2015, (i) the revolving credit facility under the
Telenet Credit Facility
was increased by
€85.0 million
(
$94.8 million
) (
Telenet Facility X2
) and (ii) a lender under the existing
Telenet Facility S
under the
Telenet Credit Facility
agreed to novate commitments of
€10.0 million
(
$11.2 million
) to a subsidiary of
Telenet
and enter into the new
Telenet Facility X2
, resulting in a total increased availability under the revolving credit facility of
€95.0 million
(
$106.0 million
).
Telenet Facility X2
has the same terms as
Telenet Facility X
.
|
(e)
|
The carrying values of Telenet Facilities W and Y include the impact of discounts.
|
(f)
|
On May 7, 2015,
Telenet International
entered into a new revolving credit facility (
Telenet Facility Z
) and a new term loan (
Telenet Facility AA
), each under the
Telenet Credit Facility
. At
June 30, 2015
,
Telenet Facility Z
and
Telenet Facility AA
were undrawn. We expect the proceeds from
Telenet Facility Z
and
Telenet Facility AA
to be used to fund a portion of the purchase price of the pending acquisition of
BASE
. Although
Telenet
currently has the ability, subject to certain restrictions and covenant limitations, to draw certain amounts under
Telenet Facility Z
and
Telenet Facility AA
for general corporate purposes, we expect that these facilities will remain undrawn until the closing of the acquisition of
BASE
. Accordingly,
Telenet
’s unused borrowing capacity at
June 30, 2015
excludes the availability under
Telenet Facility Z
and
Telenet Facility AA
.
|
|
Liberty Global Group
|
|
LiLAC Group
|
|
|
||||||||||||||||||||||||||||||||||||||
|
Virgin Media
|
|
Ziggo Group Holding (a)
|
|
Unitymedia
|
|
UPC
Holding (b)
|
|
Telenet (c)
|
|
Other
|
|
Total Liberty Global Group
|
|
VTR
|
|
Liberty Puerto Rico
|
|
Total LiLAC Group
|
|
Total
|
||||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||||||||||||||
Year ending December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
2015 (remainder of year)
|
$
|
90.4
|
|
|
$
|
245.9
|
|
|
$
|
83.1
|
|
|
$
|
262.9
|
|
|
$
|
8.3
|
|
|
$
|
20.3
|
|
|
$
|
710.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
710.9
|
|
2016
|
191.8
|
|
|
0.4
|
|
|
57.7
|
|
|
296.5
|
|
|
8.3
|
|
|
368.6
|
|
|
923.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
923.3
|
|
|||||||||||
2017
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
|
908.5
|
|
|
916.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
916.8
|
|
|||||||||||
2018
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
|
236.8
|
|
|
245.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
245.1
|
|
|||||||||||
2019
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.9
|
|
|
—
|
|
|
18.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.9
|
|
|||||||||||
2020
|
—
|
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
570.1
|
|
|
—
|
|
|
650.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
650.1
|
|
|||||||||||
Thereafter
|
14,291.2
|
|
|
7,916.3
|
|
|
7,441.0
|
|
|
6,009.5
|
|
|
3,158.0
|
|
|
0.2
|
|
|
38,816.2
|
|
|
1,400.0
|
|
|
942.5
|
|
|
2,342.5
|
|
|
41,158.7
|
|
|||||||||||
Total debt maturities
|
14,573.4
|
|
|
8,242.6
|
|
|
7,581.8
|
|
|
6,568.9
|
|
|
3,780.2
|
|
|
1,534.4
|
|
|
42,281.3
|
|
|
1,400.0
|
|
|
942.5
|
|
|
2,342.5
|
|
|
44,623.8
|
|
|||||||||||
Unamortized premium (discount)
|
19.6
|
|
|
26.7
|
|
|
—
|
|
|
(9.2
|
)
|
|
(2.9
|
)
|
|
(23.8
|
)
|
|
10.4
|
|
|
—
|
|
|
(9.3
|
)
|
|
(9.3
|
)
|
|
1.1
|
|
|||||||||||
Total debt
|
$
|
14,593.0
|
|
|
$
|
8,269.3
|
|
|
$
|
7,581.8
|
|
|
$
|
6,559.7
|
|
|
$
|
3,777.3
|
|
|
$
|
1,510.6
|
|
|
$
|
42,291.7
|
|
|
$
|
1,400.0
|
|
|
$
|
933.2
|
|
|
$
|
2,333.2
|
|
|
$
|
44,624.9
|
|
Current portion (d)
|
$
|
283.9
|
|
|
$
|
245.9
|
|
|
$
|
140.8
|
|
|
$
|
559.4
|
|
|
$
|
8.3
|
|
|
$
|
198.2
|
|
|
$
|
1,436.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,436.5
|
|
Noncurrent portion
|
$
|
14,309.1
|
|
|
$
|
8,023.4
|
|
|
$
|
7,441.0
|
|
|
$
|
6,000.3
|
|
|
$
|
3,769.0
|
|
|
$
|
1,312.4
|
|
|
$
|
40,855.2
|
|
|
$
|
1,400.0
|
|
|
$
|
933.2
|
|
|
$
|
2,333.2
|
|
|
$
|
43,188.4
|
|
(a)
|
Amounts include the
Ziggo SPE Notes
issued by the
Ziggo SPE
s. As described above, the
Ziggo SPE
s are consolidated by
Ziggo Group Holding
.
|
(b)
|
Amounts include the
UPCB SPE Notes
issued by the
UPCB SPE
s. As described above, the
UPCB SPE
s are consolidated by
UPC Holding
.
|
(c)
|
Amounts include the
Telenet SPE Notes
issued by the
Telenet SPE
s. As described above, the
Telenet SPE
s are consolidated by
Telenet
.
|
(d)
|
The outstanding principal amounts of our subsidiaries’ revolving credit facilities are included in our current debt maturities.
|
|
Liberty Global Group
|
|
|
|
|
||||||||||||||||||||||
|
Unitymedia
|
|
Telenet
|
|
Virgin Media
|
|
Other
|
|
Total Liberty Global Group
|
|
Total LiLAC Group
|
|
Total
|
||||||||||||||
|
in millions
|
||||||||||||||||||||||||||
Year ending December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2015 (remainder of year)
|
$
|
40.8
|
|
|
$
|
38.0
|
|
|
$
|
59.9
|
|
|
$
|
12.5
|
|
|
$
|
151.2
|
|
|
$
|
0.6
|
|
|
$
|
151.8
|
|
2016
|
81.8
|
|
|
61.0
|
|
|
75.8
|
|
|
23.1
|
|
|
241.7
|
|
|
0.4
|
|
|
242.1
|
|
|||||||
2017
|
81.8
|
|
|
59.5
|
|
|
35.8
|
|
|
17.3
|
|
|
194.4
|
|
|
0.3
|
|
|
194.7
|
|
|||||||
2018
|
81.8
|
|
|
57.4
|
|
|
11.1
|
|
|
10.8
|
|
|
161.1
|
|
|
—
|
|
|
161.1
|
|
|||||||
2019
|
81.8
|
|
|
47.7
|
|
|
5.6
|
|
|
7.0
|
|
|
142.1
|
|
|
—
|
|
|
142.1
|
|
|||||||
2020
|
81.8
|
|
|
45.0
|
|
|
4.5
|
|
|
5.7
|
|
|
137.0
|
|
|
—
|
|
|
137.0
|
|
|||||||
Thereafter
|
808.4
|
|
|
206.8
|
|
|
219.7
|
|
|
44.1
|
|
|
1,279.0
|
|
|
—
|
|
|
1,279.0
|
|
|||||||
Total principal and interest payments
|
1,258.2
|
|
|
515.4
|
|
|
412.4
|
|
|
120.5
|
|
|
2,306.5
|
|
|
1.3
|
|
|
2,307.8
|
|
|||||||
Amounts representing interest
|
(523.8
|
)
|
|
(131.6
|
)
|
|
(196.8
|
)
|
|
(26.4
|
)
|
|
(878.6
|
)
|
|
(0.1
|
)
|
|
(878.7
|
)
|
|||||||
Present value of net minimum lease payments
|
$
|
734.4
|
|
|
$
|
383.8
|
|
|
$
|
215.6
|
|
|
$
|
94.1
|
|
|
$
|
1,427.9
|
|
|
$
|
1.2
|
|
|
$
|
1,429.1
|
|
Current portion
|
$
|
26.0
|
|
|
$
|
39.1
|
|
|
$
|
92.0
|
|
|
$
|
19.4
|
|
|
$
|
176.5
|
|
|
$
|
0.9
|
|
|
$
|
177.4
|
|
Noncurrent portion
|
$
|
708.4
|
|
|
$
|
344.7
|
|
|
$
|
123.6
|
|
|
$
|
74.7
|
|
|
$
|
1,251.4
|
|
|
$
|
0.3
|
|
|
$
|
1,251.7
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Computed “expected” tax benefit (a)
|
$
|
56.0
|
|
|
$
|
49.3
|
|
|
$
|
175.9
|
|
|
$
|
162.0
|
|
Change in valuation allowances (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(160.3
|
)
|
|
(193.5
|
)
|
|
(386.3
|
)
|
|
(248.7
|
)
|
||||
Increase
|
42.8
|
|
|
101.3
|
|
|
43.8
|
|
|
106.2
|
|
||||
International rate differences (b) (c):
|
|
|
|
|
|
|
|
||||||||
Increase
|
31.4
|
|
|
57.0
|
|
|
125.3
|
|
|
116.5
|
|
||||
Decrease
|
(21.0
|
)
|
|
(8.3
|
)
|
|
(34.5
|
)
|
|
(13.8
|
)
|
||||
Tax effect of intercompany financing
|
38.5
|
|
|
41.0
|
|
|
76.7
|
|
|
81.5
|
|
||||
Non-deductible or non-taxable foreign currency exchange results (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(21.2
|
)
|
|
(16.5
|
)
|
|
(29.9
|
)
|
|
(23.9
|
)
|
||||
Increase
|
(67.3
|
)
|
|
(1.5
|
)
|
|
2.2
|
|
|
0.6
|
|
||||
Non-deductible or non-taxable interest and other expenses (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(15.3
|
)
|
|
(53.2
|
)
|
|
(49.0
|
)
|
|
(84.2
|
)
|
||||
Increase
|
12.1
|
|
|
16.1
|
|
|
23.3
|
|
|
31.1
|
|
||||
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(26.7
|
)
|
|
3.7
|
|
|
(27.7
|
)
|
|
(45.9
|
)
|
||||
Increase
|
(2.7
|
)
|
|
3.8
|
|
|
11.8
|
|
|
4.3
|
|
||||
Recognition of previously unrecognized tax benefits
|
4.7
|
|
|
—
|
|
|
13.6
|
|
|
28.8
|
|
||||
Tax benefit associated with technology innovation
|
6.6
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
||||
Other, net
|
(7.6
|
)
|
|
1.4
|
|
|
(7.8
|
)
|
|
3.1
|
|
||||
Total income tax benefit (expense)
|
$
|
(130.0
|
)
|
|
$
|
0.6
|
|
|
$
|
(52.1
|
)
|
|
$
|
117.6
|
|
(a)
|
The statutory or “expected” tax rates are the
U.K.
rates of
20.0%
for the 2015 periods and
21.0%
for 2014 periods.
|
(b)
|
Country jurisdictions giving rise to increases within the
six
-month period are grouped together and shown separately from country jurisdictions giving rise to decreases within the
six
-month period.
|
(c)
|
Amounts reflect adjustments (either an increase or a decrease) to “expected” tax benefit for statutory rates in jurisdictions in which we operate outside of the
U.K.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Old Liberty Global Ordinary Shares:
|
|
|
|
|
|
|
|
||||||||
Performance-based incentive awards (a)
|
$
|
28.5
|
|
|
$
|
23.2
|
|
|
$
|
70.6
|
|
|
$
|
43.8
|
|
Other share-based incentive awards
|
25.1
|
|
|
22.2
|
|
|
50.5
|
|
|
52.4
|
|
||||
Total Old Liberty Global Ordinary Shares
|
53.6
|
|
|
45.4
|
|
|
121.1
|
|
|
96.2
|
|
||||
Telenet share-based incentive awards
|
2.4
|
|
|
7.8
|
|
|
5.6
|
|
|
10.7
|
|
||||
Other
|
0.6
|
|
|
1.2
|
|
|
1.3
|
|
|
2.6
|
|
||||
Total
|
$
|
56.6
|
|
|
$
|
54.4
|
|
|
$
|
128.0
|
|
|
$
|
109.5
|
|
Included in:
|
|
|
|
|
|
|
|
||||||||
Operating expense:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
1.1
|
|
|
$
|
3.2
|
|
|
$
|
1.8
|
|
|
$
|
4.0
|
|
LiLAC Group
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
|
0.9
|
|
||||
Total operating expense
|
1.4
|
|
|
3.6
|
|
|
2.1
|
|
|
4.9
|
|
||||
SG&A expense:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
53.9
|
|
|
49.3
|
|
|
125.7
|
|
|
101.4
|
|
||||
LiLAC Group (b)
|
1.3
|
|
|
1.5
|
|
|
0.2
|
|
|
3.2
|
|
||||
Total SG&A expense
|
55.2
|
|
|
50.8
|
|
|
125.9
|
|
|
104.6
|
|
||||
Total
|
$
|
56.6
|
|
|
$
|
54.4
|
|
|
$
|
128.0
|
|
|
$
|
109.5
|
|
(a)
|
Includes share-based compensation expense related to (i)
Liberty Global
performance-based restricted share units (
PSU
s
), (ii) a challenge performance award plan for certain executive officers and key employees (the
Challenge Performance
|
(b)
|
The amount for the six-month period in 2015 includes the reversal of
$1.8 million
of share-based compensation expense, primarily related to forfeitures of unvested
PSU
s during the first quarter of 2015.
|
|
Liberty Global
ordinary shares (a)
|
|
Liberty Global performance-based awards (b)
|
||||
|
|
|
|
||||
Total compensation expense not yet recognized (in millions)
|
$
|
212.0
|
|
|
$
|
148.7
|
|
Weighted average period remaining for expense recognition (in years)
|
3.1
|
|
|
1.3
|
|
(a)
|
Amounts relate to awards granted or assumed by
Liberty Global
under (i) the Liberty Global 2014 Incentive Plan (as amended and restated effective February 24, 2015), (ii) the Liberty Global 2014 Nonemployee Director Incentive Plan, (iii) the Liberty Global, Inc. 2005 Incentive Plan (as amended and restated effective June 7, 2013), (iv) the Liberty Global, Inc. 2005 Nonemployee Director Incentive Plan (as amended and restated effective June 7, 2013) and (v) certain other incentive plans of
Virgin Media
, including
Virgin Media
’s 2010 stock incentive plan. All new awards are granted under the Liberty Global 2014 Incentive Plan or the Liberty Global 2014 Nonemployee Director Incentive Plan.
|
(b)
|
Amounts relate to (i) the
Challenge Performance Awards
, (ii)
PSU
s and (iii) the
PGUs
.
|
|
Six months ended
|
||||||
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Assumptions used to estimate fair value of options, share appreciation rights (
SARs
) and PSARs granted:
|
|
|
|
||||
Risk-free interest rate
|
0.96 - 1.89%
|
|
0.81 - 1.77%
|
||||
Expected life
|
3.0 - 5.5 years
|
|
3.1 - 5.1 years
|
||||
Expected volatility
|
23.1 - 30.1%
|
|
25.5 - 28.7%
|
||||
Expected dividend yield
|
none
|
|
none
|
||||
Weighted average grant-date fair value per share of awards granted:
|
|
|
|
||||
Options
|
$
|
14.73
|
|
|
$
|
11.40
|
|
SARs
|
$
|
10.78
|
|
|
$
|
8.95
|
|
PSARs
|
$
|
—
|
|
|
$
|
8.15
|
|
Restricted share units (
RSUs
)
|
$
|
51.97
|
|
|
$
|
39.72
|
|
PSUs
|
$
|
51.69
|
|
|
$
|
40.41
|
|
PGUs
|
$
|
—
|
|
|
$
|
44.04
|
|
Total intrinsic value of awards exercised (in millions):
|
|
|
|
||||
Options
|
$
|
93.5
|
|
|
$
|
43.7
|
|
SARs
|
$
|
40.1
|
|
|
$
|
17.7
|
|
PSARs
|
$
|
0.2
|
|
|
$
|
0.2
|
|
Cash received from exercise of options (in millions)
|
$
|
37.0
|
|
|
$
|
23.9
|
|
Income tax benefit related to share-based compensation (in millions)
|
$
|
28.0
|
|
|
$
|
20.1
|
|
Options — Class A ordinary shares
|
Number of
shares
|
|
Weighted
average
exercise price
|
|
Weighted
average
remaining
contractual
term
|
|
Aggregate
intrinsic value
|
|||||
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2015
|
1,726,259
|
|
|
$
|
18.01
|
|
|
|
|
|
||
Granted
|
61,763
|
|
|
$
|
54.97
|
|
|
|
|
|
||
Cancelled
|
(13,836
|
)
|
|
$
|
23.59
|
|
|
|
|
|
||
Exercised
|
(920,468
|
)
|
|
$
|
14.03
|
|
|
|
|
|
||
Outstanding at June 30, 2015
|
853,718
|
|
|
$
|
24.90
|
|
|
5.6
|
|
$
|
25.0
|
|
Exercisable at June 30, 2015
|
417,692
|
|
|
$
|
18.05
|
|
|
4.3
|
|
$
|
15.0
|
|
Options — Class C ordinary shares
|
Number of
shares
|
|
Weighted
average
exercise price
|
|
Weighted
average
remaining
contractual
term
|
|
Aggregate
intrinsic value
|
|||||
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2015
|
3,946,192
|
|
|
$
|
17.67
|
|
|
|
|
|
||
Granted
|
622,301
|
|
|
$
|
43.34
|
|
|
|
|
|
||
Cancelled
|
(34,493
|
)
|
|
$
|
22.23
|
|
|
|
|
|
||
Exercised
|
(1,613,927
|
)
|
|
$
|
14.99
|
|
|
|
|
|
||
Outstanding at June 30, 2015
|
2,920,073
|
|
|
$
|
24.57
|
|
|
6.1
|
|
$
|
76.3
|
|
Exercisable at June 30, 2015
|
1,377,436
|
|
|
$
|
15.25
|
|
|
4.1
|
|
$
|
48.7
|
|
SARs — Class A ordinary shares
|
Number of
shares
|
|
Weighted
average
base price
|
|
Weighted
average
remaining
contractual
term
|
|
Aggregate
intrinsic value
|
|||||
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2015
|
5,607,988
|
|
|
$
|
31.07
|
|
|
|
|
|
||
Granted
|
2,252,602
|
|
|
$
|
53.11
|
|
|
|
|
|
||
Forfeited
|
(106,696
|
)
|
|
$
|
37.27
|
|
|
|
|
|
||
Exercised
|
(354,800
|
)
|
|
$
|
25.68
|
|
|
|
|
|
||
Outstanding at June 30, 2015
|
7,399,094
|
|
|
$
|
37.95
|
|
|
5.1
|
|
$
|
119.3
|
|
Exercisable at June 30, 2015
|
2,815,909
|
|
|
$
|
25.41
|
|
|
3.4
|
|
$
|
80.7
|
|
SARs — Class C ordinary shares
|
Number of
shares
|
|
Weighted
average
base price
|
|
Weighted
average
remaining
contractual
term
|
|
Aggregate
intrinsic value
|
|||||
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2015
|
14,689,045
|
|
|
$
|
28.49
|
|
|
|
|
|
||
Granted
|
4,505,204
|
|
|
$
|
51.41
|
|
|
|
|
|
||
Forfeited
|
(262,502
|
)
|
|
$
|
34.80
|
|
|
|
|
|
||
Exercised
|
(1,062,945
|
)
|
|
$
|
23.48
|
|
|
|
|
|
||
Outstanding at June 30, 2015
|
17,868,802
|
|
|
$
|
34.47
|
|
|
4.8
|
|
$
|
292.2
|
|
Exercisable at June 30, 2015
|
7,907,213
|
|
|
$
|
23.75
|
|
|
3.3
|
|
$
|
212.5
|
|
PSARs — Class A ordinary shares
|
Number of
shares
|
|
Weighted
average
base price
|
|
Weighted
average
remaining
contractual
term
|
|
Aggregate
intrinsic value
|
|||||
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2015
|
2,788,749
|
|
|
$
|
35.10
|
|
|
|
|
|
||
Forfeited
|
(35,625
|
)
|
|
$
|
35.03
|
|
|
|
|
|
||
Exercised
|
(4,166
|
)
|
|
$
|
35.03
|
|
|
|
|
|
||
Outstanding at June 30, 2015
|
2,748,958
|
|
|
$
|
35.10
|
|
|
5.0
|
|
$
|
52.1
|
|
Exercisable at June 30, 2015
|
7,708
|
|
|
$
|
35.03
|
|
|
1.6
|
|
$
|
0.1
|
|
PSARs — Class C ordinary shares
|
Number of
shares
|
|
Weighted
average
base price
|
|
Weighted
average
remaining
contractual
term
|
|
Aggregate
intrinsic value
|
|||||
|
|
|
|
|
in years
|
|
in millions
|
|||||
Outstanding at January 1, 2015
|
8,366,248
|
|
|
$
|
33.48
|
|
|
|
|
|
||
Forfeited
|
(106,875
|
)
|
|
$
|
33.41
|
|
|
|
|
|
||
Exercised
|
(12,499
|
)
|
|
$
|
33.41
|
|
|
|
|
|
||
Outstanding at June 30, 2015
|
8,246,874
|
|
|
$
|
33.48
|
|
|
5.0
|
|
$
|
141.4
|
|
Exercisable at June 30, 2015
|
23,124
|
|
|
$
|
33.41
|
|
|
1.6
|
|
$
|
0.4
|
|
RSUs — Class A ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2015
|
565,270
|
|
|
$
|
38.27
|
|
|
|
Granted
|
298,713
|
|
|
$
|
53.11
|
|
|
|
Forfeited
|
(18,827
|
)
|
|
$
|
37.52
|
|
|
|
Released from restrictions
|
(299,372
|
)
|
|
$
|
37.65
|
|
|
|
Outstanding at June 30, 2015
|
545,784
|
|
|
$
|
46.76
|
|
|
3.3
|
RSUs — Class C ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2015
|
1,387,003
|
|
|
$
|
35.59
|
|
|
|
Granted
|
597,426
|
|
|
$
|
51.40
|
|
|
|
Forfeited
|
(45,611
|
)
|
|
$
|
34.70
|
|
|
|
Released from restrictions
|
(553,929
|
)
|
|
$
|
34.55
|
|
|
|
Outstanding at June 30, 2015
|
1,384,889
|
|
|
$
|
42.85
|
|
|
3.7
|
PSUs and PGUs — Class A ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2015
|
1,989,693
|
|
|
$
|
41.34
|
|
|
|
Granted
|
410,716
|
|
|
$
|
52.82
|
|
|
|
Performance adjustment (a)
|
50,410
|
|
|
$
|
37.31
|
|
|
|
Forfeited
|
(22,619
|
)
|
|
$
|
38.47
|
|
|
|
Released from restrictions
|
(543,707
|
)
|
|
$
|
41.12
|
|
|
|
Outstanding at June 30, 2015
|
1,884,493
|
|
|
$
|
43.84
|
|
|
1.5
|
PGUs — Class B ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2015
|
1,000,000
|
|
|
$
|
44.55
|
|
|
|
Released from restrictions
|
(333,333
|
)
|
|
$
|
44.55
|
|
|
|
Outstanding at June 30, 2015
|
666,667
|
|
|
$
|
44.55
|
|
|
1.7
|
PSUs — Class C ordinary shares
|
Number of
shares
|
|
Weighted
average
grant-date
fair value
per share
|
|
Weighted
average
remaining
contractual
term
|
|||
|
|
|
|
|
in years
|
|||
Outstanding at January 1, 2015
|
2,442,767
|
|
|
$
|
36.71
|
|
|
|
Granted
|
821,432
|
|
|
$
|
51.12
|
|
|
|
Performance adjustment (a)
|
147,179
|
|
|
$
|
34.80
|
|
|
|
Forfeited
|
(58,997
|
)
|
|
$
|
36.02
|
|
|
|
Released from restrictions
|
(614,341
|
)
|
|
$
|
34.80
|
|
|
|
Outstanding at June 30, 2015
|
2,738,040
|
|
|
$
|
41.38
|
|
|
1.3
|
(a)
|
Represents the increase in
PSU
s associated with the first quarter
2015
determination that
113.6%
of the
PSU
s that were granted in
2013
(the
2013 PSU
s
) had been earned. Half of the earned
2013 PSU
s were released from restrictions on March 31, 2015 and, subject to forfeitures, the remainder will be released on September 30, 2015.
|
|
Employee
severance
and
termination
|
|
Office
closures
|
|
Contract termination and other
|
|
Total
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Restructuring liability as of January 1, 2015
|
$
|
27.6
|
|
|
$
|
12.5
|
|
|
$
|
116.0
|
|
|
$
|
156.1
|
|
Restructuring charges (credits)
|
26.7
|
|
|
(0.5
|
)
|
|
5.1
|
|
|
31.3
|
|
||||
Cash paid
|
(30.7
|
)
|
|
(2.9
|
)
|
|
(14.6
|
)
|
|
(48.2
|
)
|
||||
Foreign currency translation adjustments and other
|
0.1
|
|
|
2.2
|
|
|
(7.1
|
)
|
|
(4.8
|
)
|
||||
Restructuring liability as of June 30, 2015
|
$
|
23.7
|
|
|
$
|
11.3
|
|
|
$
|
99.4
|
|
|
$
|
134.4
|
|
|
|
|
|
|
|
|
|
||||||||
Current portion
|
$
|
23.6
|
|
|
$
|
2.6
|
|
|
$
|
15.9
|
|
|
$
|
42.1
|
|
Noncurrent portion
|
0.1
|
|
|
8.7
|
|
|
83.5
|
|
|
92.3
|
|
||||
Total
|
$
|
23.7
|
|
|
$
|
11.3
|
|
|
$
|
99.4
|
|
|
$
|
134.4
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Amounts attributable to Liberty Global shareholders:
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations
|
$
|
(464.7
|
)
|
|
$
|
(242.7
|
)
|
|
$
|
(1,002.2
|
)
|
|
$
|
(662.2
|
)
|
Earnings (loss) from discontinued operation
|
—
|
|
|
(7.2
|
)
|
|
—
|
|
|
333.5
|
|
||||
Net loss attributable to Liberty Global shareholders
|
$
|
(464.7
|
)
|
|
$
|
(249.9
|
)
|
|
$
|
(1,002.2
|
)
|
|
$
|
(328.7
|
)
|
|
Payments due during:
|
|
|
||||||||||||||||||||||||||||
|
Remainder
of 2015
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Total
|
||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Programming commitments
|
$
|
519.2
|
|
|
$
|
977.6
|
|
|
$
|
880.3
|
|
|
$
|
701.3
|
|
|
$
|
263.7
|
|
|
$
|
5.5
|
|
|
$
|
2.4
|
|
|
$
|
3,350.0
|
|
Network and connectivity commitments
|
190.7
|
|
|
265.6
|
|
|
239.3
|
|
|
124.5
|
|
|
86.9
|
|
|
62.8
|
|
|
907.0
|
|
|
1,876.8
|
|
||||||||
Purchase commitments
|
797.0
|
|
|
157.7
|
|
|
70.3
|
|
|
12.2
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
1,041.5
|
|
||||||||
Operating leases
|
88.8
|
|
|
152.5
|
|
|
128.3
|
|
|
110.3
|
|
|
89.8
|
|
|
56.3
|
|
|
293.9
|
|
|
919.9
|
|
||||||||
Other commitments
|
209.9
|
|
|
190.4
|
|
|
146.5
|
|
|
89.8
|
|
|
45.1
|
|
|
22.4
|
|
|
27.6
|
|
|
731.7
|
|
||||||||
Total (a)
|
$
|
1,805.6
|
|
|
$
|
1,743.8
|
|
|
$
|
1,464.7
|
|
|
$
|
1,038.1
|
|
|
$
|
489.8
|
|
|
$
|
147.0
|
|
|
$
|
1,230.9
|
|
|
$
|
7,919.9
|
|
(a)
|
The commitments reflected in this table do not reflect any liabilities that are included in our
June 30, 2015
condensed consolidated balance sheet.
|
•
|
European Operations Division
:
|
•
|
U.K./Ireland
|
•
|
The Netherlands
|
•
|
Germany
|
•
|
Belgium
|
•
|
Switzerland/Austria
|
•
|
Central and Eastern Europe
|
•
|
LiLAC Division:
|
•
|
Chile
|
•
|
Puerto Rico
|
|
Revenue
|
||||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
1,759.6
|
|
|
$
|
1,896.7
|
|
|
$
|
3,471.0
|
|
|
$
|
3,744.2
|
|
The Netherlands (a)
|
683.9
|
|
|
316.3
|
|
|
1,391.3
|
|
|
634.4
|
|
||||
Germany
|
591.0
|
|
|
688.8
|
|
|
1,188.9
|
|
|
1,384.7
|
|
||||
Belgium
|
500.3
|
|
|
582.4
|
|
|
1,003.0
|
|
|
1,156.6
|
|
||||
Switzerland/Austria
|
448.8
|
|
|
476.7
|
|
|
888.1
|
|
|
940.5
|
|
||||
Total Western Europe
|
3,983.6
|
|
|
3,960.9
|
|
|
7,942.3
|
|
|
7,860.4
|
|
||||
Central and Eastern Europe
|
267.2
|
|
|
324.5
|
|
|
535.4
|
|
|
648.4
|
|
||||
Central and other
|
(1.0
|
)
|
|
(1.2
|
)
|
|
(3.8
|
)
|
|
(2.0
|
)
|
||||
Total European Operations Division
|
4,249.8
|
|
|
4,284.2
|
|
|
8,473.9
|
|
|
8,506.8
|
|
||||
Corporate and other
|
12.8
|
|
|
17.6
|
|
|
25.6
|
|
|
36.0
|
|
||||
Intersegment eliminations (b)
|
(7.5
|
)
|
|
(6.0
|
)
|
|
(15.3
|
)
|
|
(13.2
|
)
|
||||
Total Liberty Global Group
|
4,255.1
|
|
|
4,295.8
|
|
|
8,484.2
|
|
|
8,529.6
|
|
||||
LiLAC Group:
|
|
|
|
|
|
|
|
||||||||
Chile
|
220.8
|
|
|
229.8
|
|
|
429.6
|
|
|
455.1
|
|
||||
Puerto Rico (c)
|
90.6
|
|
|
76.6
|
|
|
169.6
|
|
|
151.3
|
|
||||
Total LiLAC Group
|
311.4
|
|
|
306.4
|
|
|
599.2
|
|
|
606.4
|
|
||||
Inter-group eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Total
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
(a)
|
The amounts presented for the 2014 periods exclude the revenue of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
Amounts are primarily related to transactions between our
European Operations Division
and our programming operations.
|
(c)
|
The amounts presented for the 2015 periods include the post-acquisition revenue of
Choice
, which was acquired on
June 3, 2015
.
|
|
Adjusted OIBDA
|
||||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
805.6
|
|
|
$
|
829.5
|
|
|
$
|
1,568.9
|
|
|
$
|
1,621.1
|
|
The Netherlands (a)
|
371.0
|
|
|
185.1
|
|
|
738.9
|
|
|
368.4
|
|
||||
Germany
|
366.9
|
|
|
431.0
|
|
|
730.9
|
|
|
860.0
|
|
||||
Belgium
|
260.8
|
|
|
287.9
|
|
|
507.8
|
|
|
590.0
|
|
||||
Switzerland/Austria
|
259.7
|
|
|
277.4
|
|
|
508.5
|
|
|
541.8
|
|
||||
Total Western Europe
|
2,064.0
|
|
|
2,010.9
|
|
|
4,055.0
|
|
|
3,981.3
|
|
||||
Central and Eastern Europe
|
118.4
|
|
|
147.2
|
|
|
236.5
|
|
|
305.4
|
|
||||
Central and other
|
(72.7
|
)
|
|
(71.9
|
)
|
|
(140.6
|
)
|
|
(142.8
|
)
|
||||
Total European Operations Division
|
2,109.7
|
|
|
2,086.2
|
|
|
4,150.9
|
|
|
4,143.9
|
|
||||
Corporate and other
|
(52.3
|
)
|
|
(59.6
|
)
|
|
(104.4
|
)
|
|
(105.1
|
)
|
||||
Intersegment eliminations (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
||||
Total Liberty Global Group
|
2,057.4
|
|
|
2,026.6
|
|
|
4,046.5
|
|
|
4,042.8
|
|
||||
LiLAC Group:
|
|
|
|
|
|
|
|
||||||||
LiLAC Division:
|
|
|
|
|
|
|
|
||||||||
Chile
|
87.6
|
|
|
85.8
|
|
|
163.6
|
|
|
168.5
|
|
||||
Puerto Rico (c)
|
40.8
|
|
|
33.4
|
|
|
74.3
|
|
|
62.7
|
|
||||
Total LiLAC Division
|
128.4
|
|
|
119.2
|
|
|
237.9
|
|
|
231.2
|
|
||||
Corporate and other
|
(0.8
|
)
|
|
(0.9
|
)
|
|
(2.1
|
)
|
|
(1.6
|
)
|
||||
Total LiLAC Group
|
127.6
|
|
|
118.3
|
|
|
235.8
|
|
|
229.6
|
|
||||
Total
|
$
|
2,185.0
|
|
|
$
|
2,144.9
|
|
|
$
|
4,282.3
|
|
|
$
|
4,272.4
|
|
(a)
|
The amounts presented for the 2014 periods exclude the
Adjusted OIBDA
of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amount for the
six months ended June 30, 2014
is related to transactions between our
European Operations Division
and the
Chellomedia Disposal Group
, which eliminations are no longer recorded following the completion of the
Chellomedia Transaction
on January 31, 2014.
|
(c)
|
The amounts presented for the 2015 periods include the post-acquisition
Adjusted OIBDA
of
Choice
, which was acquired on
June 3, 2015
.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Total segment Adjusted OIBDA from continuing operations
|
$
|
2,185.0
|
|
|
$
|
2,144.9
|
|
|
$
|
4,282.3
|
|
|
$
|
4,272.4
|
|
Share-based compensation
|
(56.6
|
)
|
|
(54.4
|
)
|
|
(128.0
|
)
|
|
(109.5
|
)
|
||||
Depreciation and amortization
|
(1,477.8
|
)
|
|
(1,393.4
|
)
|
|
(2,929.2
|
)
|
|
(2,770.5
|
)
|
||||
Impairment, restructuring and other operating items, net
|
(25.7
|
)
|
|
(27.6
|
)
|
|
(42.7
|
)
|
|
(141.2
|
)
|
||||
Operating income
|
624.9
|
|
|
669.5
|
|
|
1,182.4
|
|
|
1,251.2
|
|
||||
Interest expense
|
(600.8
|
)
|
|
(641.8
|
)
|
|
(1,216.7
|
)
|
|
(1,295.3
|
)
|
||||
Realized and unrealized losses on derivative instruments, net
|
(679.7
|
)
|
|
(328.6
|
)
|
|
(61.2
|
)
|
|
(705.2
|
)
|
||||
Foreign currency transaction gains (losses), net
|
340.4
|
|
|
(36.4
|
)
|
|
(695.2
|
)
|
|
(57.2
|
)
|
||||
Realized and unrealized gains due to changes in fair values of certain investments, net
|
110.8
|
|
|
157.4
|
|
|
262.2
|
|
|
97.2
|
|
||||
Losses on debt modification and extinguishment, net
|
(73.8
|
)
|
|
(53.0
|
)
|
|
(348.3
|
)
|
|
(73.9
|
)
|
||||
Other income (expense), net
|
(1.7
|
)
|
|
(1.7
|
)
|
|
(2.7
|
)
|
|
11.6
|
|
||||
Loss from continuing operations before income taxes
|
$
|
(279.9
|
)
|
|
$
|
(234.6
|
)
|
|
$
|
(879.5
|
)
|
|
$
|
(771.6
|
)
|
|
Six months ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
in millions
|
||||||
Liberty Global Group:
|
|
|
|
||||
European Operations Division:
|
|
|
|
||||
U.K./Ireland
|
$
|
723.2
|
|
|
$
|
739.6
|
|
The Netherlands (a)
|
251.9
|
|
|
109.4
|
|
||
Germany
|
268.1
|
|
|
280.8
|
|
||
Belgium
|
139.9
|
|
|
211.7
|
|
||
Switzerland/Austria
|
139.3
|
|
|
158.7
|
|
||
Total Western Europe
|
1,522.4
|
|
|
1,500.2
|
|
||
Central and Eastern Europe
|
113.3
|
|
|
106.7
|
|
||
Central and other
|
162.2
|
|
|
135.7
|
|
||
Total European Operations Division
|
1,797.9
|
|
|
1,742.6
|
|
||
Corporate and other
|
41.7
|
|
|
3.9
|
|
||
Total Liberty Global Group
|
1,839.6
|
|
|
1,746.5
|
|
||
LiLAC Group:
|
|
|
|
||||
Chile
|
89.6
|
|
|
101.3
|
|
||
Puerto Rico (b)
|
36.3
|
|
|
33.2
|
|
||
Total LiLAC Group
|
125.9
|
|
|
134.5
|
|
||
Total property and equipment additions
|
1,965.5
|
|
|
1,881.0
|
|
||
Assets acquired under capital-related vendor financing arrangements
|
(675.9
|
)
|
|
(401.8
|
)
|
||
Assets acquired under capital leases
|
(74.5
|
)
|
|
(89.8
|
)
|
||
Changes in current liabilities related to capital expenditures
|
47.3
|
|
|
12.6
|
|
||
Total capital expenditures
|
$
|
1,262.4
|
|
|
$
|
1,402.0
|
|
(a)
|
The amount presented for the 2014 period excludes the property and equipment additions of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amount presented for the 2015 period includes the post-acquisition property and equipment additions of
Choice
, which was acquired on
June 3, 2015
.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Subscription revenue (a):
|
|
|
|
|
|
|
|
||||||||
Video
|
$
|
1,607.9
|
|
|
$
|
1,663.5
|
|
|
$
|
3,217.3
|
|
|
$
|
3,305.0
|
|
Broadband internet
|
1,276.7
|
|
|
1,190.6
|
|
|
2,515.9
|
|
|
2,334.5
|
|
||||
Fixed-line telephony
|
801.4
|
|
|
833.0
|
|
|
1,601.1
|
|
|
1,659.4
|
|
||||
Cable subscription revenue
|
3,686.0
|
|
|
3,687.1
|
|
|
7,334.3
|
|
|
7,298.9
|
|
||||
Mobile subscription revenue (b)
|
261.2
|
|
|
273.1
|
|
|
512.9
|
|
|
530.4
|
|
||||
Total subscription revenue
|
3,947.2
|
|
|
3,960.2
|
|
|
7,847.2
|
|
|
7,829.3
|
|
||||
B2B revenue (c)
|
380.5
|
|
|
372.0
|
|
|
754.4
|
|
|
739.0
|
|
||||
Other revenue (b) (d)
|
238.8
|
|
|
270.0
|
|
|
481.8
|
|
|
567.6
|
|
||||
Total
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
(a)
|
Subscription revenue includes amounts received from subscribers for ongoing services, excluding installation fees and late fees. Subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.
|
(b)
|
Mobile subscription revenue excludes mobile interconnect revenue of
$53.1 million
and
$63.0 million
during the
three months ended June 30, 2015
and
2014
, respectively, and
$107.5 million
and
$123.8 million
during the
six months ended June 30, 2015
and
2014
, respectively. Mobile interconnect revenue and revenue from mobile handset sales are included in other revenue.
|
(c)
|
B2B
revenue includes revenue from business broadband internet, video, voice, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators. We also provide services to certain small office and home office (
SOHO
) subscribers.
SOHO
subscribers pay a premium price to receive enhanced service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. Revenue from
SOHO
subscribers, which aggregated
$71.9 million
and
$55.2 million
during the
three months ended June 30, 2015
and
2014
, respectively, and
$138.5 million
and
$107.2 million
during the
six months ended June 30, 2015
and
2014
, respectively, is included in cable subscription revenue.
|
(d)
|
Other revenue includes, among other items,
interconnect, mobile handset sales, carriage fee and installation revenue
.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
||||||||
U.K.
|
$
|
1,662.4
|
|
|
$
|
1,774.6
|
|
|
$
|
3,274.4
|
|
|
$
|
3,502.5
|
|
The Netherlands (a)
|
683.9
|
|
|
316.3
|
|
|
1,391.3
|
|
|
634.4
|
|
||||
Germany
|
591.0
|
|
|
688.8
|
|
|
1,188.9
|
|
|
1,384.7
|
|
||||
Belgium
|
500.3
|
|
|
582.4
|
|
|
1,003.0
|
|
|
1,156.6
|
|
||||
Switzerland
|
357.3
|
|
|
365.3
|
|
|
704.1
|
|
|
718.1
|
|
||||
Poland
|
101.2
|
|
|
121.2
|
|
|
202.2
|
|
|
241.7
|
|
||||
Ireland
|
97.2
|
|
|
122.1
|
|
|
196.6
|
|
|
241.7
|
|
||||
Austria
|
91.5
|
|
|
111.4
|
|
|
184.0
|
|
|
222.4
|
|
||||
Hungary
|
65.2
|
|
|
80.6
|
|
|
130.2
|
|
|
159.3
|
|
||||
The Czech Republic
|
43.8
|
|
|
57.5
|
|
|
88.2
|
|
|
116.3
|
|
||||
Romania
|
38.7
|
|
|
43.5
|
|
|
77.6
|
|
|
87.0
|
|
||||
Slovakia
|
14.8
|
|
|
19.6
|
|
|
30.0
|
|
|
38.8
|
|
||||
Other
|
2.5
|
|
|
0.9
|
|
|
3.4
|
|
|
3.3
|
|
||||
Total European Operations Division
|
4,249.8
|
|
|
4,284.2
|
|
|
8,473.9
|
|
|
8,506.8
|
|
||||
Other, including intersegment eliminations
|
5.3
|
|
|
11.6
|
|
|
10.3
|
|
|
22.8
|
|
||||
Total Liberty Global Group
|
4,255.1
|
|
|
4,295.8
|
|
|
8,484.2
|
|
|
8,529.6
|
|
||||
LiLAC Group:
|
|
|
|
|
|
|
|
||||||||
Chile
|
220.8
|
|
|
229.8
|
|
|
429.6
|
|
|
455.1
|
|
||||
Puerto Rico (b)
|
90.6
|
|
|
76.6
|
|
|
169.6
|
|
|
151.3
|
|
||||
Total LiLAC Group
|
311.4
|
|
|
306.4
|
|
|
599.2
|
|
|
606.4
|
|
||||
Inter-group eliminations
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Total
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
(a)
|
The amounts presented for the 2014 periods exclude the revenue of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amounts presented for the 2015 periods include the post-acquisition revenue of
Choice
, which was acquired on
June 3, 2015
.
|
|
|
Redemption price
|
Year
|
|
Telenet Finance VI Notes
|
|
|
|
2021
|
102.438%
|
|
2022
|
101.219%
|
|
2023
|
100.609%
|
|
2024 and thereafter
|
100.000%
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Forward-Looking Statements.
This section provides a description of certain factors that could cause actual results or events to differ materially from anticipated results or events.
|
•
|
Overview.
This section provides a general description of our business and recent events.
|
•
|
Material Changes in Results of Operations.
This section provides an analysis of our results of operations for the
three and six months ended June 30, 2015
and
2014
.
|
•
|
Material Changes in Financial Condition.
This section provides an analysis of our corporate and subsidiary liquidity, condensed consolidated statements of cash flows and contractual commitments.
|
•
|
Quantitative and Qualitative Disclosures about Market Risk.
This section provides discussion and analysis of the foreign currency, interest rate and other market risk that our company faces.
|
•
|
economic and business conditions and industry trends in the countries in which we operate;
|
•
|
the competitive environment in the industries in the countries in which we operate, including competitor responses to our products and services;
|
•
|
fluctuations in currency exchange rates and interest rates;
|
•
|
instability in global financial markets, including sovereign debt issues and related fiscal reforms;
|
•
|
consumer disposable income and spending levels, including the availability and amount of individual consumer debt;
|
•
|
changes in consumer television viewing preferences and habits;
|
•
|
consumer acceptance of our existing service offerings, including our enhanced video, broadband internet, fixed-line telephony, mobile and business service offerings, and of new technology, programming alternatives and other products and services that we may offer in the future;
|
•
|
our ability to manage rapid technological changes;
|
•
|
our ability to maintain or increase the number of subscriptions to our enhanced video, broadband internet, fixed-line telephony and mobile service offerings and our average revenue per household;
|
•
|
our ability to provide satisfactory customer service, including support for new and evolving products and services;
|
•
|
our ability to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers;
|
•
|
our ability to maintain our revenue from channel carriage arrangements, particularly in Germany;
|
•
|
the impact of our future financial performance, or market conditions generally, on the availability, terms and deployment of capital;
|
•
|
changes in, or failure or inability to comply with, government regulations in the countries in which we operate and adverse outcomes from regulatory proceedings;
|
•
|
government intervention that opens our broadband distribution networks to competitors, such as the obligations imposed in Belgium;
|
•
|
our ability to obtain regulatory approval and satisfy other conditions necessary to close acquisitions and dispositions, and the impact of conditions imposed by competition and other regulatory authorities in connection with acquisitions, including the impact of the conditions imposed in connection with the acquisition of
KBW
on our operations in Germany and the
Ziggo Acquisition
on our operations in the Netherlands;
|
•
|
our ability to successfully acquire new businesses and, if acquired, to integrate, realize anticipated efficiencies from, and implement our business plan with respect to, the businesses we have acquired, such as
Ziggo
and
Choice
, or may acquire, such as
BASE
;
|
•
|
changes in laws or treaties relating to taxation, or the interpretation thereof, in the
U.K.
,
U.S.
or in other countries in which we operate;
|
•
|
changes in laws and government regulations that may impact the availability and cost of credit and the derivative instruments that hedge certain of our financial risks;
|
•
|
the ability of suppliers and vendors (including our third-party wireless network providers under our
MVNO
arrangements) to timely deliver quality products, equipment, software, services and access;
|
•
|
the availability of attractive programming for our enhanced video services and the costs associated with such programming, including retransmission and copyright fees payable to public and private broadcasters;
|
•
|
uncertainties inherent in the development and integration of new business lines and business strategies;
|
•
|
our ability to adequately forecast and plan future network requirements including the costs and benefits associated with the planned
U.K.
network extension;
|
•
|
the availability of capital for the acquisition and/or development of telecommunications networks and services;
|
•
|
problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire;
|
•
|
the leakage of sensitive customer data;
|
•
|
the outcome of any pending or threatened litigation;
|
•
|
the loss of key employees and the availability of qualified personnel;
|
•
|
changes in the nature of key strategic relationships with partners and joint venturers;
|
•
|
our new equity capital structure following the
LiLAC Transaction
; and
|
•
|
events that are outside of our control, such as political unrest in international markets, terrorist attacks, malicious human acts, natural disasters, pandemics and other similar events.
|
(i)
|
organic declines in overall revenue in the Netherlands during the
second
quarter of
2015
, as compared to the
second
quarter of
2014
and the first quarter of
2015
; and
|
(ii)
|
organic declines during the
second
quarter of
2015
in (a) video
RGU
s in most of our markets, as declines in our basic video
RGU
s generally exceeded additions to our enhanced video
RGU
s (including migrations from basic video) in these markets, (b) fixed-line telephony
RGU
s in the Netherlands, (c) broadband internet
RGU
s in the Netherlands and (d) total
RGU
s in the Netherlands.
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
1,759.6
|
|
|
$
|
1,896.7
|
|
|
$
|
(137.1
|
)
|
|
(7.2
|
)
|
|
3.4
|
|
The Netherlands (a)
|
683.9
|
|
|
316.3
|
|
|
367.6
|
|
|
116.2
|
|
|
(5.6
|
)
|
|||
Germany
|
591.0
|
|
|
688.8
|
|
|
(97.8
|
)
|
|
(14.2
|
)
|
|
6.3
|
|
|||
Belgium
|
500.3
|
|
|
582.4
|
|
|
(82.1
|
)
|
|
(14.1
|
)
|
|
6.4
|
|
|||
Switzerland/Austria
|
448.8
|
|
|
476.7
|
|
|
(27.9
|
)
|
|
(5.9
|
)
|
|
2.7
|
|
|||
Total Western Europe
|
3,983.6
|
|
|
3,960.9
|
|
|
22.7
|
|
|
0.6
|
|
|
3.5
|
|
|||
Central and Eastern Europe
|
267.2
|
|
|
324.5
|
|
|
(57.3
|
)
|
|
(17.7
|
)
|
|
1.4
|
|
|||
Central and other
|
(1.0
|
)
|
|
(1.2
|
)
|
|
0.2
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total European Operations Division
|
4,249.8
|
|
|
4,284.2
|
|
|
(34.4
|
)
|
|
(0.8
|
)
|
|
3.4
|
|
|||
Corporate and other
|
12.8
|
|
|
17.6
|
|
|
(4.8
|
)
|
|
(27.3
|
)
|
|
(15.4
|
)
|
|||
Intersegment eliminations
|
(7.5
|
)
|
|
(6.0
|
)
|
|
(1.5
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
4,255.1
|
|
|
4,295.8
|
|
|
(40.7
|
)
|
|
(0.9
|
)
|
|
3.2
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
220.8
|
|
|
229.8
|
|
|
(9.0
|
)
|
|
(3.9
|
)
|
|
7.1
|
|
|||
Puerto Rico (b)
|
90.6
|
|
|
76.6
|
|
|
14.0
|
|
|
18.3
|
|
|
8.6
|
|
|||
Total LiLAC Group
|
311.4
|
|
|
306.4
|
|
|
5.0
|
|
|
1.6
|
|
|
7.5
|
|
|||
Total
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
(35.7
|
)
|
|
(0.8
|
)
|
|
3.5
|
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
3,471.0
|
|
|
$
|
3,744.2
|
|
|
$
|
(273.2
|
)
|
|
(7.3
|
)
|
|
2.9
|
|
The Netherlands (a)
|
1,391.3
|
|
|
634.4
|
|
|
756.9
|
|
|
119.3
|
|
|
(3.7
|
)
|
|||
Germany
|
1,188.9
|
|
|
1,384.7
|
|
|
(195.8
|
)
|
|
(14.1
|
)
|
|
5.4
|
|
|||
Belgium
|
1,003.0
|
|
|
1,156.6
|
|
|
(153.6
|
)
|
|
(13.3
|
)
|
|
6.5
|
|
|||
Switzerland/Austria
|
888.1
|
|
|
940.5
|
|
|
(52.4
|
)
|
|
(5.6
|
)
|
|
3.3
|
|
|||
Total Western Europe
|
7,942.3
|
|
|
7,860.4
|
|
|
81.9
|
|
|
1.0
|
|
|
3.4
|
|
|||
Central and Eastern Europe
|
535.4
|
|
|
648.4
|
|
|
(113.0
|
)
|
|
(17.4
|
)
|
|
1.1
|
|
|||
Central and other
|
(3.8
|
)
|
|
(2.0
|
)
|
|
(1.8
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total European Operations Division
|
8,473.9
|
|
|
8,506.8
|
|
|
(32.9
|
)
|
|
(0.4
|
)
|
|
3.2
|
|
|||
Corporate and other
|
25.6
|
|
|
36.0
|
|
|
(10.4
|
)
|
|
(28.9
|
)
|
|
(17.1
|
)
|
|||
Intersegment eliminations
|
(15.3
|
)
|
|
(13.2
|
)
|
|
(2.1
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
8,484.2
|
|
|
8,529.6
|
|
|
(45.4
|
)
|
|
(0.5
|
)
|
|
3.0
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
429.6
|
|
|
455.1
|
|
|
(25.5
|
)
|
|
(5.6
|
)
|
|
6.0
|
|
|||
Puerto Rico (b)
|
169.6
|
|
|
151.3
|
|
|
18.3
|
|
|
12.1
|
|
|
7.2
|
|
|||
Total LiLAC Group
|
599.2
|
|
|
606.4
|
|
|
(7.2
|
)
|
|
(1.2
|
)
|
|
6.3
|
|
|||
Inter-group eliminations
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
|
$
|
(52.5
|
)
|
|
(0.6
|
)
|
|
3.2
|
|
(a)
|
The amounts presented for the 2014 periods exclude the revenue of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amounts presented for the 2015 periods include the post-acquisition revenue of
Choice
, which was acquired on
June 3, 2015
.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
21.4
|
|
|
$
|
—
|
|
|
$
|
21.4
|
|
|
$
|
44.5
|
|
|
$
|
—
|
|
|
$
|
44.5
|
|
ARPU (b)
|
12.0
|
|
|
—
|
|
|
12.0
|
|
|
19.5
|
|
|
—
|
|
|
19.5
|
|
||||||
Total increase in cable subscription revenue
|
33.4
|
|
|
—
|
|
|
33.4
|
|
|
64.0
|
|
|
—
|
|
|
64.0
|
|
||||||
Increase (decrease) in mobile subscription revenue (c)
|
(2.2
|
)
|
|
—
|
|
|
(2.2
|
)
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
||||||
Total increase in subscription revenue
|
31.2
|
|
|
—
|
|
|
31.2
|
|
|
65.5
|
|
|
—
|
|
|
65.5
|
|
||||||
Increase in B2B revenue (d)
|
—
|
|
|
10.4
|
|
|
10.4
|
|
|
—
|
|
|
18.1
|
|
|
18.1
|
|
||||||
Increase in other non-subscription revenue (e)
|
—
|
|
|
22.0
|
|
|
22.0
|
|
|
—
|
|
|
24.4
|
|
|
24.4
|
|
||||||
Total organic increase
|
31.2
|
|
|
32.4
|
|
|
63.6
|
|
|
65.5
|
|
|
42.5
|
|
|
108.0
|
|
||||||
Impact of acquisitions
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
0.4
|
|
|
1.6
|
|
|
2.0
|
|
||||||
Impact of a disposal
(f)
|
—
|
|
|
(15.6
|
)
|
|
(15.6
|
)
|
|
—
|
|
|
(26.2
|
)
|
|
(26.2
|
)
|
||||||
Impact of FX
|
(153.0
|
)
|
|
(32.9
|
)
|
|
(185.9
|
)
|
|
(294.9
|
)
|
|
(62.1
|
)
|
|
(357.0
|
)
|
||||||
Total
|
$
|
(121.8
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
(137.1
|
)
|
|
$
|
(229.0
|
)
|
|
$
|
(44.2
|
)
|
|
$
|
(273.2
|
)
|
(a)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are primarily attributable to increases in the average numbers of broadband internet and fixed-line telephony
RGU
s that were only partially offset by declines in Ireland in the average numbers of enhanced, basic and multi-channel multi-point (microwave) distribution system video
RGU
s.
|
(b)
|
The
increases
in cable subscription revenue related to changes in
ARPU
are due to the net effect of (i) net increases resulting from the following factors:
(a) higher
ARPU
due to February 2015 and February 2014 price increases for broadband internet, digital video and fixed-line telephony services,
(b) lower
ARPU
due to the impact of higher discounts,
(c) higher
ARPU
due to increases in the proportions of subscribers receiving higher-priced tiers of broadband internet services in
U.K./Ireland
’s bundles, (d) lower
ARPU
due to lower fixed-line telephony call volumes,
(e) lower
ARPU
resulting from the impact of a January 1, 2015 change in how
VAT
is applied to certain components of our U.K. operations, which reduced
Virgin Media
’s revenue by $13.0 million and $25.2 million, respectively, and (f) lower
ARPU
due to a change in legislation in the
U.K.
with respect to the charging of
VAT
, as discussed below, which reduced
Virgin Media
’s revenue by $6.1 million and
$24.0 million
, respectively, and (ii) adverse changes in
RGU
mix in Ireland.
|
(c)
|
The
changes
in mobile subscription revenue relate to
Virgin Media
and are primarily due to the net effect of
(i) increases in the number of customers taking postpaid mobile services, (ii) declines in the number of prepaid mobile customers, (iii) declines of $7.2 million and $10.8 million, respectively, in postpaid mobile services revenue due to the November 2014 introduction of a new mobile program in the
U.K.
whereby customers can elect to purchase a mobile handset pursuant to a contract that is independent of a mobile airtime services contract (the
Freestyle Mobile Proposition
),
(iv) decreases of $2.7 million and $5.7 million, respectively, related to the above-described change in
VAT
applicable to certain components of our
U.K.
operations and (v) declines in chargeable usage as subscribers moved to higher-limit and unlimited usage bundles for voice and short message service (or
SMS
). Revenue associated with handsets sold under the
Freestyle Mobile Proposition
is recognized upfront and included in other non-subscription revenue, as noted below. Prior to the
Freestyle Mobile Proposition
, this revenue, which was contingent upon delivering future airtime services, was recognized over the life of the customer contract as part of the monthly fee and included in subscription revenue.
|
(d)
|
The
increases
in
B2B
revenue are primarily due to the net effect of
(i) increases in data revenue, largely attributable to (a) higher volumes and (b) increases of $6.4 million and $13.0 million, respectively, in the
U.K.
’s amortization of deferred upfront fees on
B2B
contracts, and (ii) declines in voice revenue in the
U.K.
, primarily attributable to declines in usage.
|
(e)
|
The
increases
in other non-subscription revenue are primarily due to the net effect of (i) increases in mobile handset sales, primarily attributable to increases of $30.5 million and $51.9 million, respectively, associated with the November 2014 introduction of the
Freestyle Mobile Proposition
, (ii) decreases in interconnect revenue of $6.2 million and $11.6 million, respectively, primarily due to declines in mobile
SMS
termination volume, and (iii) decreases in installation revenue of $4.7 million and $10.5 million, respectively. Under the
Freestyle Mobile Proposition
,
Virgin Media
generally recognizes the full sales price for the mobile handset upon delivery, regardless of whether the sales price is received upfront or in installments.
|
(f)
|
Represents the estimated impact of the non-cable subscribers in the
U.K.
that we sold in the fourth quarter of 2014 (the
U.K. Non-Cable Disposal
). As of May 31, 2015, substantially all of these non-cable subscribers had been migrated to a third-party.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Pro forma increase (decrease) in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
(9.4
|
)
|
|
$
|
—
|
|
|
$
|
(9.4
|
)
|
|
$
|
(10.9
|
)
|
|
$
|
—
|
|
|
$
|
(10.9
|
)
|
ARPU (b)
|
(6.3
|
)
|
|
—
|
|
|
(6.3
|
)
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
||||||
Total pro forma decrease in cable subscription revenue
|
(15.7
|
)
|
|
—
|
|
|
(15.7
|
)
|
|
(9.4
|
)
|
|
—
|
|
|
(9.4
|
)
|
||||||
Pro forma increase in mobile subscription revenue (c)
|
4.7
|
|
|
—
|
|
|
4.7
|
|
|
9.9
|
|
|
—
|
|
|
9.9
|
|
||||||
Total pro forma increase (decrease) in subscription revenue
|
(11.0
|
)
|
|
—
|
|
|
(11.0
|
)
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||||
Pro forma decrease in B2B revenue (d)
|
—
|
|
|
(2.3
|
)
|
|
(2.3
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
(2.7
|
)
|
||||||
Pro forma decrease in other non-subscription revenue (e)
|
—
|
|
|
(13.3
|
)
|
|
(13.3
|
)
|
|
—
|
|
|
(24.0
|
)
|
|
(24.0
|
)
|
||||||
Total pro forma organic increase (decrease)
|
(11.0
|
)
|
|
(15.6
|
)
|
|
(26.6
|
)
|
|
0.5
|
|
|
(26.7
|
)
|
|
(26.2
|
)
|
||||||
Pro forma impact of FX
|
(148.1
|
)
|
|
(15.3
|
)
|
|
(163.4
|
)
|
|
(290.3
|
)
|
|
(26.0
|
)
|
|
(316.3
|
)
|
||||||
Total
|
$
|
(159.1
|
)
|
|
$
|
(30.9
|
)
|
|
$
|
(190.0
|
)
|
|
$
|
(289.8
|
)
|
|
$
|
(52.7
|
)
|
|
$
|
(342.5
|
)
|
(a)
|
The pro forma
decreases
in cable subscription revenue related to changes in the average numbers of
RGU
s are attributable to declines in the average numbers of basic video and fixed-line telephony
RGU
s that were only partially offset by increases in the average numbers of broadband internet and, for the six-month comparison, enhanced video
RGU
s. During the three-month period, the average number of enhanced video
RGU
s declined on a pro forma basis.
|
(b)
|
The pro forma
changes
in cable subscription revenue related to changes in
ARPU
are due to the net effect of (i) improvements in
RGU
mix and (ii) net decreases primarily resulting from the following factors: (a) lower
ARPU
due to decreases in fixed-line telephony call volumes, (b) higher
ARPU
due to the impact of lower discounts, (c) higher
ARPU
due to the impact of price increases in March 2015 and October 2014, partially offset by the impact of increases in the proportions of subscribers receiving lower-priced tiers of broadband internet and digital video services in the Netherlands’ bundles
and (d) lower
ARPU
from incremental digital video services.
|
(c)
|
The pro forma
increases
in mobile subscription revenue are primarily due to increases in the average number of mobile subscribers.
|
(d)
|
The pro forma
decreases
in
B2B
revenue are primarily due to lower revenue from voice services.
|
(e)
|
The pro forma
decreases
in other non-subscription revenue are primarily due to (i) lower revenue due to the impact of a
Ziggo
parter network agreement that was terminated shortly after the
Ziggo Acquisition
and (ii) lower revenue from set-top box sales due to an increased emphasis on the rental, as opposed to the sale, of set-top boxes.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue (a)
|
|
Non-subscription
revenue (b)
|
|
Total
|
|
Subscription
revenue (a)
|
|
Non-subscription
revenue (b)
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (c)
|
$
|
21.0
|
|
|
$
|
—
|
|
|
$
|
21.0
|
|
|
$
|
46.0
|
|
|
$
|
—
|
|
|
$
|
46.0
|
|
ARPU (d)
|
22.9
|
|
|
—
|
|
|
22.9
|
|
|
43.3
|
|
|
—
|
|
|
43.3
|
|
||||||
Total increase in cable subscription revenue
|
43.9
|
|
|
—
|
|
|
43.9
|
|
|
89.3
|
|
|
—
|
|
|
89.3
|
|
||||||
Decrease in mobile subscription revenue
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total increase (decrease) in subscription revenue
|
43.9
|
|
|
(0.5
|
)
|
|
43.4
|
|
|
89.3
|
|
|
—
|
|
|
89.3
|
|
||||||
Increase in B2B revenue (e)
|
—
|
|
|
2.9
|
|
|
2.9
|
|
|
—
|
|
|
3.1
|
|
|
3.1
|
|
||||||
Decrease in other non-subscription revenue (f)
|
—
|
|
|
(3.1
|
)
|
|
(3.1
|
)
|
|
—
|
|
|
(17.5
|
)
|
|
(17.5
|
)
|
||||||
Total organic increase (decrease)
|
43.9
|
|
|
(0.7
|
)
|
|
43.2
|
|
|
89.3
|
|
|
(14.4
|
)
|
|
74.9
|
|
||||||
Impact of FX
|
(129.2
|
)
|
|
(11.8
|
)
|
|
(141.0
|
)
|
|
(247.9
|
)
|
|
(22.8
|
)
|
|
(270.7
|
)
|
||||||
Total
|
$
|
(85.3
|
)
|
|
$
|
(12.5
|
)
|
|
$
|
(97.8
|
)
|
|
$
|
(158.6
|
)
|
|
$
|
(37.2
|
)
|
|
$
|
(195.8
|
)
|
(a)
|
Subscription revenue includes revenue from multi-year bulk agreements with landlords or housing associations or with third parties that operate and administer the in-building networks on behalf of housing associations. These bulk agreements, which generally allow for the procurement of the basic video signals at volume-based discounts, provide access to approximately two-thirds of Germany’s video subscribers. Germany’s bulk agreements are, to a significant extent, medium- and long-term contracts. As of
June 30, 2015
, bulk agreements covering approximately 35% of the video subscribers that Germany serves through these agreements expire by the end of 2016
or are terminable on 30-days notice. During the three months ended
June 30, 2015
, Germany’s 20 largest bulk agreement accounts generated approximately 8% of its total revenue (including estimated amounts billed directly to the building occupants for digital video, broadband internet and fixed-line telephony services). No assurance can be given that Germany’s bulk agreements will be renewed or extended on financially equivalent terms or at all.
|
(b)
|
Other non-subscription revenue includes fees received for the carriage of certain channels included in Germany’s basic and enhanced video offerings. This carriage fee revenue is subject to contracts that expire or are otherwise terminable by either party on various dates ranging from 2015 through 2018. The aggregate amount of revenue related to these carriage contracts represented approximately 4% of Germany’s total revenue during the three months ended
June 30, 2015
. No assurance can be given that these contracts will be renewed or extended on financially equivalent terms, or at all. Also, our ability to increase the aggregate carriage fees that Germany receives for each channel is limited through 2016 by certain commitments we made to regulators in connection with the acquisition of
KBW
.
|
(c)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are attributable to increases in the average numbers of broadband internet, fixed-line telephony and enhanced video
RGU
s that were only partially offset by declines in the average number of basic video
RGU
s.
|
(d)
|
The
increases
in cable subscription revenue related to changes in
ARPU
are due to (i) net increases primarily resulting from the following factors: (a) higher
ARPU
due to the impact of price increases in February 2015, November 2014 and September 2014 for broadband internet and video services, partially offset by increases in the proportions of subscribers receiving lower-priced tiers of services in Germany’s bundles, (b) lower
ARPU
from incremental digital video services, (c) lower
ARPU
from basic video services, primarily due to the net effect of (1) higher proportions of customers receiving discounted basic video services through certain bulk agreements and (2) higher rates, and (d) higher
ARPU
from fixed-
|
(e)
|
The
increases
in
B2B
revenue are primarily due to higher revenue from data and voice services.
|
(f)
|
The
decreases
in other non-subscription revenue are due to (i) decreases in interconnect revenue of $1.4 million and $2.5 million, respectively, and (ii) net decreases resulting from individually insignificant changes in other non-subscription revenue categories. In addition, the decrease
for the six-month comparison includes the unfavorable impact of $11.9 million of nonrecurring network usage revenue recorded during the first quarter of 2014 that was related to the settlement of prior period amounts.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
10.4
|
|
|
$
|
—
|
|
|
$
|
10.4
|
|
|
$
|
22.3
|
|
|
$
|
—
|
|
|
$
|
22.3
|
|
ARPU (b)
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
16.0
|
|
|
—
|
|
|
16.0
|
|
||||||
Total increase in cable subscription revenue
|
15.4
|
|
|
—
|
|
|
15.4
|
|
|
38.3
|
|
|
—
|
|
|
38.3
|
|
||||||
Increase in mobile subscription revenue (c)
|
9.9
|
|
|
—
|
|
|
9.9
|
|
|
18.2
|
|
|
—
|
|
|
18.2
|
|
||||||
Total increase in subscription revenue
|
25.3
|
|
|
—
|
|
|
25.3
|
|
|
56.5
|
|
|
—
|
|
|
56.5
|
|
||||||
Increase in B2B revenue (d)
|
—
|
|
|
6.3
|
|
|
6.3
|
|
|
—
|
|
|
10.0
|
|
|
10.0
|
|
||||||
Increase in other non-subscription revenue (e)
|
—
|
|
|
5.7
|
|
|
5.7
|
|
|
—
|
|
|
8.2
|
|
|
8.2
|
|
||||||
Total organic increase
|
25.3
|
|
|
12.0
|
|
|
37.3
|
|
|
56.5
|
|
|
18.2
|
|
|
74.7
|
|
||||||
Impact of FX
|
(99.8
|
)
|
|
(19.6
|
)
|
|
(119.4
|
)
|
|
(192.9
|
)
|
|
(35.4
|
)
|
|
(228.3
|
)
|
||||||
Total
|
$
|
(74.5
|
)
|
|
$
|
(7.6
|
)
|
|
$
|
(82.1
|
)
|
|
$
|
(136.4
|
)
|
|
$
|
(17.2
|
)
|
|
$
|
(153.6
|
)
|
(a)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are attributable to increases in the average numbers of fixed-line telephony, broadband internet and enhanced video
RGU
s that were only partially offset by declines in the average number of basic video
RGU
s.
|
(b)
|
The
increases
in cable subscription revenue related to changes in
ARPU
are due to (i) net increases primarily resulting from the following factors: (a) higher
ARPU
due to (1) the impact of increases in the proportions of subscribers receiving higher-priced tiers of service in Belgium’s current bundles and migrations to higher-priced bundle offerings and (2) February 2015 price increases for certain existing broadband internet, video and fixed-line telephony services and (b) lower
ARPU
due to the impact of higher bundling and promotional discounts and
(ii) improvements in
RGU
mix.
|
(c)
|
The
increases
in mobile subscription revenue are primarily due to the net effect of (i) increases in the average number of mobile subscribers and (ii) lower
ARPU
primarily due to reductions in billable usage.
|
(d)
|
The
increases
in
B2B
revenue are primarily due to higher revenue from (i) information technology security services and related equipment sales and (ii) broadband internet services.
|
(e)
|
The
increases
in other non-subscription revenue are primarily due to the net effect of (i) increases in interconnect revenue of $2.7 million and $6.7 million, respectively, primarily attributable to the net effect of (a) growth in mobile customers and (b) lower
SMS
usage, (ii) decreases in set-top box sales of $2.1 million and $2.8 million, respectively, primarily due to a digital cable migration completed during the third quarter of 2014, and (iii) increases in mobile handset sales of $3.0 million and $2.5 million, respectively. The increases in Belgium’s mobile handset sales, which typically generate relatively low margins, are primarily due to increases in sales to third-party retailers.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
3.4
|
|
|
$
|
—
|
|
|
$
|
3.4
|
|
|
$
|
8.7
|
|
|
$
|
—
|
|
|
$
|
8.7
|
|
ARPU (b)
|
4.2
|
|
|
—
|
|
|
4.2
|
|
|
10.7
|
|
|
—
|
|
|
10.7
|
|
||||||
Total increase in cable subscription revenue
|
7.6
|
|
|
—
|
|
|
7.6
|
|
|
19.4
|
|
|
—
|
|
|
19.4
|
|
||||||
Increase in mobile subscription revenue (c)
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
||||||
Total increase in subscription revenue
|
9.7
|
|
|
—
|
|
|
9.7
|
|
|
22.9
|
|
|
—
|
|
|
22.9
|
|
||||||
Increase in B2B revenue (d)
|
—
|
|
|
2.3
|
|
|
2.3
|
|
|
—
|
|
|
6.0
|
|
|
6.0
|
|
||||||
Increase in other non-subscription revenue
|
—
|
|
|
0.9
|
|
|
0.9
|
|
|
—
|
|
|
1.7
|
|
|
1.7
|
|
||||||
Total organic increase
|
9.7
|
|
|
3.2
|
|
|
12.9
|
|
|
22.9
|
|
|
7.7
|
|
|
30.6
|
|
||||||
Impact of an acquisition
|
1.9
|
|
|
(0.1
|
)
|
|
1.8
|
|
|
3.9
|
|
|
(0.3
|
)
|
|
3.6
|
|
||||||
Impact of FX
|
(34.9
|
)
|
|
(7.7
|
)
|
|
(42.6
|
)
|
|
(70.9
|
)
|
|
(15.7
|
)
|
|
(86.6
|
)
|
||||||
Total
|
$
|
(23.3
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
(27.9
|
)
|
|
$
|
(44.1
|
)
|
|
$
|
(8.3
|
)
|
|
$
|
(52.4
|
)
|
(a)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are attributable to increases in the average numbers of broadband internet, fixed-line telephony and enhanced video
RGU
s that were largely offset by declines in the average number of basic video
RGU
s.
|
(b)
|
The
increases
in cable subscription revenue related to changes in
ARPU
are primarily due to increases in Switzerland, as Austria’s
ARPU
increased only slightly. The increases in
ARPU
in Switzerland are due to (i) improvements in
RGU
mix and (ii) net increases primarily resulting from the following factors:
(a) higher
ARPU
due to price increases in March 2015, January 2015 and, for the six-month comparison, April 2014 for certain broadband internet, video and fixed-line telephony services,
(b) lower
ARPU
due to the impact of increases in the proportion of subscribers receiving lower-priced tiers of broadband internet services in Switzerland’s bundles,
(c) lower
ARPU
due to the impact of higher bundling discounts and (d) lower
ARPU
due to decreases in fixed-line telephony call volumes. The increases in
ARPU
in Austria are
primarily due to the net effect of (1) higher
ARPU
due to January 2015 price increases for video and broadband internet services and (2) lower
ARPU
due to the impact of higher bundling discounts.
|
(c)
|
The
increases
in mobile subscription revenue are primarily due to increases in the average number of mobile subscribers in Switzerland. Switzerland’s mobile services were launched during the second quarter of 2014.
|
(d)
|
The
increases
in
B2B
revenue are primarily due to higher revenue from voice and data services in Switzerland.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase (decrease) in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
8.2
|
|
|
$
|
—
|
|
|
$
|
8.2
|
|
|
$
|
16.6
|
|
|
$
|
—
|
|
|
$
|
16.6
|
|
ARPU (b)
|
(5.8
|
)
|
|
—
|
|
|
(5.8
|
)
|
|
(12.1
|
)
|
|
—
|
|
|
(12.1
|
)
|
||||||
Total increase in cable subscription revenue
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|
4.5
|
|
|
—
|
|
|
4.5
|
|
||||||
Increase in mobile subscription revenue
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||||
Total increase in subscription revenue
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|
4.9
|
|
|
—
|
|
|
4.9
|
|
||||||
Increase in B2B revenue (c)
|
—
|
|
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
3.2
|
|
|
3.2
|
|
||||||
Increase (decrease) in other non-subscription revenue
|
—
|
|
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|
(1.1
|
)
|
|
(1.1
|
)
|
||||||
Total organic increase
|
2.7
|
|
|
1.8
|
|
|
4.5
|
|
|
4.9
|
|
|
2.1
|
|
|
7.0
|
|
||||||
Impact of FX
|
(56.2
|
)
|
|
(5.6
|
)
|
|
(61.8
|
)
|
|
(109.6
|
)
|
|
(10.4
|
)
|
|
(120.0
|
)
|
||||||
Total
|
$
|
(53.5
|
)
|
|
$
|
(3.8
|
)
|
|
$
|
(57.3
|
)
|
|
$
|
(104.7
|
)
|
|
$
|
(8.3
|
)
|
|
$
|
(113.0
|
)
|
(a)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are primarily attributable to the net effect of
(i) increases in the average numbers of enhanced video, broadband internet and fixed-line telephony
RGU
s in Poland, Romania, Hungary and Slovakia, (ii) declines in the average number of basic video
RGU
s in Poland, Romania, Hungary and Slovakia, (iii) declines in the average numbers of fixed-line telephony and enhanced video
RGU
s in the Czech Republic and (iv) increases in the average number of
RGU
s at
UPC DTH
.
|
(b)
|
The
decreases
in cable subscription revenue related to changes in
ARPU
are due to the net effect of (i) net decreases primarily resulting from the following factors: (a) lower
ARPU
due to the impact of higher bundling discounts, primarily in Hungary, Poland and Romania, and (b) lower
ARPU
resulting from the impact of a January 1, 2015 change in how
VAT
is calculated for
UPC DTH
’s operations in Hungary, the Czech Republic and Slovakia, which reduced
UPC DTH
’s revenue by $4.3 million and $8.5 million, respectively, and (ii) improvements in
RGU
mix.
|
(c)
|
The
increases
in
B2B
revenue are primarily due to higher revenue from voice services in Poland.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
5.4
|
|
|
$
|
—
|
|
|
$
|
5.4
|
|
|
$
|
11.2
|
|
|
$
|
—
|
|
|
$
|
11.2
|
|
ARPU (b)
|
5.8
|
|
|
—
|
|
|
5.8
|
|
|
8.2
|
|
|
—
|
|
|
8.2
|
|
||||||
Total increase in cable subscription revenue
|
11.2
|
|
|
—
|
|
|
11.2
|
|
|
19.4
|
|
|
—
|
|
|
19.4
|
|
||||||
Increase in mobile subscription revenue (c)
|
4.6
|
|
|
—
|
|
|
4.6
|
|
|
8.9
|
|
|
—
|
|
|
8.9
|
|
||||||
Total increase in subscription revenue
|
15.8
|
|
|
—
|
|
|
15.8
|
|
|
28.3
|
|
|
—
|
|
|
28.3
|
|
||||||
Increase (decrease) in non-subscription revenue (d)
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|
—
|
|
|
(1.3
|
)
|
|
(1.3
|
)
|
||||||
Total organic increase (decrease)
|
15.8
|
|
|
0.5
|
|
|
16.3
|
|
|
28.3
|
|
|
(1.3
|
)
|
|
27.0
|
|
||||||
Impact of FX
|
(23.4
|
)
|
|
(1.9
|
)
|
|
(25.3
|
)
|
|
(49.6
|
)
|
|
(2.9
|
)
|
|
(52.5
|
)
|
||||||
Total
|
$
|
(7.6
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(9.0
|
)
|
|
$
|
(21.3
|
)
|
|
$
|
(4.2
|
)
|
|
$
|
(25.5
|
)
|
(a)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are attributable to increases in the average numbers of broadband internet and enhanced video
RGU
s that were only partially offset by declines in the average number of basic video and fixed-line telephony
RGU
s.
|
(b)
|
The
increases
in cable subscription revenue related to changes in
ARPU
are due to (i) net increases resulting from the following factors: (a) lower
ARPU
due to the impact of higher promotional and bundling discounts, (b) higher
ARPU
due to semi-annual inflation and other price adjustments for video, broadband internet and fixed-line telephony services, (c) higher
ARPU
due to the inclusion of higher-priced tiers of broadband internet and fixed-line telephony services in Chile’s bundles, (d) higher
ARPU
from incremental digital video services and (e) for the six-month comparison, lower fixed-line telephony
ARPU
resulting from a $2.5 million adjustment recorded during the first quarter of 2015 to reflect the retroactive application of a proposed tariff on ancillary services provided directly to customers from July 2013 through February 2014 and (ii) improvements in
RGU
mix.
|
(c)
|
The
increases
in mobile subscription revenue are attributable to increases in (i) the average number of postpaid subscribers, which more than offset decreases in the average number of prepaid subscribers, and (ii) mobile
ARPU
, primarily due to higher proportions of mobile subscribers on postpaid plans, which generate higher
ARPU
than prepaid plans.
|
(d)
|
The
changes
in non-subscription revenue are primarily due to the net effect of (i) decreases in interconnect revenue and (ii) increases in installation revenue. The decreases in interconnect revenue include the impact of a proposed tariff reduction on fixed-line termination rates and, for the six-month comparison, a $1.4 million adjustment recorded during the first quarter of 2015 to reflect the retroactive application of this tariff reduction for the period from June 2012 through December 2014.
|
|
Three-month period
|
|
Six-month period
|
||||||||||||||||||||
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
|
Subscription
revenue
|
|
Non-subscription
revenue
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
Increase (decrease) in cable subscription revenue due to change in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average number of RGUs (a)
|
$
|
5.8
|
|
|
$
|
—
|
|
|
$
|
5.8
|
|
|
$
|
12.1
|
|
|
$
|
—
|
|
|
$
|
12.1
|
|
ARPU (b)
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
(3.7
|
)
|
|
—
|
|
|
(3.7
|
)
|
||||||
Total increase in cable subscription revenue
|
5.3
|
|
|
—
|
|
|
5.3
|
|
|
8.4
|
|
|
—
|
|
|
8.4
|
|
||||||
Increase in B2B revenue
|
—
|
|
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|
1.3
|
|
|
1.3
|
|
||||||
Increase in other non-subscription revenue
|
—
|
|
|
0.7
|
|
|
0.7
|
|
|
—
|
|
|
1.2
|
|
|
1.2
|
|
||||||
Total organic increase
|
5.3
|
|
|
1.3
|
|
|
6.6
|
|
|
8.4
|
|
|
2.5
|
|
|
10.9
|
|
||||||
Impact of the Choice Acquisition
|
6.7
|
|
|
0.7
|
|
|
7.4
|
|
|
6.7
|
|
|
0.7
|
|
|
7.4
|
|
||||||
Total
|
$
|
12.0
|
|
|
$
|
2.0
|
|
|
$
|
14.0
|
|
|
$
|
15.1
|
|
|
$
|
3.2
|
|
|
$
|
18.3
|
|
(a)
|
The
increases
in cable subscription revenue related to changes in the average numbers of
RGU
s are attributable to increases in the average numbers of fixed-line telephony, broadband internet and enhanced video
RGU
s.
|
(b)
|
The
decreases
in cable subscription revenue related to changes in
ARPU
are due to the net effect of (i) adverse changes in
RGU
mix and (ii) a net increase for the three-month comparison and a net decrease for the six-month comparison resulting from the following factors:
(a) lower
ARPU
due to the impact of bundling discounts, (b) higher
ARPU
due to the impact of price increases in March 2015 for digital video and broadband internet services and (c) for the six-month comparison, lower
ARPU
due to an increase in the proportion of subscribers receiving lower-priced tiers of digital video and broadband internet services in Puerto Rico’s bundles.
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
724.1
|
|
|
$
|
813.4
|
|
|
$
|
(89.3
|
)
|
|
(11.0
|
)
|
|
(0.1
|
)
|
The Netherlands (a)
|
218.7
|
|
|
90.5
|
|
|
128.2
|
|
|
141.7
|
|
|
5.7
|
|
|||
Germany
|
135.3
|
|
|
158.3
|
|
|
(23.0
|
)
|
|
(14.5
|
)
|
|
6.0
|
|
|||
Belgium
|
185.5
|
|
|
228.6
|
|
|
(43.1
|
)
|
|
(18.9
|
)
|
|
0.5
|
|
|||
Switzerland/Austria
|
125.7
|
|
|
135.3
|
|
|
(9.6
|
)
|
|
(7.1
|
)
|
|
2.1
|
|
|||
Total Western Europe
|
1,389.3
|
|
|
1,426.1
|
|
|
(36.8
|
)
|
|
(2.6
|
)
|
|
1.3
|
|
|||
Central and Eastern Europe
|
107.6
|
|
|
131.3
|
|
|
(23.7
|
)
|
|
(18.1
|
)
|
|
0.8
|
|
|||
Central and other
|
23.9
|
|
|
14.4
|
|
|
9.5
|
|
|
66.0
|
|
|
104.8
|
|
|||
Total European Operations Division
|
1,520.8
|
|
|
1,571.8
|
|
|
(51.0
|
)
|
|
(3.2
|
)
|
|
2.2
|
|
|||
Corporate and other
|
13.6
|
|
|
16.3
|
|
|
(2.7
|
)
|
|
(16.6
|
)
|
|
1.6
|
|
|||
Intersegment eliminations
|
(7.7
|
)
|
|
(7.5
|
)
|
|
(0.2
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
1,526.7
|
|
|
1,580.6
|
|
|
(53.9
|
)
|
|
(3.4
|
)
|
|
2.1
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
96.7
|
|
|
102.0
|
|
|
(5.3
|
)
|
|
(5.2
|
)
|
|
5.4
|
|
|||
Puerto Rico (b)
|
39.7
|
|
|
33.0
|
|
|
6.7
|
|
|
20.3
|
|
|
10.0
|
|
|||
Total LiLAC Group
|
136.4
|
|
|
135.0
|
|
|
1.4
|
|
|
1.0
|
|
|
6.7
|
|
|||
Total operating expenses excluding share-based compensation expense
|
1,663.1
|
|
|
1,715.6
|
|
|
(52.5
|
)
|
|
(3.1
|
)
|
|
2.4
|
|
|||
Share-based compensation expense
|
1.4
|
|
|
3.6
|
|
|
(2.2
|
)
|
|
(61.1
|
)
|
|
|
||||
Total
|
$
|
1,664.5
|
|
|
$
|
1,719.2
|
|
|
$
|
(54.7
|
)
|
|
(3.2
|
)
|
|
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
1,448.5
|
|
|
$
|
1,630.7
|
|
|
$
|
(182.2
|
)
|
|
(11.2
|
)
|
|
(0.8
|
)
|
The Netherlands (a)
|
444.3
|
|
|
186.6
|
|
|
257.7
|
|
|
138.1
|
|
|
8.7
|
|
|||
Germany
|
279.6
|
|
|
320.3
|
|
|
(40.7
|
)
|
|
(12.7
|
)
|
|
7.1
|
|
|||
Belgium
|
389.0
|
|
|
435.1
|
|
|
(46.1
|
)
|
|
(10.6
|
)
|
|
9.5
|
|
|||
Switzerland/Austria
|
250.7
|
|
|
270.6
|
|
|
(19.9
|
)
|
|
(7.4
|
)
|
|
1.9
|
|
|||
Total Western Europe
|
2,812.1
|
|
|
2,843.3
|
|
|
(31.2
|
)
|
|
(1.1
|
)
|
|
2.6
|
|
|||
Central and Eastern Europe
|
217.5
|
|
|
254.4
|
|
|
(36.9
|
)
|
|
(14.5
|
)
|
|
4.6
|
|
|||
Central and other
|
41.8
|
|
|
30.7
|
|
|
11.1
|
|
|
36.2
|
|
|
68.2
|
|
|||
Total European Operations Division
|
3,071.4
|
|
|
3,128.4
|
|
|
(57.0
|
)
|
|
(1.8
|
)
|
|
3.4
|
|
|||
Corporate and other
|
27.5
|
|
|
32.1
|
|
|
(4.6
|
)
|
|
(14.3
|
)
|
|
4.8
|
|
|||
Intersegment eliminations
|
(15.8
|
)
|
|
(18.1
|
)
|
|
2.3
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
3,083.1
|
|
|
3,142.4
|
|
|
(59.3
|
)
|
|
(1.9
|
)
|
|
3.4
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
189.9
|
|
|
203.4
|
|
|
(13.5
|
)
|
|
(6.6
|
)
|
|
4.7
|
|
|||
Puerto Rico (b)
|
75.3
|
|
|
67.4
|
|
|
7.9
|
|
|
11.7
|
|
|
6.7
|
|
|||
Total LiLAC Group
|
265.2
|
|
|
270.8
|
|
|
(5.6
|
)
|
|
(2.1
|
)
|
|
5.2
|
|
|||
Inter-group eliminations
|
—
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total operating expenses excluding share-based compensation expense
|
3,348.3
|
|
|
3,413.1
|
|
|
(64.8
|
)
|
|
(1.9
|
)
|
|
3.5
|
|
|||
Share-based compensation expense
|
2.1
|
|
|
4.9
|
|
|
(2.8
|
)
|
|
(57.1
|
)
|
|
|
||||
Total
|
$
|
3,350.4
|
|
|
$
|
3,418.0
|
|
|
$
|
(67.6
|
)
|
|
(2.0
|
)
|
|
|
(a)
|
The amounts presented for the 2014 periods exclude the operating expenses of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amounts presented for the 2015 periods include the post-acquisition operating expenses of
Choice
, which was acquired on
June 3, 2015
.
|
•
|
Increases in programming and copyright costs of $44.5 million or 9.1% and $97.6 million or 10.1%, respectively, primarily due to increases in
U.K./Ireland
related to higher costs for certain premium and basic content and, to a much lesser extent, increases in Germany and
Switzerland/Austria
due to growth in the numbers of enhanced video subscribers and higher costs for certain premium content. The increases in programming and copyright costs also include the net impacts of certain nonrecurring adjustments of $11.6 million and $29.6 million, respectively, related to the settlement or reassessment of operational contingencies. The nonrecurring adjustments recorded during 2015 resulted in lower costs of $2.6 million in
Switzerland/Austria
, $2.5 million in Belgium and $1.7 million in
U.K./Ireland
during the first quarter of 2015. The nonrecurring adjustments recorded during 2014 resulted in lower costs of (i) $17.5 million in Belgium and $7.3 million in Poland during the first quarter of 2014 and (ii) $11.6 million in
U.K./Ireland
during the second quarter of 2014. As a result of a new programming contract signed by Virgin Media, we anticipate that, beginning on August 1, 2015, Virgin Media will experience a meaningful increase in its programming costs. While Virgin Media expects to be able to pass on a substantial portion of this cost increase to its subscribers through a recently-announced rate increase that will become effective in September 2015, no assurance can be given that this will be the case;
|
•
|
Decreases in network-related expenses of $20.1 million or 9.6% and $42.1 million or 9.7%, respectively, due in part to the impact of a reduction in local authority charges for certain elements of network infrastructure in the U.K. resulting in (i) non-recurring benefits during the first and second quarters of 2015 of $8.9 million and $11.8 million, respectively,
and (ii) recurring benefits of $6.0 million and $6.7 million during the first and second quarters of 2015, respectively, arising from successful appeals during the last half of 2014 and the first half of 2015. The decreases in network-related expenses also include
(a) a $5.0 million non-recurring decrease for each comparison associated with the reassessment of an accrual in
U.K./Ireland
during the second quarter of 2015, (b) lower outsourced labor costs associated with customer-facing activities in
U.K./Ireland
, (c) increases in network maintenance costs, primarily in the
European Operations Division
’s central operations, and (d) increases in third-party costs incurred in the Netherlands of $1.0 million and $3.0 million, respectively, related to the harmonization of the Ziggo and
UPC Nederland
networks following the
Ziggo Acquisition
. In addition, the decrease for the six-month comparison includes (1) a decrease in network and customer premises equipment maintenance costs, primarily in Belgium, and (2) a $1.8 million decrease due to the impact of an accrual release in the first quarter of 2015 associated with the reassessment of an operational contingency in
U.K./Ireland
;
|
•
|
Increases in outsourced labor and professional fees of $7.4 million or 8.4% and $31.4 million or 17.3%, respectively, due to the net effect of (i) higher call center costs in the Netherlands and Belgium, (ii) higher consulting costs, primarily in Belgium and Germany, and (iii) for the three-month comparison, lower call center costs in U.K./Ireland and Germany. The higher call center costs in the Netherlands represent third-party costs that are primarily related to network and product harmonization activities following the Ziggo Acquisition that, together with certain other third-party customer care costs, accounted for increases of $4.0 million and $16.4 million, respectively;
|
•
|
Increases in mobile handset costs of $10.3 million and $21.4 million, respectively, largely due to the net impact of (i) increases in the proportion of higher value handsets sold in
U.K./Ireland
, due in part to the
Freestyle Mobile Proposition
, (ii) decreases in costs as a result of continued growth of subscriber identification module or “SIM”-only contracts in
U.K./Ireland
and (iii) increases in mobile handset sales to third-party retailers, primarily in
Switzerland/Austria
. In addition, the increase for the six-month comparison includes higher costs associated with subscriber promotions involving free or heavily-discounted handsets in Belgium;
|
•
|
Increases
in information technology-related expenses of $8.6 million and $14.6 million, respectively, due to higher software and other information technology-related service and maintenance costs in
U.K./Ireland
and the
European Operations Division
’s central operations;
|
•
|
An increase (decrease) in bad debt and collection expense of $1.9 million or 5.6% and ($4.2 million) or (5.6%), respectively, primarily due to (i) decreases in
U.K./Ireland
and Poland and (ii) for the three-month comparison, increases in the Netherlands, Belgium and Germany;
|
•
|
An increase (decrease) in mobile access and interconnect costs of ($8.1 million) or (3.2%)
and $4.1 million or 0.8%, respectively,
primarily due to the net effect of
(i) increased costs in
U.K./Ireland
and Belgium attributable to mobile subscriber growth, (ii) lower fixed-line telephony call volumes in
U.K./Ireland
and, to a lesser extent, the Netherlands and (iii) for the six-month comparison, a $2.7 million increase in Belgium due to the impact of an accrual release in the first quarter of 2014 associated with the reassessment of an operational contingency. In addition, the decrease for the three-month comparison includes a decline resulting from lower rates in
U.K./Ireland
; and
|
•
|
A decrease of $3.5 million during each period due to an accrual release recorded in
U.K./Ireland
during the second quarter of 2015 related to the settlement of an operational contingency.
|
•
|
Increases in programming and copyright costs of $7.0 million or 12.0% and $11.8 million or 10.0%, respectively, primarily associated with (i) increases in Chile and, to a lesser extent, Puerto Rico, due to growth in the numbers of enhanced video subscribers and, in the case of Puerto Rico, increased costs for certain content and (ii) increases of $1.0 million and $2.2 million, respectively, arising from foreign currency exchange rate fluctuations with respect to Chile’s
U.S.
dollar denominated programming contracts. During the
three and six months ended June 30, 2015
, $15.9 million or 44.5% and $25.5 million or 36.7%, respectively, of Chile’s programming costs were denominated in
U.S.
dollars;
|
•
|
Decreases in personnel costs of $2.0 million or 13.4% and $3.4 million or 11.2%, respectively, largely due to (i) lower incentive compensation costs in Chile and (ii) decreased costs related to higher proportions of capitalizable activities in Chile;
|
•
|
Increases in outsourced labor and professional fees of $0.6 million or 7.7% and $2.0 million or 12.7%, respectively, primarily due to higher call center costs in Chile; and
|
•
|
Increases in mobile access and interconnect costs of $1.2 million or 6.4% and $1.5 million or 4.1%, respectively, primarily attributable to the net effect of (i) decreases of $0.8 million and $3.2 million, respectively, in mobile access charges in Chile due to a February 2015 tariff decline that was retroactive to May 2014, including decreases of $0.7 million and $2.5 million, respectively, related to 2014 access charges, (ii) increases in Chile related to (a) higher roaming costs due to the impact of increased volumes and (b) higher interconnect costs resulting from increased rates and call volumes and (iii) increases in Puerto Rico related to additional capacity agreements with third-party internet providers.
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
229.9
|
|
|
$
|
253.8
|
|
|
$
|
(23.9
|
)
|
|
(9.4
|
)
|
|
0.2
|
|
The Netherlands (a)
|
94.2
|
|
|
40.7
|
|
|
53.5
|
|
|
131.4
|
|
|
(11.3
|
)
|
|||
Germany
|
88.8
|
|
|
99.5
|
|
|
(10.7
|
)
|
|
(10.8
|
)
|
|
10.6
|
|
|||
Belgium
|
54.0
|
|
|
65.9
|
|
|
(11.9
|
)
|
|
(18.1
|
)
|
|
1.5
|
|
|||
Switzerland/Austria
|
63.4
|
|
|
64.0
|
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|
8.7
|
|
|||
Total Western Europe
|
530.3
|
|
|
523.9
|
|
|
6.4
|
|
|
1.2
|
|
|
2.5
|
|
|||
Central and Eastern Europe
|
41.2
|
|
|
46.0
|
|
|
(4.8
|
)
|
|
(10.4
|
)
|
|
9.8
|
|
|||
Central and other
|
47.8
|
|
|
56.3
|
|
|
(8.5
|
)
|
|
(15.1
|
)
|
|
10.2
|
|
|||
Total European Operations Division
|
619.3
|
|
|
626.2
|
|
|
(6.9
|
)
|
|
(1.1
|
)
|
|
3.7
|
|
|||
Corporate and other
|
51.5
|
|
|
60.9
|
|
|
(9.4
|
)
|
|
(15.4
|
)
|
|
(9.1
|
)
|
|||
Intersegment eliminations
|
0.2
|
|
|
1.5
|
|
|
(1.3
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
671.0
|
|
|
688.6
|
|
|
(17.6
|
)
|
|
(2.6
|
)
|
|
2.4
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
36.5
|
|
|
42.0
|
|
|
(5.5
|
)
|
|
(13.1
|
)
|
|
(3.1
|
)
|
|||
Puerto Rico (b)
|
10.1
|
|
|
10.2
|
|
|
(0.1
|
)
|
|
(1.0
|
)
|
|
(11.3
|
)
|
|||
Total LiLAC Division
|
46.6
|
|
|
52.2
|
|
|
(5.6
|
)
|
|
(10.7
|
)
|
|
(4.3
|
)
|
|||
Corporate and other
|
0.8
|
|
|
0.9
|
|
|
(0.1
|
)
|
|
(11.1
|
)
|
|
(11.1
|
)
|
|||
Total LiLAC Group
|
47.4
|
|
|
53.1
|
|
|
(5.7
|
)
|
|
(10.7
|
)
|
|
(4.4
|
)
|
|||
Total SG&A expenses excluding share-based compensation expense
|
718.4
|
|
|
741.7
|
|
|
(23.3
|
)
|
|
(3.1
|
)
|
|
1.9
|
|
|||
Share-based compensation expense
|
55.2
|
|
|
50.8
|
|
|
4.4
|
|
|
8.7
|
|
|
|
||||
Total
|
$
|
773.6
|
|
|
$
|
792.5
|
|
|
$
|
(18.9
|
)
|
|
(2.4
|
)
|
|
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
453.6
|
|
|
$
|
492.4
|
|
|
$
|
(38.8
|
)
|
|
(7.9
|
)
|
|
1.6
|
|
The Netherlands (a)
|
208.1
|
|
|
79.4
|
|
|
128.7
|
|
|
162.1
|
|
|
9.0
|
|
|||
Germany
|
178.4
|
|
|
204.4
|
|
|
(26.0
|
)
|
|
(12.7
|
)
|
|
7.2
|
|
|||
Belgium
|
106.2
|
|
|
131.5
|
|
|
(25.3
|
)
|
|
(19.2
|
)
|
|
(0.9
|
)
|
|||
Switzerland/Austria
|
128.9
|
|
|
128.1
|
|
|
0.8
|
|
|
0.6
|
|
|
10.7
|
|
|||
Total Western Europe
|
1,075.2
|
|
|
1,035.8
|
|
|
39.4
|
|
|
3.8
|
|
|
4.1
|
|
|||
Central and Eastern Europe
|
81.4
|
|
|
88.6
|
|
|
(7.2
|
)
|
|
(8.1
|
)
|
|
12.4
|
|
|||
Central and other
|
95.0
|
|
|
110.1
|
|
|
(15.1
|
)
|
|
(13.7
|
)
|
|
11.9
|
|
|||
Total European Operations Division
|
1,251.6
|
|
|
1,234.5
|
|
|
17.1
|
|
|
1.4
|
|
|
5.4
|
|
|||
Corporate and other
|
102.5
|
|
|
109.0
|
|
|
(6.5
|
)
|
|
(6.0
|
)
|
|
1.4
|
|
|||
Intersegment eliminations
|
0.5
|
|
|
0.9
|
|
|
(0.4
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
1,354.6
|
|
|
1,344.4
|
|
|
10.2
|
|
|
0.8
|
|
|
5.0
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
76.1
|
|
|
83.2
|
|
|
(7.1
|
)
|
|
(8.5
|
)
|
|
3.0
|
|
|||
Puerto Rico (b)
|
20.0
|
|
|
21.2
|
|
|
(1.2
|
)
|
|
(5.7
|
)
|
|
(10.6
|
)
|
|||
Total LiLAC Division
|
96.1
|
|
|
104.4
|
|
|
(8.3
|
)
|
|
(8.0
|
)
|
|
0.1
|
|
|||
Corporate and other
|
2.1
|
|
|
1.6
|
|
|
0.5
|
|
|
31.3
|
|
|
31.3
|
|
|||
Total LiLAC Group
|
98.2
|
|
|
106.0
|
|
|
(7.8
|
)
|
|
(7.4
|
)
|
|
0.6
|
|
|||
Total SG&A expenses excluding share-based compensation expense
|
1,452.8
|
|
|
1,450.4
|
|
|
2.4
|
|
|
0.2
|
|
|
4.7
|
|
|||
Share-based compensation expense
|
125.9
|
|
|
104.6
|
|
|
21.3
|
|
|
20.4
|
|
|
|
||||
Total
|
$
|
1,578.7
|
|
|
$
|
1,555.0
|
|
|
$
|
23.7
|
|
|
1.5
|
|
|
|
(a)
|
The amounts presented for the 2014 periods exclude the SG&A expenses of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amounts presented for the 2015 periods include the post-acquisition SG&A expenses of
Choice
, which was acquired on
June 3, 2015
.
|
•
|
Increases in sales and marketing costs of $12.7 million or 5.8% and $22.5 million or 5.2%, respectively, primarily due to (i) higher costs associated with advertising campaigns in
Switzerland/Austria
, Belgium,
U.K./Ireland
and Hungary, (ii) higher third-party sales commissions, as increases in Germany more than offset declines in
U.K./Ireland
, and (iii) higher third-party costs in the Netherlands of $3.4 million and $4.9 million, respectively, related to rebranding activities following the Ziggo Acquisition;
|
•
|
Increases in outsourced labor and professional fees of $8.9 million and 24.3% and $15.1 million or 21.8%, respectively, primarily due to the net effect of (i) increased consulting costs associated with scale initiatives in the areas of information technology and finance, primarily in the
European Operations Division
’s central operations, (ii) decreased consulting costs related to strategic initiatives in Germany, (iii) increased consulting costs related to integration activities in the Netherlands of $1.2 million and $2.8 million, respectively, and (iv) decreased legal costs in
U.K./Ireland
;
|
•
|
A decrease of $10.4 million during each period due to an accrual release recorded during the second quarter of 2015 related to the resolution of a contingency associated with universal service obligations in Belgium;
|
•
|
An increase (decrease) in personnel costs of ($1.8 million) or (0.7%) and $10.2 million or 2.0%, respectively, primarily due to the net effect of (i) annual wage increases, primarily in
U.K./Ireland
, (ii) increased staffing levels, primarily in
Switzerland/Austria
and Germany, (iii) higher incentive compensation costs, primarily in Germany and, for the six-month comparison, the
European Operations Division
’s central operations and Belgium, (iv) lower incentive compensation costs, primarily in
U.K./Ireland
and the Netherlands, and (v) higher temporary personnel costs in the Netherlands of $0.5 million and $1.6 million, respectively, related to integration activities in connection with the Ziggo Acquisition;
|
•
|
Increases
in information technology-related expenses of $5.6 million or 14.3% and $9.2 million or 12.4%, respectively, primarily due to the net effect of (i) higher software and other information technology-related maintenance costs, primarily in Germany,
U.K./Ireland
and the
European Operations Division
’s central operations, and (ii) for the six-month comparison, a $2.1 million decrease associated with the reassessment of an accrual in Belgium during the first quarter of 2015;
|
•
|
Increases in facilities expenses of $2.5 million or 5.0% and $3.9 million or 4.0%, respectively, primarily due to higher rent for office and retail space in
Switzerland/Austria
; and
|
•
|
Net increases resulting from individually insignificant changes in other SG&A categories.
|
•
|
An increase (decrease) in sales and marketing costs of ($0.8 million) or (5.2%) and $2.6 million or 8.0%, respectively, primarily due to the net effect of (i) a decrease for the three-month comparison and an increase for the six-month comparison in advertising costs in Chile and (ii) higher third-party sales commissions in Chile;
|
•
|
An increase (decrease) in personnel costs of $0.3 million or 1.5% and ($1.1 million) or (3.2%), respectively. The net decrease for the six-month comparison is primarily due to lower severance and incentive compensation costs in Chile. In addition, individually insignificant changes in various other personnel cost categories impacted both periods;
|
•
|
Decreases of $1.4 million and $0.8 million due to lower costs associated with the national gross receipts tax implemented in Puerto Rico in July 2014. Liberty Puerto Rico recorded the $0.8 million impact of this tax for the first six months of 2014 during the second quarter of 2014, as the tax had retroactive effect to January 1, 2014. During the second quarter of 2015, Liberty Puerto Rico reversed the $0.6 million impact of this tax that was recorded during the first quarter of 2015 after it was determined that the tax would not be continued beyond 2014; and
|
•
|
Decreases in outsourced labor and professional fees of $0.3 million or 9.2% and $0.5 million or 8.0%, respectively. The decrease for the six-month comparison is primarily due to the net effect of (i) lower fees associated with legal proceedings in Puerto Rico and (ii) an increase in consulting costs in Chile.
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
805.6
|
|
|
$
|
829.5
|
|
|
$
|
(23.9
|
)
|
|
(2.9
|
)
|
|
7.7
|
|
The Netherlands (a)
|
371.0
|
|
|
185.1
|
|
|
185.9
|
|
|
100.4
|
|
|
(9.9
|
)
|
|||
Germany
|
366.9
|
|
|
431.0
|
|
|
(64.1
|
)
|
|
(14.9
|
)
|
|
5.4
|
|
|||
Belgium
|
260.8
|
|
|
287.9
|
|
|
(27.1
|
)
|
|
(9.4
|
)
|
|
12.2
|
|
|||
Switzerland/Austria
|
259.7
|
|
|
277.4
|
|
|
(17.7
|
)
|
|
(6.4
|
)
|
|
1.7
|
|
|||
Total Western Europe
|
2,064.0
|
|
|
2,010.9
|
|
|
53.1
|
|
|
2.6
|
|
|
5.4
|
|
|||
Central and Eastern Europe
|
118.4
|
|
|
147.2
|
|
|
(28.8
|
)
|
|
(19.6
|
)
|
|
(0.8
|
)
|
|||
Central and other
|
(72.7
|
)
|
|
(71.9
|
)
|
|
(0.8
|
)
|
|
(1.1
|
)
|
|
(24.2
|
)
|
|||
Total European Operations Division
|
2,109.7
|
|
|
2,086.2
|
|
|
23.5
|
|
|
1.1
|
|
|
4.3
|
|
|||
Corporate and other
|
(52.3
|
)
|
|
(59.6
|
)
|
|
7.3
|
|
|
12.2
|
|
|
4.9
|
|
|||
Total Liberty Global Group
|
2,057.4
|
|
|
2,026.6
|
|
|
30.8
|
|
|
1.5
|
|
|
4.6
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
87.6
|
|
|
85.8
|
|
|
1.8
|
|
|
2.1
|
|
|
13.9
|
|
|||
Puerto Rico (b)
|
40.8
|
|
|
33.4
|
|
|
7.4
|
|
|
22.2
|
|
|
13.3
|
|
|||
Total LiLAC Division
|
128.4
|
|
|
119.2
|
|
|
9.2
|
|
|
7.7
|
|
|
13.7
|
|
|||
Corporate and other
|
(0.8
|
)
|
|
(0.9
|
)
|
|
0.1
|
|
|
11.1
|
|
|
11.1
|
|
|||
Total LiLAC Group
|
127.6
|
|
|
118.3
|
|
|
9.3
|
|
|
7.9
|
|
|
13.9
|
|
|||
Total
|
$
|
2,185.0
|
|
|
$
|
2,144.9
|
|
|
$
|
40.1
|
|
|
1.9
|
|
|
5.1
|
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
European Operations Division:
|
|
|
|
|
|
|
|
|
|
||||||||
U.K./Ireland
|
$
|
1,568.9
|
|
|
$
|
1,621.1
|
|
|
$
|
(52.2
|
)
|
|
(3.2
|
)
|
|
7.0
|
|
The Netherlands (a)
|
738.9
|
|
|
368.4
|
|
|
370.5
|
|
|
100.6
|
|
|
(12.8
|
)
|
|||
Germany
|
730.9
|
|
|
860.0
|
|
|
(129.1
|
)
|
|
(15.0
|
)
|
|
4.4
|
|
|||
Belgium
|
507.8
|
|
|
590.0
|
|
|
(82.2
|
)
|
|
(13.9
|
)
|
|
5.8
|
|
|||
Switzerland/Austria
|
508.5
|
|
|
541.8
|
|
|
(33.3
|
)
|
|
(6.1
|
)
|
|
2.2
|
|
|||
Total Western Europe
|
4,055.0
|
|
|
3,981.3
|
|
|
73.7
|
|
|
1.9
|
|
|
3.8
|
|
|||
Central and Eastern Europe
|
236.5
|
|
|
305.4
|
|
|
(68.9
|
)
|
|
(22.6
|
)
|
|
(5.1
|
)
|
|||
Central and other
|
(140.6
|
)
|
|
(142.8
|
)
|
|
2.2
|
|
|
1.5
|
|
|
(21.5
|
)
|
|||
Total European Operations Division
|
4,150.9
|
|
|
4,143.9
|
|
|
7.0
|
|
|
0.2
|
|
|
2.5
|
|
|||
Corporate and other
|
(104.4
|
)
|
|
(105.1
|
)
|
|
0.7
|
|
|
0.7
|
|
|
(9.0
|
)
|
|||
Intersegment eliminations
|
—
|
|
|
4.0
|
|
|
(4.0
|
)
|
|
N.M.
|
|
|
N.M.
|
|
|||
Total Liberty Global Group
|
4,046.5
|
|
|
4,042.8
|
|
|
3.7
|
|
|
0.1
|
|
|
2.2
|
|
|||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
LiLAC Division:
|
|
|
|
|
|
|
|
|
|
||||||||
Chile
|
163.6
|
|
|
168.5
|
|
|
(4.9
|
)
|
|
(2.9
|
)
|
|
8.9
|
|
|||
Puerto Rico (b)
|
74.3
|
|
|
62.7
|
|
|
11.6
|
|
|
18.5
|
|
|
13.8
|
|
|||
Total LiLAC Division
|
237.9
|
|
|
231.2
|
|
|
6.7
|
|
|
2.9
|
|
|
10.3
|
|
|||
Corporate and other
|
(2.1
|
)
|
|
(1.6
|
)
|
|
(0.5
|
)
|
|
(31.3
|
)
|
|
(31.3
|
)
|
|||
Total LiLAC Group
|
235.8
|
|
|
229.6
|
|
|
6.2
|
|
|
2.7
|
|
|
10.1
|
|
|||
Total
|
$
|
4,282.3
|
|
|
$
|
4,272.4
|
|
|
$
|
9.9
|
|
|
0.2
|
|
|
2.7
|
|
(a)
|
The amounts presented for the 2014 periods exclude the
Adjusted OIBDA
of
Ziggo
, which was acquired on November 11, 2014.
|
(b)
|
The amounts presented for the 2015 periods include the post-acquisition
Adjusted OIBDA
of
Choice
, which was acquired on
June 3, 2015
.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
%
|
||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
European Operations Division:
|
|
|
|
|
|
|
|
U.K./Ireland
|
45.8
|
|
43.7
|
|
45.2
|
|
43.3
|
The Netherlands
|
54.2
|
|
58.5
|
|
53.1
|
|
58.1
|
Germany
|
62.1
|
|
62.6
|
|
61.5
|
|
62.1
|
Belgium
|
52.1
|
|
49.4
|
|
50.6
|
|
51.0
|
Switzerland/Austria
|
57.9
|
|
58.2
|
|
57.3
|
|
57.6
|
Total Western Europe
|
51.8
|
|
50.8
|
|
51.1
|
|
50.7
|
Central and Eastern Europe
|
44.3
|
|
45.4
|
|
44.2
|
|
47.1
|
Total European Operations Division
|
49.6
|
|
48.7
|
|
49.0
|
|
48.7
|
LiLAC Group:
|
|
|
|
|
|
|
|
LiLAC Division:
|
|
|
|
|
|
|
|
Chile
|
39.7
|
|
37.3
|
|
38.1
|
|
37.0
|
Puerto Rico
|
45.0
|
|
43.6
|
|
43.8
|
|
41.4
|
Total LiLAC Division
|
41.2
|
|
38.9
|
|
39.7
|
|
38.1
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Subscription revenue (a):
|
|
|
|
|
|
|
|
|
|
||||||||
Video
|
$
|
1,607.9
|
|
|
$
|
1,663.5
|
|
|
$
|
(55.6
|
)
|
|
(3.3
|
)
|
|
(0.1
|
)
|
Broadband internet
|
1,276.7
|
|
|
1,190.6
|
|
|
86.1
|
|
|
7.2
|
|
|
9.8
|
|
|||
Fixed-line telephony
|
801.4
|
|
|
833.0
|
|
|
(31.6
|
)
|
|
(3.8
|
)
|
|
(0.9
|
)
|
|||
Cable subscription revenue
|
3,686.0
|
|
|
3,687.1
|
|
|
(1.1
|
)
|
|
—
|
|
|
2.9
|
|
|||
Mobile subscription revenue (b)
|
261.2
|
|
|
273.1
|
|
|
(11.9
|
)
|
|
(4.4
|
)
|
|
5.2
|
|
|||
Total subscription revenue
|
3,947.2
|
|
|
3,960.2
|
|
|
(13.0
|
)
|
|
(0.3
|
)
|
|
3.1
|
|
|||
B2B revenue (c)
|
380.5
|
|
|
372.0
|
|
|
8.5
|
|
|
2.3
|
|
|
6.0
|
|
|||
Other revenue (b) (d)
|
238.8
|
|
|
270.0
|
|
|
(31.2
|
)
|
|
(11.6
|
)
|
|
6.0
|
|
|||
Total
|
$
|
4,566.5
|
|
|
$
|
4,602.2
|
|
|
$
|
(35.7
|
)
|
|
(0.8
|
)
|
|
3.5
|
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Subscription revenue (a):
|
|
|
|
|
|
|
|
|
|
||||||||
Video
|
$
|
3,217.3
|
|
|
$
|
3,305.0
|
|
|
$
|
(87.7
|
)
|
|
(2.7
|
)
|
|
0.5
|
|
Broadband internet
|
2,515.9
|
|
|
2,334.5
|
|
|
181.4
|
|
|
7.8
|
|
|
9.9
|
|
|||
Fixed-line telephony
|
1,601.1
|
|
|
1,659.4
|
|
|
(58.3
|
)
|
|
(3.5
|
)
|
|
(1.0
|
)
|
|||
Cable subscription revenue
|
7,334.3
|
|
|
7,298.9
|
|
|
35.4
|
|
|
0.5
|
|
|
3.2
|
|
|||
Mobile subscription revenue (b)
|
512.9
|
|
|
530.4
|
|
|
(17.5
|
)
|
|
(3.3
|
)
|
|
6.5
|
|
|||
Total subscription revenue
|
7,847.2
|
|
|
7,829.3
|
|
|
17.9
|
|
|
0.2
|
|
|
3.4
|
|
|||
B2B revenue (c)
|
754.4
|
|
|
739.0
|
|
|
15.4
|
|
|
2.1
|
|
|
5.5
|
|
|||
Other revenue (b) (d)
|
481.8
|
|
|
567.6
|
|
|
(85.8
|
)
|
|
(15.1
|
)
|
|
(1.9
|
)
|
|||
Total
|
$
|
9,083.4
|
|
|
$
|
9,135.9
|
|
|
$
|
(52.5
|
)
|
|
(0.6
|
)
|
|
3.2
|
|
(a)
|
Subscription revenue includes amounts received from subscribers for ongoing services, excluding installation fees and late fees. Subscription revenue from subscribers who purchase bundled services at a discounted rate is generally allocated proportionally to each service based on the standalone price for each individual service. As a result, changes in the standalone pricing of our cable and mobile products or the composition of bundles can contribute to changes in our product revenue categories from period to period.
|
(b)
|
Mobile subscription revenue excludes mobile interconnect revenue of
$53.1 million
and
$63.0 million
during the three months ended
June 30, 2015
and
2014
, respectively, and
$107.5 million
and
$123.8 million
during the
six
months ended
|
(c)
|
B2B
revenue includes revenue from business broadband internet, video, voice, mobile and data services offered to medium to large enterprises and, on a wholesale basis, to other operators. We also provide services to certain
SOHO
subscribers.
SOHO
subscribers pay a premium price to receive enhanced service levels along with video, broadband internet, fixed-line telephony or mobile services that are the same or similar to the mass marketed products offered to our residential subscribers. Revenue from
SOHO
subscribers, which aggregated
$71.9 million
and
$55.2 million
during the three months ended
June 30, 2015
and
2014
, respectively, and
$138.5 million
and
$107.2 million
during the
six
months ended
June 30, 2015
and
2014
, respectively, is included in cable subscription revenue. On an organic basis, our total
B2B
revenue, including revenue from
SOHO
subscribers, increased 8.3% and 7.8% for the
three and six months ended June 30, 2015
, respectively, as compared to the corresponding prior year periods.
|
(d)
|
Other revenue includes, among other items,
interconnect, mobile handset sales, carriage fee and installation revenue
.
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Subscription revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Video
|
$
|
1,472.9
|
|
|
$
|
1,528.5
|
|
|
$
|
(55.6
|
)
|
|
(3.6
|
)
|
|
(0.6
|
)
|
Broadband internet
|
1,176.0
|
|
|
1,094.4
|
|
|
81.6
|
|
|
7.5
|
|
|
9.9
|
|
|||
Fixed-line telephony
|
757.4
|
|
|
785.4
|
|
|
(28.0
|
)
|
|
(3.6
|
)
|
|
(0.9
|
)
|
|||
Cable subscription revenue
|
3,406.3
|
|
|
3,408.3
|
|
|
(2.0
|
)
|
|
(0.1
|
)
|
|
2.7
|
|
|||
Mobile subscription revenue (a)
|
252.0
|
|
|
267.3
|
|
|
(15.3
|
)
|
|
(5.7
|
)
|
|
3.6
|
|
|||
Total subscription revenue
|
3,658.3
|
|
|
3,675.6
|
|
|
(17.3
|
)
|
|
(0.5
|
)
|
|
2.8
|
|
|||
B2B revenue (b)
|
378.8
|
|
|
371.1
|
|
|
7.7
|
|
|
2.1
|
|
|
5.8
|
|
|||
Other revenue
|
218.0
|
|
|
249.1
|
|
|
(31.1
|
)
|
|
(12.5
|
)
|
|
6.0
|
|
|||
Total Liberty Global Group
|
$
|
4,255.1
|
|
|
$
|
4,295.8
|
|
|
$
|
(40.7
|
)
|
|
(0.9
|
)
|
|
3.2
|
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Subscription revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Video
|
$
|
2,955.1
|
|
|
$
|
3,036.9
|
|
|
$
|
(81.8
|
)
|
|
(2.7
|
)
|
|
0.1
|
|
Broadband internet
|
2,321.8
|
|
|
2,144.1
|
|
|
177.7
|
|
|
8.3
|
|
|
10.0
|
|
|||
Fixed-line telephony
|
1,515.5
|
|
|
1,563.1
|
|
|
(47.6
|
)
|
|
(3.0
|
)
|
|
(0.9
|
)
|
|||
Cable subscription revenue
|
6,792.4
|
|
|
6,744.1
|
|
|
48.3
|
|
|
0.7
|
|
|
3.0
|
|
|||
Mobile subscription revenue (a)
|
495.6
|
|
|
519.9
|
|
|
(24.3
|
)
|
|
(4.7
|
)
|
|
4.9
|
|
|||
Total subscription revenue
|
7,288.0
|
|
|
7,264.0
|
|
|
24.0
|
|
|
0.3
|
|
|
3.2
|
|
|||
B2B revenue (b)
|
751.3
|
|
|
737.4
|
|
|
13.9
|
|
|
1.9
|
|
|
5.3
|
|
|||
Other revenue
|
444.9
|
|
|
528.2
|
|
|
(83.3
|
)
|
|
(15.8
|
)
|
|
(2.1
|
)
|
|||
Total Liberty Global Group
|
$
|
8,484.2
|
|
|
$
|
8,529.6
|
|
|
$
|
(45.4
|
)
|
|
(0.5
|
)
|
|
3.0
|
|
(a)
|
Mobile subscription revenue excludes mobile interconnect revenue of
$52.1 million
and
$62.3 million
during the three months ended
June 30, 2015
and
2014
, respectively, and
$105.7 million
and
$122.4 million
during the
six
months ended
June 30, 2015
and
2014
, respectively. Mobile interconnect revenue and revenue from mobile handset sales are included in other revenue.
|
(b)
|
Revenue from
SOHO
subscribers, which aggregated
$66.9 million
and
$51.0 million
during the three months ended
June 30, 2015
and
2014
, respectively, and
$129.0 million
and
$98.7 million
during the
six
months ended
June 30, 2015
and
2014
, respectively, is included in cable subscription revenue. On an organic basis,
Liberty Global Group
’s total
B2B
revenue, including revenue from
SOHO
subscribers, increased 8.2% and 7.7% for the
three and six months ended June 30, 2015
, respectively, as compared to the corresponding prior year periods.
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase
|
|||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
|||||||
|
in millions
|
|
|
|
|
|||||||||||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|||||||
Subscription revenue:
|
|
|
|
|
|
|
|
|
|
|||||||
Video
|
$
|
135.0
|
|
|
$
|
135.0
|
|
|
$
|
—
|
|
|
—
|
|
|
5.7
|
Broadband internet
|
100.7
|
|
|
96.2
|
|
|
4.5
|
|
|
4.7
|
|
|
8.9
|
|||
Fixed-line telephony
|
44.0
|
|
|
47.6
|
|
|
(3.6
|
)
|
|
(7.6
|
)
|
|
0.5
|
|||
Cable subscription revenue
|
279.7
|
|
|
278.8
|
|
|
0.9
|
|
|
0.3
|
|
|
5.9
|
|||
Mobile subscription revenue (a)
|
9.2
|
|
|
5.8
|
|
|
3.4
|
|
|
58.6
|
|
|
78.5
|
|||
Total subscription revenue
|
288.9
|
|
|
284.6
|
|
|
4.3
|
|
|
1.5
|
|
|
7.4
|
|||
B2B revenue (b)
|
1.7
|
|
|
0.9
|
|
|
0.8
|
|
|
88.9
|
|
|
68.4
|
|||
Other revenue
|
20.8
|
|
|
20.9
|
|
|
(0.1
|
)
|
|
(0.5
|
)
|
|
5.9
|
|||
Total LiLAC Group
|
$
|
311.4
|
|
|
$
|
306.4
|
|
|
$
|
5.0
|
|
|
1.6
|
|
|
7.5
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|
Organic increase (decrease)
|
||||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|
%
|
||||||||
|
in millions
|
|
|
|
|
||||||||||||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
||||||||
Subscription revenue:
|
|
|
|
|
|
|
|
|
|
||||||||
Video
|
$
|
262.2
|
|
|
$
|
268.1
|
|
|
$
|
(5.9
|
)
|
|
(2.2
|
)
|
|
5.1
|
|
Broadband internet
|
194.1
|
|
|
190.4
|
|
|
3.7
|
|
|
1.9
|
|
|
8.7
|
|
|||
Fixed-line telephony
|
85.6
|
|
|
96.3
|
|
|
(10.7
|
)
|
|
(11.1
|
)
|
|
(2.5
|
)
|
|||
Cable subscription revenue
|
541.9
|
|
|
554.8
|
|
|
(12.9
|
)
|
|
(2.3
|
)
|
|
5.0
|
|
|||
Mobile subscription revenue (a)
|
17.3
|
|
|
10.5
|
|
|
6.8
|
|
|
64.8
|
|
|
85.1
|
|
|||
Total subscription revenue
|
559.2
|
|
|
565.3
|
|
|
(6.1
|
)
|
|
(1.1
|
)
|
|
6.5
|
|
|||
B2B revenue (b)
|
3.1
|
|
|
1.6
|
|
|
1.5
|
|
|
93.8
|
|
|
82.2
|
|
|||
Other revenue
|
36.9
|
|
|
39.5
|
|
|
(2.6
|
)
|
|
(6.6
|
)
|
|
(0.3
|
)
|
|||
Total LiLAC Group
|
$
|
599.2
|
|
|
$
|
606.4
|
|
|
$
|
(7.2
|
)
|
|
(1.2
|
)
|
|
6.3
|
|
(a)
|
Mobile subscription revenue excludes mobile interconnect revenue of
$1.0 million
and
$0.7 million
during the three months ended
June 30, 2015
and
2014
, respectively, and
$1.8 million
and
$1.4 million
during the
six
months ended
|
(b)
|
Revenue from
SOHO
subscribers, which aggregated
$5.0 million
and
$4.2 million
during the three months ended
June 30, 2015
and
2014
, respectively, and
$9.5 million
and
$8.5 million
during the
six
months ended
June 30, 2015
and
2014
, respectively, is included in cable subscription revenue. On an organic basis,
LiLAC Group
’s total
B2B
revenue, including revenue from
SOHO
subscribers, increased 16.0% and 19.1% for the
three and six months ended June 30, 2015
, respectively, as compared to the corresponding prior year periods.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
Old Liberty Global Ordinary Shares:
|
|
|
|
|
|
|
|
||||||||
Performance-based incentive awards (a)
|
$
|
28.5
|
|
|
$
|
23.2
|
|
|
$
|
70.6
|
|
|
$
|
43.8
|
|
Other share-based incentive awards
|
25.1
|
|
|
22.2
|
|
|
50.5
|
|
|
52.4
|
|
||||
Total Old Liberty Global Ordinary Shares
|
53.6
|
|
|
45.4
|
|
|
121.1
|
|
|
96.2
|
|
||||
Telenet share-based incentive awards
|
2.4
|
|
|
7.8
|
|
|
5.6
|
|
|
10.7
|
|
||||
Other
|
0.6
|
|
|
1.2
|
|
|
1.3
|
|
|
2.6
|
|
||||
Total
|
$
|
56.6
|
|
|
$
|
54.4
|
|
|
$
|
128.0
|
|
|
$
|
109.5
|
|
Included in:
|
|
|
|
|
|
|
|
||||||||
Operating expense:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
1.1
|
|
|
$
|
3.2
|
|
|
$
|
1.8
|
|
|
$
|
4.0
|
|
LiLAC Group
|
0.3
|
|
|
0.4
|
|
|
0.3
|
|
|
0.9
|
|
||||
Total operating expense
|
1.4
|
|
|
3.6
|
|
|
2.1
|
|
|
4.9
|
|
||||
SG&A expense:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
53.9
|
|
|
49.3
|
|
|
125.7
|
|
|
101.4
|
|
||||
LiLAC Group (b)
|
1.3
|
|
|
1.5
|
|
|
0.2
|
|
|
3.2
|
|
||||
Total SG&A expense
|
55.2
|
|
|
50.8
|
|
|
125.9
|
|
|
104.6
|
|
||||
Total
|
$
|
56.6
|
|
|
$
|
54.4
|
|
|
$
|
128.0
|
|
|
$
|
109.5
|
|
(a)
|
Includes share-based compensation expense related to (i)
Liberty Global
PSU
s, (ii) the
Challenge Performance Awards
and (iii) the
PGUs
.
|
(b)
|
The amount for the six-month period in 2015 includes the reversal of $1.8 million of share-based compensation expense, primarily related to forfeitures of unvested
PSU
s during the first quarter of 2015.
|
|
Three months ended June 30,
|
|
Increase
|
||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
||||||
|
in millions
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||
Liberty Global Group
|
$
|
1,423.5
|
|
|
$
|
1,341.4
|
|
|
$
|
82.1
|
|
|
6.1
|
LiLAC Group
|
54.3
|
|
|
52.0
|
|
|
2.3
|
|
|
4.4
|
|||
Total
|
$
|
1,477.8
|
|
|
$
|
1,393.4
|
|
|
$
|
84.4
|
|
|
6.1
|
|
Six months ended June 30,
|
|
Increase
|
||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
||||||
|
in millions
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||
Liberty Global Group
|
$
|
2,822.7
|
|
|
$
|
2,666.6
|
|
|
$
|
156.1
|
|
|
5.9
|
LiLAC Group
|
106.5
|
|
|
103.9
|
|
|
2.6
|
|
|
2.5
|
|||
Total
|
$
|
2,929.2
|
|
|
$
|
2,770.5
|
|
|
$
|
158.7
|
|
|
5.7
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
19.9
|
|
|
$
|
25.8
|
|
|
$
|
31.8
|
|
|
$
|
138.4
|
|
LiLAC Group
|
5.8
|
|
|
1.8
|
|
|
10.9
|
|
|
2.8
|
|
||||
Total
|
$
|
25.7
|
|
|
$
|
27.6
|
|
|
$
|
42.7
|
|
|
$
|
141.2
|
|
|
Three months ended June 30,
|
|
Increase (decrease)
|
|||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
|
in millions
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||
Liberty Global Group
|
$
|
560.6
|
|
|
$
|
604.4
|
|
|
$
|
(43.8
|
)
|
|
(7.2
|
)
|
LiLAC Group
|
40.3
|
|
|
37.8
|
|
|
2.5
|
|
|
6.6
|
|
|||
Inter-group eliminations
|
(0.1
|
)
|
|
(0.4
|
)
|
|
0.3
|
|
|
N.M.
|
|
|||
Total
|
$
|
600.8
|
|
|
$
|
641.8
|
|
|
$
|
(41.0
|
)
|
|
(6.4
|
)
|
|
Six months ended June 30,
|
|
Increase (decrease)
|
|||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
|
in millions
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|||||||
Liberty Global Group
|
$
|
1,138.2
|
|
|
$
|
1,226.2
|
|
|
$
|
(88.0
|
)
|
|
(7.2
|
)
|
LiLAC Group
|
78.8
|
|
|
69.8
|
|
|
9.0
|
|
|
12.9
|
|
|||
Inter-group eliminations
|
(0.3
|
)
|
|
(0.7
|
)
|
|
0.4
|
|
|
N.M.
|
|
|||
Total
|
$
|
1,216.7
|
|
|
$
|
1,295.3
|
|
|
$
|
(78.6
|
)
|
|
(6.1
|
)
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Cross-currency and interest rate derivative contracts:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
(547.7
|
)
|
|
$
|
(287.6
|
)
|
|
$
|
114.6
|
|
|
$
|
(580.3
|
)
|
LiLAC Group
|
(0.6
|
)
|
|
1.9
|
|
|
77.6
|
|
|
(125.6
|
)
|
||||
Total cross-currency and interest rate derivative contracts (a)
|
(548.3
|
)
|
|
(285.7
|
)
|
|
192.2
|
|
|
(705.9
|
)
|
||||
Equity-related derivative instruments - Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
ITV Collar
|
(53.5
|
)
|
|
—
|
|
|
(158.9
|
)
|
|
—
|
|
||||
Sumitomo Collar
|
(61.8
|
)
|
|
(23.8
|
)
|
|
(71.9
|
)
|
|
(15.3
|
)
|
||||
Ziggo Collar
|
—
|
|
|
(21.3
|
)
|
|
—
|
|
|
(5.9
|
)
|
||||
Other
|
0.5
|
|
|
0.7
|
|
|
1.1
|
|
|
0.9
|
|
||||
Total equity-related derivative instruments (b)
|
(114.8
|
)
|
|
(44.4
|
)
|
|
(229.7
|
)
|
|
(20.3
|
)
|
||||
Foreign currency forward contracts:
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
(18.1
|
)
|
|
0.5
|
|
|
(27.4
|
)
|
|
19.6
|
|
||||
LiLAC Group
|
1.8
|
|
|
(0.1
|
)
|
|
3.0
|
|
|
0.8
|
|
||||
Total foreign currency forward contracts
|
(16.3
|
)
|
|
0.4
|
|
|
(24.4
|
)
|
|
20.4
|
|
||||
Other - Liberty Global Group
|
(0.3
|
)
|
|
1.1
|
|
|
0.7
|
|
|
0.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total Liberty Global Group
|
(680.9
|
)
|
|
(330.4
|
)
|
|
(141.8
|
)
|
|
(580.4
|
)
|
||||
Total LiLAC Group
|
1.2
|
|
|
1.8
|
|
|
80.6
|
|
|
(124.8
|
)
|
||||
Total
|
$
|
(679.7
|
)
|
|
$
|
(328.6
|
)
|
|
$
|
(61.2
|
)
|
|
$
|
(705.2
|
)
|
(a)
|
The loss during the
2015
three-month period
is primarily attributable to the net effect of (i) losses associated with increases in the values of the euro and British pound sterling relative to the
U.S.
dollar, (ii) gains associated with increases in market interest rates in the euro and British pound sterling markets and (iii) losses associated with increases in market interest rates in the
U.S.
dollar market. The gain during the
2015
six-month period
is primarily attributable to the net effect of (a) gains associated with decreases in the values of the euro, Chilean peso and British pound sterling relative to the
U.S.
dollar, (b) losses associated with decreases in the values of the euro and
U.S.
dollar relative to the Swiss franc and (c) gains associated with increases in market interest rates in the euro and British pound sterling markets. In addition, the
|
(b)
|
For information concerning the factors that impact the valuations of our equity-related derivative instruments, see note
5
to our condensed consolidated financial statements.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
||||||||
U.S. dollar denominated debt issued by euro functional currency entities
|
$
|
214.4
|
|
|
$
|
(17.6
|
)
|
|
$
|
(585.7
|
)
|
|
$
|
(24.0
|
)
|
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (a)
|
(17.0
|
)
|
|
(92.7
|
)
|
|
(135.4
|
)
|
|
(135.0
|
)
|
||||
U.S. dollar denominated debt issued by a British pound sterling functional currency entity
|
239.2
|
|
|
91.4
|
|
|
81.6
|
|
|
119.3
|
|
||||
Euro denominated debt issued by a British pound sterling functional currency entity
|
9.8
|
|
|
—
|
|
|
27.7
|
|
|
—
|
|
||||
Cash and restricted cash denominated in a currency other than the entity’s functional currency
|
(68.2
|
)
|
|
(0.3
|
)
|
|
(15.2
|
)
|
|
(11.2
|
)
|
||||
Yen denominated debt issued by a U.S. dollar functional currency entity
|
13.9
|
|
|
(16.0
|
)
|
|
14.5
|
|
|
(35.0
|
)
|
||||
British pound sterling denominated debt issued by a U.S. dollar functional currency entity
|
(37.9
|
)
|
|
—
|
|
|
(6.3
|
)
|
|
—
|
|
||||
Euro denominated debt issued by a U.S. dollar functional currency entity
|
—
|
|
|
4.1
|
|
|
—
|
|
|
8.0
|
|
||||
Other
|
17.5
|
|
|
(0.9
|
)
|
|
(2.7
|
)
|
|
(0.6
|
)
|
||||
Total Liberty Global Group
|
371.7
|
|
|
(32.0
|
)
|
|
(621.5
|
)
|
|
(78.5
|
)
|
||||
LiLAC Group:
|
|
|
|
|
|
|
|
||||||||
U.S. dollar denominated debt issued by a Chilean peso functional currency entity
|
(30.2
|
)
|
|
(8.7
|
)
|
|
(71.3
|
)
|
|
(6.7
|
)
|
||||
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency (b)
|
(0.6
|
)
|
|
6.8
|
|
|
—
|
|
|
31.8
|
|
||||
Other
|
(0.5
|
)
|
|
(2.5
|
)
|
|
(2.4
|
)
|
|
(3.8
|
)
|
||||
Total LiLAC Group
|
(31.3
|
)
|
|
(4.4
|
)
|
|
(73.7
|
)
|
|
21.3
|
|
||||
Total
|
$
|
340.4
|
|
|
$
|
(36.4
|
)
|
|
$
|
(695.2
|
)
|
|
$
|
(57.2
|
)
|
(a)
|
Amounts primarily relate to (i) loans between certain of our non-operating and operating subsidiaries in Europe, which generally are denominated in the currency of the applicable operating subsidiary, and (ii) loans between certain of our non-operating subsidiaries in the
U.S.
and Europe.
|
(b)
|
Amounts primarily relate to loans between certain of our subsidiaries in Europe and Chile.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
ITV
|
$
|
100.4
|
|
|
$
|
—
|
|
|
$
|
204.5
|
|
|
$
|
—
|
|
Sumitomo
|
43.1
|
|
|
35.0
|
|
|
59.2
|
|
|
43.6
|
|
||||
Ziggo
|
—
|
|
|
112.2
|
|
|
—
|
|
|
34.5
|
|
||||
Other, net
|
(32.7
|
)
|
|
10.2
|
|
|
(1.5
|
)
|
|
19.1
|
|
||||
Total
|
$
|
110.8
|
|
|
$
|
157.4
|
|
|
$
|
262.2
|
|
|
$
|
97.2
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
(73.8
|
)
|
|
$
|
(53.0
|
)
|
|
$
|
(348.3
|
)
|
|
$
|
(71.9
|
)
|
LiLAC Group
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.0
|
)
|
||||
Total
|
$
|
(73.8
|
)
|
|
$
|
(53.0
|
)
|
|
$
|
(348.3
|
)
|
|
$
|
(73.9
|
)
|
•
|
a
$91.2 million
loss during the first quarter related to the redemption of the
UM Senior Exchange Notes
. This loss includes (i) the payment of
$89.8 million
of redemption premium and (ii) the write-off of
$1.4 million
of unamortized discount;
|
•
|
a
$74.7 million
loss during the first quarter related to (i) the redemption of the
UPCB Finance I Notes
and a portion of the
UPCB Finance II Notes
and (ii) the prepayment of
Facility AG
under the
UPC Broadband Holding Bank Facility
. This loss includes (a) the payment of
$53.5 million
of redemption premium, (b) the write-off of
$16.5 million
of deferred financing costs and (c) the write-off of
$4.7 million
of unamortized discount;
|
•
|
a
$69.3 million
loss during the first quarter related to the redemption of the
UPC Holding 8.375% Senior Notes
. This loss includes (i) the payment of
$59.2 million
of redemption premium and (ii) the write-off of
$10.1 million
of deferred financing costs;
|
•
|
a
$59.6 million
loss during the second quarter related to the redemption of (i) the remainder of the
UPCB Finance II Notes
, (ii) the
UPCB Finance III Notes
and (iii)
10%
of the principal amount of each of the
UPCB Finance V Notes
and the
UPCB Finance VI Notes
. This loss includes (a) the payment of
$54.3 million
of redemption premium and (b) the write-off of
$5.3 million
of deferred financing costs;
|
•
|
a
$30.1 million
loss during the first quarter related to (i) the redemption of
10%
of the principal amount of each of the
April 2021 VM Senior Secured Notes
and the
2025 VM 5.5% Sterling Senior Secured Notes
and (ii) the prepayment of
VM Facility A
and a portion of
VM Facility B
under the
VM Credit Facility
. This loss includes (a) the write-off of
$17.9 million
of deferred financing costs, (b) the payment of
$10.7 million
of redemption premium and (c) the write-off of
$1.5 million
of unamortized discount;
|
•
|
a
$14.2 million
loss during the second quarter related to the prepayment of a portion of
VM Facility B
and the roll of the remaining outstanding term loans under
VM Facility B
into a new term loan under
VM Facility F
. This loss includes (i) the write-off of
$10.7 million
of deferred financing costs, (ii) the write-off of
$2.7 million
of unamortized discount and (iii) the payment of
$0.8 million
of third-party costs; and
|
•
|
an
$8.1 million
loss during the first quarter related to the redemption of
10%
of the principal amount of (i) the
September 2012 UM Senior Secured Notes
, (ii) the
December 2012 UM Euro Senior Secured Notes
, (iii) the
January 2013 UM Senior Secured Notes
and (iv) the
April 2013 UM Senior Secured Notes
. This loss includes (a) the payment of
$6.4 million
of redemption premium and (b) the write-off of
$1.7 million
of deferred financing costs.
|
•
|
a
$41.5 million
loss during the second quarter related to the repayment of
UPC Holding
’s 9.875% senior notes due 2018. This loss includes (i) the payment of
$19.7 million
of redemption premium, (ii) the write-off of
$17.4 million
of unamortized discount and (iii) the write-off of
$4.4 million
of deferred financing costs;
|
•
|
a
$16.5 million
loss during the first quarter related to the prepayment of Facilities R, S, AE and AF under the
UPC Broadband Holding Bank Facility
. This loss includes the write-off of (i)
$11.6 million
of deferred financing costs and (ii)
$4.9 million
of unamortized discount;
|
•
|
an
$11.9 million
loss during the second quarter related to the completion of certain refinancing transactions with respect to the
Telenet Credit Facility
. This loss includes (i) the write-off of
$7.1 million
of deferred financing costs, (ii) the payment of
$3.6 million
of redemption premium and (iii) the write-off of
$1.2 million
of unamortized discount; and
|
•
|
an aggregate net loss of
$4.5 million
related to the repayment of (i) certain of
Virgin Media
’s senior secured notes due 2018, (ii) a limited recourse margin loan that was secured by a portion of our investment in
Ziggo
and (iii)
VTR
’s former term loan bank facility.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
(131.4
|
)
|
|
$
|
11.0
|
|
|
$
|
(37.6
|
)
|
|
$
|
118.2
|
|
LiLAC Group
|
1.4
|
|
|
(10.4
|
)
|
|
(14.5
|
)
|
|
(0.6
|
)
|
||||
Total
|
$
|
(130.0
|
)
|
|
$
|
0.6
|
|
|
$
|
(52.1
|
)
|
|
$
|
117.6
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Liberty Global Group
|
$
|
(407.2
|
)
|
|
$
|
(246.3
|
)
|
|
$
|
(963.3
|
)
|
|
$
|
(598.2
|
)
|
LiLAC Group
|
(2.7
|
)
|
|
12.3
|
|
|
31.7
|
|
|
(55.8
|
)
|
||||
Total
|
$
|
(409.9
|
)
|
|
$
|
(234.0
|
)
|
|
$
|
(931.6
|
)
|
|
$
|
(654.0
|
)
|
|
Six months ended June 30,
|
|
|
||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
|
in millions
|
||||||||||
Liberty Global Group
|
$
|
(65.6
|
)
|
|
$
|
(10.8
|
)
|
|
$
|
(54.8
|
)
|
LiLAC Group
|
(5.0
|
)
|
|
2.6
|
|
|
(7.6
|
)
|
|||
Total
|
$
|
(70.6
|
)
|
|
$
|
(8.2
|
)
|
|
$
|
(62.4
|
)
|
Cash and cash equivalents held by:
|
|
||
Liberty Global and unrestricted subsidiaries:
|
|
||
Liberty Global (a)
|
$
|
39.3
|
|
Unrestricted subsidiaries:
|
|
||
Liberty Global Group (b) (c)
|
214.0
|
|
|
LiLAC Group (d)
|
100.0
|
|
|
Total Liberty Global and unrestricted subsidiaries
|
353.3
|
|
|
Borrowing groups (e):
|
|
||
Telenet
|
258.6
|
|
|
VTR Finance
|
95.0
|
|
|
Liberty Puerto Rico
|
37.9
|
|
|
UPC Holding
|
30.3
|
|
|
Virgin Media (c)
|
29.9
|
|
|
Ziggo Group Holding
|
11.0
|
|
|
Unitymedia
|
3.5
|
|
|
Total borrowing groups
|
466.2
|
|
|
Total cash and cash equivalents
|
$
|
819.5
|
|
|
|
||
Liberty Global Group
|
$
|
586.6
|
|
LiLAC Group
|
232.9
|
|
|
Total cash and cash equivalents
|
$
|
819.5
|
|
(a)
|
Represents the amount held by
Liberty Global
on a standalone basis.
|
(b)
|
Represents the aggregate amount held by subsidiaries attributed to the
Liberty Global Group
that are outside of our borrowing groups.
|
(c)
|
The Virgin Media borrowing group includes certain subsidiaries of
Virgin Media
, but excludes
Virgin Media
. The
$0.7 million
of cash and cash equivalents held by
Virgin Media
is included in the amount shown for
Liberty Global Group
’s unrestricted subsidiaries.
|
(d)
|
Represents the aggregate amount held by subsidiaries attributed to the
LiLAC Group
that are outside of our borrowing groups. On June 30, 2015, in order to provide liquidity to fund, among other things, ongoing operating costs and acquisitions
|
(e)
|
Except as otherwise noted, represents the aggregate amounts held by the parent entity and restricted subsidiaries of our borrowing groups.
|
|
Six months ended
|
|
|
||||||||
|
June 30,
|
|
|
||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
2,685.8
|
|
|
$
|
2,916.7
|
|
|
$
|
(230.9
|
)
|
Net cash used by investing activities
|
(1,692.1
|
)
|
|
(456.6
|
)
|
|
(1,235.5
|
)
|
|||
Net cash used by financing activities
|
(1,332.5
|
)
|
|
(4,059.9
|
)
|
|
2,727.4
|
|
|||
Effect of exchange rate changes on cash
|
(0.2
|
)
|
|
22.7
|
|
|
(22.9
|
)
|
|||
Net decrease in cash and cash equivalents
|
$
|
(339.0
|
)
|
|
$
|
(1,577.1
|
)
|
|
$
|
1,238.1
|
|
|
Six months ended
|
|
|
||||||||
|
June 30,
|
|
|
||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash provided by operating activities:
|
|
|
|
|
|
||||||
Liberty Global Group
|
$
|
2,552.1
|
|
|
$
|
2,746.6
|
|
|
$
|
(194.5
|
)
|
LiLAC Group
|
133.7
|
|
|
170.1
|
|
|
(36.4
|
)
|
|||
Total
|
$
|
2,685.8
|
|
|
$
|
2,916.7
|
|
|
$
|
(230.9
|
)
|
|
Six months ended
|
|
|
||||||||
|
June 30,
|
|
|
||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash used by investing activities:
|
|
|
|
|
|
||||||
Liberty Global Group
|
$
|
(1,418.5
|
)
|
|
$
|
93.2
|
|
|
$
|
(1,511.7
|
)
|
LiLAC Group
|
(380.9
|
)
|
|
(108.0
|
)
|
|
(272.9
|
)
|
|||
Inter-group eliminations
|
107.3
|
|
|
(441.8
|
)
|
|
549.1
|
|
|||
Total
|
$
|
(1,692.1
|
)
|
|
$
|
(456.6
|
)
|
|
$
|
(1,235.5
|
)
|
|
Six months ended June 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Total
|
|
Liberty Global Group
|
|
LiLAC Group
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions
|
$
|
1,839.6
|
|
|
$
|
125.9
|
|
|
$
|
1,965.5
|
|
|
$
|
1,746.5
|
|
|
$
|
134.5
|
|
|
$
|
1,881.0
|
|
Assets acquired under capital-related vendor financing arrangements
|
(675.9
|
)
|
|
—
|
|
|
(675.9
|
)
|
|
(401.8
|
)
|
|
—
|
|
|
(401.8
|
)
|
||||||
Assets acquired under capital leases
|
(74.5
|
)
|
|
—
|
|
|
(74.5
|
)
|
|
(89.8
|
)
|
|
—
|
|
|
(89.8
|
)
|
||||||
Changes in current liabilities related to capital expenditures
|
61.8
|
|
|
(14.5
|
)
|
|
47.3
|
|
|
39.5
|
|
|
(26.9
|
)
|
|
12.6
|
|
||||||
Capital expenditures
|
$
|
1,151.0
|
|
|
$
|
111.4
|
|
|
$
|
1,262.4
|
|
|
$
|
1,294.4
|
|
|
$
|
107.6
|
|
|
$
|
1,402.0
|
|
|
Six months ended
|
|
|
||||||||
|
June 30,
|
|
|
||||||||
|
2015
|
|
2014
|
|
Change
|
||||||
|
in millions
|
||||||||||
|
|
|
|
|
|
||||||
Net cash used by financing activities:
|
|
|
|
|
|
||||||
Liberty Global Group
|
$
|
(1,601.5
|
)
|
|
$
|
(4,377.8
|
)
|
|
$
|
2,776.3
|
|
LiLAC Group
|
376.3
|
|
|
(123.9
|
)
|
|
500.2
|
|
|||
Inter-group eliminations
|
(107.3
|
)
|
|
441.8
|
|
|
(549.1
|
)
|
|||
Total
|
$
|
(1,332.5
|
)
|
|
$
|
(4,059.9
|
)
|
|
$
|
2,727.4
|
|
|
Six months ended June 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Total
|
|
Liberty Global Group
|
|
LiLAC Group
|
|
Total
|
||||||||||||
|
in millions
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities of our continuing operations
|
$
|
2,552.1
|
|
|
$
|
133.7
|
|
|
$
|
2,685.8
|
|
|
$
|
2,746.6
|
|
|
$
|
170.1
|
|
|
$
|
2,916.7
|
|
Excess tax benefits from share-based compensation (a)
|
16.0
|
|
|
1.9
|
|
|
17.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash payments for direct acquisition and disposition costs
|
234.8
|
|
|
4.0
|
|
|
238.8
|
|
|
20.0
|
|
|
0.4
|
|
|
20.4
|
|
||||||
Expenses financed by an intermediary (b)
|
51.7
|
|
|
—
|
|
|
51.7
|
|
|
14.3
|
|
|
—
|
|
|
14.3
|
|
||||||
Capital expenditures
|
(1,151.0
|
)
|
|
(111.4
|
)
|
|
(1,262.4
|
)
|
|
(1,294.4
|
)
|
|
(107.6
|
)
|
|
(1,402.0
|
)
|
||||||
Principal payments on amounts financed by vendors and intermediaries
|
(732.1
|
)
|
|
—
|
|
|
(732.1
|
)
|
|
(399.4
|
)
|
|
—
|
|
|
(399.4
|
)
|
||||||
Principal payments on certain capital leases
|
(77.2
|
)
|
|
(0.2
|
)
|
|
(77.4
|
)
|
|
(96.8
|
)
|
|
(0.4
|
)
|
|
(97.2
|
)
|
||||||
Free cash flow
|
$
|
894.3
|
|
|
$
|
28.0
|
|
|
$
|
922.3
|
|
|
$
|
990.3
|
|
|
$
|
62.5
|
|
|
$
|
1,052.8
|
|
(a)
|
Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are reported as an increase to cash flows from financing activities and a corresponding decrease to cash flows from operating activities in our condensed consolidated statements of cash flows.
|
(b)
|
For purposes of our condensed consolidated statements of cash flows, expenses financed by an intermediary are treated as hypothetical operating cash outflows and hypothetical financing cash inflows when the expenses are incurred. When we pay the financing intermediary, we record financing cash outflows in our condensed consolidated statements of cash flows. For purposes of our free cash flow definition, we add back the hypothetical operating cash outflow when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary. The inclusion of this adjustment represents a change in our definition of free cash flow that we implemented effective January 1, 2015. The free cash flow reported for the 2014 period has been revised to calculate free cash flow on a basis that is consistent with the new definition.
|
|
Payments due during:
|
|
Total
|
||||||||||||||||||||||||||||
|
Remainder
of 2015 |
|
|
|
|
|
|||||||||||||||||||||||||
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
||||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt (excluding interest)
|
$
|
710.9
|
|
|
$
|
923.3
|
|
|
$
|
916.8
|
|
|
$
|
245.1
|
|
|
$
|
18.9
|
|
|
$
|
650.1
|
|
|
$
|
41,158.7
|
|
|
$
|
44,623.8
|
|
Capital leases (excluding interest)
|
101.3
|
|
|
153.2
|
|
|
113.8
|
|
|
86.9
|
|
|
73.8
|
|
|
73.7
|
|
|
826.4
|
|
|
1,429.1
|
|
||||||||
Programming commitments
|
519.2
|
|
|
977.6
|
|
|
880.3
|
|
|
701.3
|
|
|
263.7
|
|
|
5.5
|
|
|
2.4
|
|
|
3,350.0
|
|
||||||||
Network and connectivity commitments
|
190.7
|
|
|
265.6
|
|
|
239.3
|
|
|
124.5
|
|
|
86.9
|
|
|
62.8
|
|
|
907.0
|
|
|
1,876.8
|
|
||||||||
Purchase commitments
|
797.0
|
|
|
157.7
|
|
|
70.3
|
|
|
12.2
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
1,041.5
|
|
||||||||
Operating leases
|
88.8
|
|
|
152.5
|
|
|
128.3
|
|
|
110.3
|
|
|
89.8
|
|
|
56.3
|
|
|
293.9
|
|
|
919.9
|
|
||||||||
Other commitments
|
209.9
|
|
|
190.4
|
|
|
146.5
|
|
|
89.8
|
|
|
45.1
|
|
|
22.4
|
|
|
27.6
|
|
|
731.7
|
|
||||||||
Total (a)
|
$
|
2,617.8
|
|
|
$
|
2,820.3
|
|
|
$
|
2,495.3
|
|
|
$
|
1,370.1
|
|
|
$
|
582.5
|
|
|
$
|
870.8
|
|
|
$
|
43,216.0
|
|
|
$
|
53,972.8
|
|
Projected cash interest payments on debt and capital lease obligations (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liberty Global Group
|
$
|
965.3
|
|
|
$
|
2,184.5
|
|
|
$
|
2,089.2
|
|
|
$
|
2,076.2
|
|
|
$
|
2,058.6
|
|
|
$
|
2,044.9
|
|
|
$
|
6,285.0
|
|
|
$
|
17,703.7
|
|
LiLAC Group
|
70.6
|
|
|
145.3
|
|
|
145.1
|
|
|
145.1
|
|
|
145.1
|
|
|
145.2
|
|
|
407.6
|
|
|
1,204.0
|
|
||||||||
Total
|
$
|
1,035.9
|
|
|
$
|
2,329.8
|
|
|
$
|
2,234.3
|
|
|
$
|
2,221.3
|
|
|
$
|
2,203.7
|
|
|
$
|
2,190.1
|
|
|
$
|
6,692.6
|
|
|
$
|
18,907.7
|
|
(a)
|
The commitments reflected in this table do not reflect any liabilities that are included in our
June 30, 2015
condensed consolidated balance sheet other than debt and capital lease obligations. Our liability for uncertain tax positions in the various jurisdictions in which we operate ($387.7 million
at
June 30, 2015
) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.
|
(b)
|
Amounts are based on interest rates, interest payment dates and contractual maturities in effect as of
June 30, 2015
. These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods. In addition, the amounts presented do not include the impact of our interest rate derivative contracts, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
June 30, 2015
|
|
December 31, 2014
|
||
Spot rates:
|
|
|
|
||
Euro
|
0.8966
|
|
|
0.8264
|
|
British pound sterling
|
0.6360
|
|
|
0.6418
|
|
Swiss franc
|
0.9352
|
|
|
0.9939
|
|
Hungarian forint
|
282.65
|
|
|
261.44
|
|
Polish zloty
|
3.7576
|
|
|
3.5397
|
|
Czech koruna
|
24.525
|
|
|
22.914
|
|
Romanian lei
|
4.0170
|
|
|
3.7059
|
|
Chilean peso
|
639.00
|
|
|
606.90
|
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Average rates:
|
|
|
|
|
|
|
|
||||
Euro
|
0.9036
|
|
|
0.7293
|
|
|
0.8956
|
|
|
0.7295
|
|
British pound sterling
|
0.6526
|
|
|
0.5942
|
|
|
0.6565
|
|
|
0.5992
|
|
Swiss franc
|
0.9414
|
|
|
0.8891
|
|
|
0.9478
|
|
|
0.8908
|
|
Hungarian forint
|
276.58
|
|
|
223.13
|
|
|
275.48
|
|
|
223.88
|
|
Polish zloty
|
3.6941
|
|
|
3.0382
|
|
|
3.7095
|
|
|
3.0452
|
|
Czech koruna
|
24.753
|
|
|
20.018
|
|
|
24.650
|
|
|
20.019
|
|
Romanian lei
|
4.0153
|
|
|
3.2269
|
|
|
3.9865
|
|
|
3.2557
|
|
Chilean peso
|
617.85
|
|
|
554.69
|
|
|
621.28
|
|
|
553.41
|
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the British pound sterling relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
Virgin Media
cross-currency and interest rate derivative contracts by approximately
£636 million
(
$1,000 million
);
|
(ii)
|
an instantaneous increase (decrease) of 10% in the value of the euro relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
Virgin Media
cross-currency contracts by approximately
€32 million
(
$36 million
); and
|
(iii)
|
an instantaneous increase (decrease) in the relevant base rate of 50 basis points (0.50%) would have increased (decreased) the aggregate fair value of the
Virgin Media
cross-currency and interest rate derivative contracts by approximately
£71 million
(
$112 million
).
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the Swiss franc, Polish zloty, Czech koruna and Hungarian forint relative to the euro would have decreased (increased) the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€476 million
(
$531 million
);
|
(ii)
|
an instantaneous increase (decrease) of 10% in the value of the euro relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€275 million
(
$307 million
);
|
(iii)
|
an instantaneous increase (decrease) of 10% in the value of the Swiss franc and Romanian lei relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€126 million
(
$141 million
); and
|
(iv)
|
an instantaneous increase in the relevant base rate of 50 basis points (0.50%) would have increased the aggregate fair value of the
UPC Broadband Holding
cross-currency and interest rate derivative contracts by approximately
€63 million
(
$70 million
) and, conversely, a decrease of 50 basis points would have decreased the aggregate fair value by approximately
€71 million
(
$79 million
).
|
(i)
|
an instantaneous increase (decrease) of 10% in the value of the euro relative to the
U.S.
dollar would have decreased (increased) the aggregate fair value of the
Ziggo
cross-currency and interest rate derivative contracts by approximately
€268 million
(
$299 million
); and
|
(ii)
|
an instantaneous increase (decrease) in the relevant base rate of 50 basis points (0.50%) would have increased (decreased) the aggregate fair value of the
Ziggo
cross-currency and interest rate derivative contracts by approximately
€155 million
(
$173 million
).
|
|
Payments (receipts) due during:
|
|
Total
|
||||||||||||||||||||||||||||
|
Remainder of 2015
|
|
|
|
|||||||||||||||||||||||||||
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
Thereafter
|
|
|||||||||||||||||||
|
in millions
|
||||||||||||||||||||||||||||||
Projected derivative cash payments (receipts), net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liberty Global Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-related (a)
|
$
|
42.9
|
|
|
$
|
37.5
|
|
|
$
|
81.4
|
|
|
$
|
48.7
|
|
|
$
|
49.2
|
|
|
$
|
28.9
|
|
|
$
|
126.3
|
|
|
$
|
414.9
|
|
Principal-related (b)
|
(5.3
|
)
|
|
57.3
|
|
|
191.6
|
|
|
34.8
|
|
|
(49.1
|
)
|
|
(60.3
|
)
|
|
(849.7
|
)
|
|
(680.7
|
)
|
||||||||
Other (c)
|
11.3
|
|
|
(151.9
|
)
|
|
(252.6
|
)
|
|
(73.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(466.2
|
)
|
||||||||
Total Liberty Global Group
|
48.9
|
|
|
(57.1
|
)
|
|
20.4
|
|
|
10.5
|
|
|
0.1
|
|
|
(31.4
|
)
|
|
(723.4
|
)
|
|
(732.0
|
)
|
||||||||
LiLAC Group:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-related (a)
|
17.0
|
|
|
34.5
|
|
|
48.5
|
|
|
48.5
|
|
|
46.4
|
|
|
45.8
|
|
|
65.6
|
|
|
306.3
|
|
||||||||
Principal-related (b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(210.1
|
)
|
|
(210.1
|
)
|
||||||||
Other (c)
|
(2.2
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
||||||||
Total LiLAC Group
|
14.8
|
|
|
34.2
|
|
|
48.5
|
|
|
48.5
|
|
|
46.4
|
|
|
45.8
|
|
|
(144.5
|
)
|
|
93.7
|
|
||||||||
Total
|
$
|
63.7
|
|
|
$
|
(22.9
|
)
|
|
$
|
68.9
|
|
|
$
|
59.0
|
|
|
$
|
46.5
|
|
|
$
|
14.4
|
|
|
$
|
(867.9
|
)
|
|
$
|
(638.3
|
)
|
(a)
|
Includes (i) the cash flows of our interest rate cap, collar and swap contracts and (ii) the interest-related cash flows of our cross-currency and interest rate swap contracts.
|
(b)
|
Includes the principal-related cash flows of our cross-currency contracts.
|
(c)
|
Includes amounts related to our equity-related derivative instruments and foreign currency forward contracts. We may elect to use cash or the collective value of the related shares and equity-related derivative instrument to settle the
ITV Collar Loan
and the
Sumitomo Collar Loan
.
|
Item 4.
|
CONTROLS AND PROCEDURES
|
▪
|
a potential discount that investors may apply because the LiLAC Ordinary Shares are issued by a common enterprise, rather than a standalone company;
|
▪
|
actual or anticipated fluctuations in the LiLAC Group’s operating results or in the operating results of particular companies attributable to the group;
|
▪
|
|
▪
|
events or developments affecting the countries or regions in which the businesses attributed to the LiLAC Group operate;
|
▪
|
potential acquisition activity in the LiLAC Group;
|
▪
|
issuances of debt or equity securities to raise capital by us or the companies in which we invest and the manner in which that debt or the proceeds of an equity issuance are attributed to the LiLAC Group;
|
▪
|
changes in financial estimates by securities analysts regarding the LiLAC Ordinary Shares or the businesses attributed to the LiLAC Group;
|
▪
|
the complex nature and the potential difficulties investors may have in understanding the terms of the LiLAC Ordinary Shares, as well as concerns regarding the possible effect of certain of those terms on an investment in our shares;
|
▪
|
the lack of market familiarity with tracking shares issued by an English company and of directly applicable legal precedent, since we are not aware of any other English company that has issued such shares; and
|
▪
|
general market conditions.
|
▪
|
decisions as to the terms of any business relationships that may be created between the Liberty Global Group and the LiLAC Group or the terms of any reattributions of businesses, assets and liabilities between the groups;
|
▪
|
decisions as to the allocation of consideration among the holders of Liberty Global Ordinary Shares and LiLAC Ordinary Shares, or among the classes of shares relating to either of our groups, to be received in connection with a scheme of arrangement involving our company;
|
▪
|
|
▪
|
decisions as to the allocation of corporate opportunities between the groups, especially where the opportunities might meet the strategic business objectives of both groups;
|
▪
|
decisions as to operational and financial matters that could be considered detrimental to one group but beneficial to the other;
|
▪
|
decisions resulting in the redesignation, or conversion, of LiLAC Ordinary Shares into Liberty Global Ordinary Shares or deferred shares;
|
▪
|
decisions regarding the creation of, and, if created, the subsequent increase or decrease of any inter-group interest or loan that one group may have in or to the other group;
|
▪
|
decisions as to the internal or external financing attributable to businesses or assets attributed to either of our groups;
|
▪
|
decisions as to the dispositions of assets of either of our groups; and
|
▪
|
decisions as to the payment of dividends on the shares or share buybacks relating to either of our groups.
|
▪
|
obtain information regarding the divergence (or potential divergence) of interests;
|
▪
|
determine under what circumstances to seek the assistance of outside advisers;
|
▪
|
determine whether a committee of our board of directors should be appointed to address a specific matter and the appropriate members of that committee; and
|
▪
|
assess what is in the best interests of all of the company’s shareholders and relevant other stakeholders, and act in the way that the board of directors considers, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole, having considered the interests of its relevant stakeholders.
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
(c)
|
Issuer Purchases of Equity Securities
|
Period
|
|
Total number of shares purchased
|
|
Average price
paid per share (a)
|
|
Total number of
shares purchased as part of publicly
announced plans
or programs
|
|
Approximate
dollar value of
shares that may
yet be purchased
under the plans or programs
|
||||
|
|
|
|
|
|
|
|
|
||||
April 1, 2015 through April 30, 2015:
|
|
|
|
|
|
|
|
|||||
Class A
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
(b)
|
|
Class C
|
2,988,975
|
|
|
$
|
50.58
|
|
|
2,988,975
|
|
|
(b)
|
|
May 1, 2015 through May 31, 2015:
|
|
|
|
|
|
|
|
|||||
Class A
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
(b)
|
|
Class C
|
2,811,148
|
|
|
$
|
51.15
|
|
|
2,811,148
|
|
|
(b)
|
|
June 1, 2015 through June 30, 2015:
|
|
|
|
|
|
|
|
|||||
Class A
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
(b)
|
|
Class C
|
3,071,423
|
|
|
$
|
53.00
|
|
|
3,071,423
|
|
|
(b)
|
|
Total — April 1, 2015 through June 30, 2015:
|
|
|
|
|
|
|
|
|||||
Class A
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
(b)
|
|
Class C
|
8,871,546
|
|
|
$
|
51.60
|
|
|
8,871,546
|
|
|
(b)
|
(a)
|
Average price paid per share includes direct acquisition costs and the effects of derivative instruments, where applicable.
|
(b)
|
At
June 30, 2015
, the remaining amount authorized for share repurchases was
$3,002.8 million
.
|
Item 6.
|
EXHIBITS
|
3 — Articles of Incorporation
|
||
3.1
|
|
Articles of Association of Liberty Global, effective as of July 1, 2015 (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form 8-A filed June 19, 2015 (File No. 001-35961)).
|
|
|
|
4 — Instruments Defining the Rights of Securities Holders, including Indentures:
|
||
4.1
|
|
Indenture dated April 15, 2015, among UPCB Finance IV Limited, The Bank of New York Mellon, London Branch as Trustee, Principal Paying Agent, Transfer Agent and Security Agent, The Bank of New York Mellon as New York Paying Agent, New York Transfer Agent and Dollar Notes Registrar and The Bank of New York Mellon (Luxembourg) S.A. as Euro Notes Registrar and Transfer Agent (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K/A filed April 21, 2015 (File No. 001-35961) (the April 2015 8-K/A)).
|
|
|
|
4.2
|
|
Additional Facility AK Accession Agreement, dated April 15, 2015, among UPC Financing Partnership as Borrower, The Bank of Nova Scotia as Facility Agent and Security Agent, UPC Broadband Holding B.V. and UPCB Finance IV Limited as Additional Facility AK Lender, under the UPC Broadband Holding Credit Facility (incorporated by reference to Exhibit 4.2 to the April 2015 8-K/A).
|
|
|
|
4.3
|
|
Additional Facility AL Accession Agreement, dated April 15, 2015, among UPC Financing Partnership as Borrower, The Bank of Nova Scotia as Facility Agent and Security Agent, UPC Broadband Holding B.V. and UPCB Finance IV Limited as Additional Facility AL Lender, under the UPC Broadband Holding Credit Facility (incorporated by reference to Exhibit 4.3 to the April 2015 8-K/A).
|
|
|
|
4.4
|
|
Additional Facility Z Accession Agreement, dated May 7, 2015, between, among others, Telenet International Finance S.a.r.L. as Borrower, Telenet N.V., The Bank of Nova Scotia as Facility Agent, KBC Bank N.V. Security Agent and The Royal Bank of Scotland PLC, Societe Generale, London Branch, Deutsche Bank AG, London Branch, Credit Suisse AG, London Branch, ScotiaBank Europe PLC and Goldman Sachs Bank USA as Additional Facility Z Lenders, under the Telenet Credit Agreement (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed May 13, 2015 (File No. 001-35961) (the May 2015 8-K)).
|
|
|
|
4.5
|
|
Additional Facility AA Accession Agreement, dated May 7, 2015, between, among others, Telenet International Finance S.a.r.L. as Borrower, Telenet N.V., The Bank of Nova Scotia as Facility Agent, KBC Bank N.V. Security Agent and The Royal Bank of Scotland PLC, Societe Generale, London Branch, Deutsche Bank AG, London Branch, Credit Suisse AG, London Branch, The Bank of Nova Scotia and Goldman Sachs Bank USA as Additional Facility AA Lenders, under the Telenet Credit Agreement(incorporated by reference to Exhibit 4.2 to the May 2015 8-K).
|
|
|
|
4.6
|
|
Additional Facility AL2 Accession Agreement, dated May 20, 2015, among UPC Financing Partnership as Borrower, The Bank of New York Nova Scotia as Facility Agent and Security Agent, UPC Broadband Holding B.V. and UPCB Finance IV Limited as Additional Facility AL2 Lender, under the UPC Broadband Holding Credit Facility (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K/A filed May 21, 2015 (File No. 001-35961).
|
|
|
|
4.7
|
|
Additional Facility F Accession Agreement, dated May 29, 2015, among Virgin Media Bristol LLC as Borrower, The Bank of Nova Scotia as Facility Agent, Virgin Media Communications Networks Limited and the Bank of Nova Scotia as Additional Facility F Lender, under the Virgin Media Credit Facility (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed June 4, 2015 (File No. 001-35961) (the June 2015 8-K)).
|
|
|
|
4.8
|
|
Amended and Restated First Lien Credit Agreement dated as of July 7, 2014, among Liberty Puerto Rico, the guarantors party thereto from time to time, The Bank of Nova Scotia, as Administrative Agent, each lender form time to time party thereto and Scotiabank de Puerto Rico as L/C Issuer and Swing Line Lender (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed July 2, 2015 (File No. 001-35961) (the July 2015 8-K)).
|
|
|
|
4.9
|
|
Amended and Restated Second Lien Credit Agreement dated as of July 7, 2014, among Liberty Puerto Rico, the guarantors party thereto from time to time, The Bank of Nova Scotia, as Administrative Agent, and each lender from time to time party thereto (incorporated by reference to Exhibit 4.2 to the July 2015 8-K).
|
|
|
|
4.10
|
|
Additional Term B-1 Facility Joinder Agreement dated as of June 1, 2015, among Liberty Puerto Rico, The Bank of Nova Scotia as Administrative Agent and Collateral Agent and the Additional Term B-1 Facility Lenders party thereto (incorporated by reference to Exhibit 4.3 to the July 2015 8-K).
|
|
|
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
|
|
|
LIBERTY GLOBAL PLC
|
|
|
|
|
Dated:
|
August 4, 2015
|
|
/s/ M
ICHAEL
T. F
RIES
|
|
|
|
Michael T. Fries
President and Chief Executive Officer
|
|
|
|
|
Dated:
|
August 4, 2015
|
|
/s/ C
HARLES
H.R. B
RACKEN
|
|
|
|
Charles H.R. Bracken
Executive Vice President and Co-Chief
Financial Officer (Principal Financial Officer)
|
|
|
|
|
Dated:
|
August 4, 2015
|
|
/s/ B
ERNARD
G. D
VORAK
|
|
|
|
Bernard G. Dvorak
Executive Vice President and Co-Chief
Financial Officer (Principal Accounting Officer)
|
3 — Articles of Incorporation
|
||
3.1
|
|
Articles of Association of Liberty Global, effective as of July 1, 2015 (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form 8-A filed June 19, 2015 (File No. 001-35961)).
|
|
|
|
4 — Instruments Defining the Rights of Securities Holders, including Indentures:
|
||
4.1
|
|
Indenture dated April 15, 2015, among UPCB Finance IV Limited, The Bank of New York Mellon, London Branch as Trustee, Principal Paying Agent, Transfer Agent and Security Agent, The Bank of New York Mellon as New York Paying Agent, New York Transfer Agent and Dollar Notes Registrar and The Bank of New York Mellon (Luxembourg) S.A. as Euro Notes Registrar and Transfer Agent (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K/A filed April 21, 2015 (File No. 001-35961) (the April 2015 8-K/A)).
|
|
|
|
4.2
|
|
Additional Facility AK Accession Agreement, dated April 15, 2015, among UPC Financing Partnership as Borrower, The Bank of Nova Scotia as Facility Agent and Security Agent, UPC Broadband Holding B.V. and UPCB Finance IV Limited as Additional Facility AK Lender, under the UPC Broadband Holding Credit Facility (incorporated by reference to Exhibit 4.2 to the April 2015 8-K/A).
|
|
|
|
4.3
|
|
Additional Facility AL Accession Agreement, dated April 15, 2015, among UPC Financing Partnership as Borrower, The Bank of Nova Scotia as Facility Agent and Security Agent, UPC Broadband Holding B.V. and UPCB Finance IV Limited as Additional Facility AL Lender, under the UPC Broadband Holding Credit Facility (incorporated by reference to Exhibit 4.3 to the April 2015 8-K/A).
|
|
|
|
4.4
|
|
Additional Facility Z Accession Agreement, dated May 7, 2015, between, among others, Telenet International Finance S.a.r.L. as Borrower, Telenet N.V., The Bank of Nova Scotia as Facility Agent, KBC Bank N.V. Security Agent and The Royal Bank of Scotland PLC, Societe Generale, London Branch, Deutsche Bank AG, London Branch, Credit Suisse AG, London Branch, ScotiaBank Europe PLC and Goldman Sachs Bank USA as Additional Facility Z Lenders, under the Telenet Credit Agreement (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed May 13, 2015 (File No. 001-35961) (the May 2015 8-K)).
|
|
|
|
4.5
|
|
Additional Facility AA Accession Agreement, dated May 7, 2015, between, among others, Telenet International Finance S.a.r.L. as Borrower, Telenet N.V., The Bank of Nova Scotia as Facility Agent, KBC Bank N.V. Security Agent and The Royal Bank of Scotland PLC, Societe Generale, London Branch, Deutsche Bank AG, London Branch, Credit Suisse AG, London Branch, The Bank of Nova Scotia and Goldman Sachs Bank USA as Additional Facility AA Lenders, under the Telenet Credit Agreement(incorporated by reference to Exhibit 4.2 to the May 2015 8-K).
|
|
|
|
4.6
|
|
Additional Facility AL2 Accession Agreement, dated May 20, 2015, among UPC Financing Partnership as Borrower, The Bank of New York Nova Scotia as Facility Agent and Security Agent, UPC Broadband Holding B.V. and UPCB Finance IV Limited as Additional Facility AL2 Lender, under the UPC Broadband Holding Credit Facility (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K/A filed May 21, 2015 (File No. 001-35961).
|
|
|
|
4.7
|
|
Additional Facility F Accession Agreement, dated May 29, 2015, among Virgin Media Bristol LLC as Borrower, The Bank of Nova Scotia as Facility Agent, Virgin Media Communications Networks Limited and the Bank of Nova Scotia as Additional Facility F Lender, under the Virgin Media Credit Facility (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed June 4, 2015 (File No. 001-35961) (the June 2015 8-K)).
|
|
|
|
4.8
|
|
Amended and Restated First Lien Credit Agreement dated as of July 7, 2014, among Liberty Puerto Rico, the guarantors party thereto from time to time, The Bank of Nova Scotia, as Administrative Agent, each lender form time to time party thereto and Scotiabank de Puerto Rico as L/C Issuer and Swing Line Lender (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed July 2, 2015 (File No. 001-35961) (the July 2015 8-K)).
|
|
|
|
4.9
|
|
Amended and Restated Second Lien Credit Agreement dated as of July 7, 2014, among Liberty Puerto Rico, the guarantors party thereto from time to time, The Bank of Nova Scotia, as Administrative Agent, and each lender from time to time party thereto (incorporated by reference to Exhibit 4.2 to the July 2015 8-K).
|
|
|
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
SENIOR FACILITIES AGREEMENT
(dated 7 JUNE 2013 as amended on 14 JUNE 2013 and as amended and restated on 17 July 2015 and July 30 July ) |
(1)
|
VIRGIN MEDIA FINANCE PLC
(the “
Parent
”);
|
(2)
|
VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED, VIRGIN MEDIA LIMITED, VIRGIN MEDIA WHOLESALE LIMITED, VMIH SUB LIMITED, VIRGIN MEDIA SFA FINANCE LIMITED AND VIRGIN MEDIA BRISTOL LLC
(the “
Original Borrowers
”);
|
(3)
|
VIRGIN MEDIA FINANCE PLC, VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED, VIRGIN MEDIA LIMITED, VIRGIN MEDIA WHOLESALE LIMITED, VMIH SUB LIMITED, VIRGIN MEDIA SFA FINANCE LIMITED, VIRGIN MEDIA SECURED FINANCE PLC VIRGIN MEDIA BRISTOL LLC AND NTL VICTORIA LIMITED
(“the
Original Guarantors
”);
|
(4)
|
CREDIT SUISSE AG, LONDON BRANCH
(the “
Global Coordinator
”);
|
(5)
|
CREDIT SUISSE AG, LONDON BRANCH, BANC OF AMERICA SECURITIES LIMITED, BARCLAYS BANK PLC, BNP PARIBAS FORTIS SA/NV AND DEUTSCHE BANK AG, LONDON BRANCH
(each a ”
Bookrunner
” and together, the “
Bookrunners
”);
|
(6)
|
CREDIT SUISSE AG, LONDON BRANCH, BANC OF AMERICA SECURITIES LIMITED, BARCLAYS BANK PLC, BNP PARIBAS FORTIS SA/NV AND DEUTSCHE BANK AG, LONDON BRANCH
(each a “
Mandated Lead Arranger
” and together, the “
Mandated Lead Arrangers
”);
|
(7)
|
THE BANK OF NOVA SCOTIA
(as agent for and on behalf of the Relevant Finance Parties, the “
Facility Agent
”);
|
(8)
|
DEUTSCHE BANK AG, LONDON BRANCH
(as security trustee for and on behalf of the Relevant Finance Parties, the “
Security Trustee
”); and
|
(9)
|
THE LENDERS
(as defined below).
|
1.
|
DEFINITIONS AND INTERPRETATION
|
1.1
|
Definitions
|
(a)
|
prior to the Asset Security Release Date, all or substantially all of the assets of the Guarantors; and
|
(b)
|
on or after the Asset Security Release Date:
|
(i)
|
all of the shares in the Obligors held by any member of the Bank Group; and
|
(ii)
|
all of the shares in Virgin Media Finance PLC, Virgin Media Communications Limited and the Company and each of their immediate Subsidiaries;
|
(iii)
|
all of the rights of the relevant creditors in relation to Subordinated Funding; and
|
(iv)
|
Security over loans made by Virgin Media Finance PLC, Virgin Media Communications Limited and the Company and each of their immediate Subsidiaries to any other member of the Bank Group,
|
(a)
|
a bank or financial institution which has a rating for its long-term unsecured and non credit-enhanced debt obligations of BBB+ or higher by Standard & Poor’s Rating Services or Fitch Ratings Ltd or Baa1 or higher by Moody’s Investor Services Limited or a comparable rating from an internationally recognised credit rating agency; or
|
(b)
|
any other bank or financial institution approved by the Facility Agent (in consultation with the Company).
|
(a)
|
the value at the time of completion of the Acquisition of any consideration to be paid or delivered after the time of completion of the Acquisition will be determined in accordance with the Relevant Accounting Principles;
|
(b)
|
if the entity acquired becomes a member of the Bank Group as a result of the Acquisition, the aggregate principal amount of Financial Indebtedness of any entity acquired outstanding at the time of completion of the Acquisition (including without limitation any Lending Transaction (as defined in Clause 23.15(g) (
Loans and guarantees
) made by a member of the Bank Group in connection with the relevant Acquisition) will be counted as part of the consideration for that Acquisition;
|
(c)
|
if the entity acquired does not become a member of the Bank Group as a result of the Acquisition, the aggregate principal amount of Financial Indebtedness of the entity acquired at the time of completion of the Acquisition will be counted as part of the consideration for that Acquisition to the extent of the aggregate principal amount of the payment and repayment obligations in respect of such Financial Indebtedness assumed or guaranteed by any member of the Bank Group; and
|
(d)
|
subject to paragraphs (a), (b) and (c) above, the value at the time of completion of the Acquisition of any non-cash consideration will be determined in accordance with the Relevant Accounting Principles,
|
(a)
|
that are issued by the Parent or any Permitted Affiliate Holdco after the date of this Agreement pursuant to an Additional High Yield Offering;
|
(b)
|
having a final maturity (with no sinking fund payments) of no earlier than the latest Final Maturity Date then existing at the time of the issuing of such notes;
|
(c)
|
in respect of which the “cross-default” event of default with respect to a default under other indebtedness shall be limited to cross-default to any payment default or cross-acceleration;
|
(d)
|
that are unsecured;
|
(e)
|
that, if guaranteed, are not guaranteed by any member of the Bank Group other than the Company and/or Intermediate Holdco, provided that any such guarantee or guarantees so provided are (i) granted on subordination and release terms substantially the same as the existing guarantees of the Company and Intermediate Holdco in favour of the Existing High Yield Notes and (ii) subject to the terms of the HYD Intercreditor Agreement or a Supplemental HYD Intercreditor Agreement; and
|
(f)
|
that are designated as “Additional High Yield Notes” and “Parent Debt” by written notice from the Company to the Facility Agent and the Security Trustee by the date when the consolidated financial statements are due to be provided pursuant to Clause 23.2 (
Financial information
) for the first full Financial Quarter after the issuance of the relevant notes.
|
(a)
|
that are issued by the Parent, any Permitted Affiliate Parent, the Company, a Borrower or any other SSN Finance Subsidiary after the Closing Date;
|
(b)
|
having a final maturity (with no sinking fund payments) of no earlier than the latest Final Maturity Date then existing at the time of the issuing of such notes;
|
(c)
|
in respect of which the “cross-default” event of default with respect to a default under other indebtedness shall be limited to cross-default to any payment default or cross-acceleration;
|
(d)
|
in respect of which some or all of the Obligors have granted security and guarantees on the terms specified in the Group Intercreditor Agreement and substantially the same as to the Existing Senior Secured Notes; and
|
(e)
|
that are designated as (i) “Senior Secured Notes” by written notice from the Company to the Facility Agent, (ii) “New Senior Liabilities” under the Group Intercreditor Agreement by written notice from the Company to the Facility Agent and the Security Trustee, and (iii) “Designated Senior Liabilities” under the HYD Intercreditor Agreement, in each case, by the date when the consolidated financial statements are due to be provided pursuant to Clause 23.2 (
Financial information
) for the first full Financial Quarter after the issuance of the relevant notes.
|
(a)
|
when designated “
Revolving Facility
”, the principal amount of each advance made or to be made under the Revolving Facility (but excluding for the purposes of this definition, any utilisation of the Revolving Facility by way of Ancillary Facility or Documentary Credit);
|
(b)
|
when designated “
Additional Facility
”, the principal amount of each advance made or to be made under an Additional Facility or arising in respect of an Additional Facility under Clause 14.3 (
Consolidation and Division of Term
|
(c)
|
without any such designation, the “Additional Facility Advance” and/or the “Revolving Facility Advance”, as the context requires,
|
(a)
|
in relation to LIBOR:
|
(i)
|
(other than where paragraph (ii) below applies) as the rate at which the relevant Alternative Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or
|
(ii)
|
if different, as the rate (if any and applied to the relevant Alternative Reference Bank and the relevant currency and period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator; or
|
(b)
|
in relation to EURIBOR:
|
(i)
|
(other than where paragraph (ii) below applies) as the rate at which the relevant Alternative Reference Bank believes one prime bank is quoting to another prime bank for interbank term deposits in euro within the Participating Member States for the relevant period; or
|
(ii)
|
if different, as the rate (if any and applied to the relevant Alternative Reference Bank and the relevant period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.
|
(a)
|
overdraft, automated payment, cheque drawing or other current account facility;
|
(b)
|
forward foreign exchange facility;
|
(c)
|
derivatives facility;
|
(d)
|
a short term loan facility;
|
(e)
|
guarantee, bond issuance, documentary or stand-by letter of credit facility;
|
(f)
|
performance bond facility; and/or
|
(g)
|
such other facility or financial accommodation as may be required in connection with the Business and which is agreed in writing between the relevant Borrower and the relevant Ancillary Facility Lender.
|
(a)
|
all amounts of principal then outstanding under any overdraft, automated payment, cheque drawing or other current account facility (determined in accordance with the applicable terms) as at such time (net of any Available Credit Balance); and
|
(b)
|
in respect of any other facility or financial accommodation, such other amount as fairly represents the aggregate potential exposure of that Ancillary Facility Lender with respect to it under its Ancillary Facility, as reasonably determined by that Ancillary Facility Lender from time to time in accordance with its usual banking practices for facilities or accommodation of the relevant type (including without limitation, the calculation of exposure under any derivatives facility by reference to the mark-to-market valuation of such transaction at the relevant time).
|
(a)
|
Executive Order No. 13224 on Terrorist Financing - Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism issued 23 September 2001, as amended by Order 13268 (as so amended, the
Executive Order
);
|
(b)
|
the Patriot Act;
|
(c)
|
the Money Laundering Control Act of 1986 18 U.S.C, section 1956; and
|
(d)
|
any similar law enacted in the United States subsequent to the date of this Agreement.
|
(a)
|
in the case of an asset being transferred by the Borrower Holdco to the Asset Transferring Party that asset:
|
(i)
|
is first transferred by the Borrower Holdco to a member of the Bank Group; and
|
(ii)
|
may then be transferred between various members of the Bank Group, and is finally transferred (insofar as such transaction relates to the Bank Group) to an Asset Transferring Party; or
|
(b)
|
in the case of an asset being transferred by an Asset Transferring Party to the Borrower Holdco, that asset:
|
(i)
|
is first transferred by that Asset Transferring Party to a member of the Bank Group; and
|
(ii)
|
may then be transferred between various members of the Bank Group, and is finally transferred (insofar as such transaction relates to the Bank Group) to the Borrower Holdco,
|
(c)
|
the consideration payable (if any) by the first member of the Bank Group to acquire such assets comprises either (i) cash funded or to be funded directly or indirectly by a payment from (in the case of an Asset Passthrough of the type described in paragraph (a) above) the Asset Transferring Party and (in the case of an Asset Passthrough of the type described in paragraph (b) above) the Borrower Holdco, in either case, in connection with that series of transactions or (ii) Subordinated Funding or (iii) the issue of one or more securities;
|
(d)
|
the consideration payable by (in the case of an Asset Passthrough of the type described in paragraph (a) above) the Asset Transferring Party is equal to the consideration received or receivable by the Borrower Holdco and (in the case of an Asset Passthrough of the type described in paragraph (b) above) by the Borrower Holdco is equal to the consideration received or receivable by the Asset Transferring Party (and for this purpose, a security issued by one company shall constitute equal consideration to a security issued by another company where such securities have been issued on substantially the same terms and subject to the same conditions);
|
(e)
|
all of the transactions comprising such a series of transactions (from and including the transfer of the assets by the Borrower Holdco to and including the acquisition
|
(f)
|
upon completion of all of the transactions comprising such a series of transactions, no person (other than another member of the Bank Group) has any recourse to any member of the Bank Group and no member of the Bank Group which is not an Obligor may have any recourse to an Obligor, in each case in relation to such a series of transactions (other than in respect of (i) the Subordinated Funding or any rights and obligations under the securities, in each case, mentioned in paragraph ((c) above and (ii) covenants as to title provided, in the case of an Asset Passthrough of the type described in paragraph (a) above, in favour of the Asset Transferring Party on the same terms as such covenants were provided by the Borrower Holdco in respect of the relevant assets and, in the case of an Asset Passthrough of the type described in paragraph (b) above, in favour of the Borrower Holdco on the same terms as such covenants were provided by the Asset Transferring Party in respect of the relevant assets).
|
(a)
|
any other person which is directly or indirectly Controlled by, under common Control with or Controlling such person; or
|
(b)
|
any other person owning beneficially and/or legally directly or indirectly 10 per cent. or more of the equity interest in such person or 10 per cent. of whose equity is owned beneficially and/or legally directly or indirectly by such person.
|
(a)
|
by means of the holding of shares or the possession of voting power in or in relation to any other person; or
|
(b)
|
by virtue of any powers conferred by the articles of association or other documents regulating any other person,
|
(a)
|
in respect of each Term Facility (other than any Additional Facility), the date falling 60 days from the Closing Date; and
|
(b)
|
in respect of the Revolving Facility, the date falling 30 days prior to the Final Maturity Date.
|
(a)
|
any cancellation or reduction of, or any transfer by such Lender or any transfer to it of, any Additional Facility Commitment in relation to that Additional Facility, in each case, pursuant to the terms of this Agreement; and
|
(b)
|
in the case of any proposed Utilisation, the Sterling Amount of its share of (i) such Additional Facility Advance and/or Documentary Credit which pursuant to any other Utilisation Request is to be made, or as the case may be, issued under the Additional Facility, (ii) any Additional Facility Advance in respect of any Additional Facility which is a revolving facility which is due to be repaid or expire and (iii) any Additional Facility Advance and/or Documentary Credit
|
(a)
|
any cancellation or reduction of, or any transfer by such Lender or any transfer to it of, any Revolving Facility Commitment, in each case, pursuant to the terms of this Agreement; and
|
(b)
|
in the case of any proposed Utilisation, the Sterling Amount of its share of (i) such Revolving Facility Advance and/or Documentary Credit which pursuant to any other Utilisation Request is to be made, or as the case may be, issued under the Revolving Facility, and (ii) any Revolving Facility Advance and/or Documentary Credit issued under the Revolving Facility which is due to be repaid
|
(a)
|
for the purposes of the definition of “Bank Group Consolidated Revenues”, Clause 23.2 (
Financial information
), Clause 22 (
Financial Covenant
) and any other provisions of this Agreement using the terms defined in Clause 22 (
Financial Covenant
):
|
(i)
|
the Company and any Permitted Affiliate Parent;
|
(ii)
|
each of the Company’s and any Permitted Affiliate Parent’s other direct and indirect Subsidiaries from time to time, excluding the Bank Group Excluded Subsidiaries; and
|
(iii)
|
without prejudice to paragraph (ii) above, each of the direct and indirect Subsidiaries of Virgin Media Communications, excluding any Subsidiary thereof which has a direct or indirect interest in the Company and excluding the Bank Group Excluded Subsidiaries;
|
(b)
|
for the purposes of the definition of “Hedge Obligor” in the HYD Intercreditor Agreement:
|
(i)
|
the Parent, any Permitted Affiliate Parent and each of their direct and indirect Subsidiaries from time to time, other than the Bank Group Excluded Subsidiaries; and
|
(ii)
|
each of the direct and indirect Subsidiaries of Virgin Media Communications to the extent not already included by virtue of paragraph (i) above, excluding any Subsidiary thereof which has a direct or indirect interest in the Company and excluding the Bank Group Excluded Subsidiaries; and
|
(c)
|
for all other purposes including for the purposes of the definition of “Bank Group” under the Group Intercreditor Agreement:
|
(i)
|
the Company, any Permitted Affiliate Parent and each of their direct and indirect Subsidiaries from time to time, other than the Bank Group Excluded Subsidiaries; and
|
(ii)
|
each of the direct and indirect Subsidiaries from time to time of Virgin Media Communications to the extent not already included by virtue of
|
(a)
|
any Subsidiary of the Company, any Subsidiary of any Permitted Affiliate Parent or any Subsidiary of Virgin Media Communications which is a Dormant Subsidiary and which is not a Guarantor;
|
(b)
|
any Unrestricted Subsidiary;
|
(c)
|
NTL Fawnspring Limited;
|
(d)
|
any Subsidiary of the Company, any Subsidiary of any Permitted Affiliate Parent or any Subsidiary of Virgin Media Communications which is a Project Company;
|
(e)
|
any Asset Securitisation Subsidiary; and
|
(f)
|
any company which becomes a Subsidiary of the Parent, a Subsidiary of any Permitted Affiliate Parent or a Subsidiary of any Virgin Media Communications in each case, after the Signing Date pursuant to an Asset Passthrough,
|
(a)
|
the amount (if any) by which:
|
(i)
|
the interest (excluding the Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in an Advance or Unpaid Sum to the last day of the current Interest Period or Term in respect of that Advance or Unpaid Sum, had the amount so received been paid on the last day of that Interest Period or Term;
|
(ii)
|
the amount which that Lender would be able to obtain by placing an amount equal to the principal amount of such Advance or Unpaid Sum received or recovered by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the Business Day following such receipt or recovery and ending on the last day of the current Interest Period or Term; or
|
(b)
|
for the purposes of Clause 11.4 (
Notice of Prepayment or Cancellation
), the loss suffered by any Lender as a result of having to unwind any funding contract for reinvestment of proceeds which it had entered into or initiated upon receipt of the notice of prepayment and/or cancellation referred to in Clause 11.4 (
Notice of Prepayment or Cancellation
).
|
(a)
|
the provision of broadband and communications services, including:
|
(i)
|
residential telephone, mobile telephone, cable television and Internet services, including wholesale Internet access solutions to Internet service providers;
|
(ii)
|
data, voice and Internet services to large businesses, public sector organisations and small and medium sized enterprises; and
|
(iii)
|
national and international communications transport services to communications companies;
|
(b)
|
the provision of Content;
|
(c)
|
that comprises being a Holding Company of one or more persons engaged in such business referred to in paragraphs (a), (b) and (d) of this definition; and
|
(d)
|
the provision of services substantially the same or similar to those provided by any member of the Wider Group on the First Effective Date,
|
(a)
|
on which banks generally are open for business in London;
|
(b)
|
if such reference relates to a date for the payment or purchase of any sum denominated in euro, which is a TARGET Day;
|
(c)
|
if such reference relates to a date for the payment or purchase of any sum denominated in US$, on which banks generally are open for business in New York; and
|
(d)
|
if such reference relates to a date for the payment or purchase of any sum denominated in an Optional Currency (other than euro or US$), the principal financial centre of the country of that currency.
|
(a)
|
all Cash Equivalent Investments; and
|
(b)
|
cash (in cleared balances) denominated in Sterling (or any other currency freely convertible into Sterling) and credited to an account in the name of a member of the Bank Group or the Parent or any other issuer of Parent Debt (as applicable) with an Acceptable Bank and to which such a member of the Bank Group or the Parent or any other issuer of Parent Debt (as applicable) is alone beneficially entitled and for so long as:
|
(i)
|
such cash is repayable on demand (including any cash held on time deposit which is capable of being broken and the balance received within two Business Days of notice provided that any such cash shall only be taken into account net of any penalties or costs which would be incurred in breaking the relevant time deposit); or
|
(ii)
|
such cash has been deposited with an Acceptable Bank as security for any performance bond, guarantee, standby letter of credit or similar facility the contingent liabilities relating to such having been included in the calculation of Senior Net Debt or Total Net Debt (as applicable),
|
(A)
|
repayment of that cash is not contingent on the prior discharge of any other indebtedness of any member of the Bank Group or the Parent or any other issuer of Parent Debt (as applicable) or of any other person whatsoever or on the satisfaction of any other condition;
|
(B)
|
there is no encumbrance over that cash except for the Security or any encumbrance constituted by a netting or set-off arrangement entered into by members of the Bank Group or the Parent or any other issuer of Parent Debt (as applicable) in the ordinary course of their banking arrangements and any security interest granted in connection with such banking arrangements; and
|
(C)
|
the cash is freely and (except as mentioned in paragraph (ii) above) immediately available to be applied in repayment or prepayment of the Facilities or Financial Indebtedness of the Bank Group, the Parent or any other issuer of Parent Debt (as applicable).
|
(a)
|
debt securities which are freely negotiable and marketable:
|
(i)
|
which mature not more than 12 months from the relevant date of calculation; and
|
(ii)
|
which are rated at least A 1 by Standard & Poor’s or Fitch or P 1 by Moody’s;
|
(b)
|
certificates of deposit of, or time deposits or overnight bank deposits with, any Acceptable Bank or commercial bank whose short-term securities are rated at least A 2 by Standard and Poor’s or Fitch or P 2 by Moody’s and having maturities of 12 months or less from the date of acquisition;
|
(c)
|
commercial paper of, or money market accounts or funds with or issued by, an issuer rated at least A 2 by Standard & Poor’s or Fitch or P 2 by Moody’s (or, if no rating is available in respect of the commercial paper, the issuer of which has, in respect of its long-term unsecured and non-credit enhanced debt obligations, an equivalent rating) and having an original tenor of 12 months or less;
|
(d)
|
medium term fixed or floating rate notes of an issuer rated at least A 1 by Standard & Poor’s or Fitch or P 1 by Moody’s at the time of acquisition and having a remaining term of 12 months or less from the date of acquisition;
|
(e)
|
any investment in a money market fund or enhanced yield fund (i) whose aggregate assets exceed £250,000,000 and (ii) at least 90 per cent. of whose assets constitute Cash Equivalent Investments of the type described in paragraphs (a) to (d) of this definition;
|
(f)
|
any investment in marketable debt obligations issued or guaranteed by the government of the United States of America, the United Kingdom, any member state of the European Economic Area, any Participating Member State or any country in which a member of the Bank Group is incorporated and/or carries out its business, or by an instrumentality or agency of any of them having an equivalent credit rating, maturing within one year after the relevant date of calculation and not convertible or exchangeable to any other security;
|
(g)
|
marketable general obligations issued by any political subdivision of the United States of America, the United Kingdom, any member state of the European
|
(h)
|
sterling bills of exchange eligible for rediscount at the Bank of England and accepted by an Acceptable Bank (or their dematerialised equivalent);
|
(i)
|
repurchase obligations with a term of not more that seven days from underlying securities of the types described in paragraphs (e), (f) and (g) above and entered into with an Acceptable Bank; or
|
(j)
|
any other debt security approved by the Instructing Group,
|
(a)
|
minus Capital Expenditure of or relating to the Target for such period;
|
(b)
|
minus all Taxes actually paid and/or falling due for payment by or in respect of the Target during such period;
|
(c)
|
minus the amount of all dividends, redemptions and other distributions payable by the Target during such period on, or in respect of any of its share capital not held by a member of the Bank Group;
|
(d)
|
minus any increase or plus any decrease in working capital of or in respect of the Target for such period;
|
(e)
|
minus the aggregate of (i) Interest payable by or in respect of the Target during such period and (ii) an amount equal to the Interest that would have been payable in respect of an Advance made during such period in an amount equal to the principal amount of Financial Indebtedness incurred in connection with the
|
(f)
|
minus all extraordinary or exceptional items (including one off restructuring costs) which were paid by the Target during such period on (net of any cash proceeds of insurance or warranty claims which relate to such items) and plus all extraordinary or exceptional items which were received by or in respect of the Target during such period.
|
(a)
|
when designated “
Additional Facility
” in relation to a Lender and an Additional Facility at any time and save as otherwise provided in this Agreement,
|
(i)
|
the amount set opposite its name in the Additional Facility Accession Deed in relation to that Additional Facility and the amount of any other Additional Facility Commitment in relation to that Additional Facility transferred to it under this Agreement;
|
(ii)
|
the amount specified in the Transfer Deed or the Transfer Agreement pursuant to which such Lender becomes a party to this Agreement; and
|
(iii)
|
any amount of that Additional Facility assumed by it in accordance with Clause 2.2 (
Increase
); and
|
(b)
|
when designated “
Revolving Facility
” save as otherwise provided in this Agreement,
|
(i)
|
in relation to an Original Lender, the amount set opposite its name in the relevant column of Part 1 of Schedule 1 (
Lenders and Commitments
) and any amount of any other Revolving Facility Commitment transferred to it under this Agreement or the amount assumed by it in accordance with Clause 2.2 (
Increase
); and
|
(ii)
|
in relation to any other Lender, the amount specified in the Transfer Deed or the Transfer Agreement pursuant to which such Lender becomes a party to this Agreement and any amount of any other Revolving Facility Commitment transferred to it under this Agreement or assumed by it in accordance with Clause 2.2 (
Increase
),
|
(A)
|
not cancelled, reduced or transferred by it under this Agreement; and
|
(B)
|
without any such designation, means an “Additional Facility Commitment” and “Revolving Facility Commitment”, as the context requires, and any “Commitment” means either each or any of the foregoing, as the context requires.
|
(a)
|
which has failed to make its participation in an Advance available or has notified the Facility Agent that it will not make its participation in an Advance available by the Utilisation Date of that Advance in accordance with Clause 4.2 (
Lenders’ Participations
) or has failed to provide cash collateral (or has notified an L/C Bank that it will not provide cash collateral) in accordance with Clause 5.9 (
Cash Collateral by Non-Acceptable L/C Lender
);
|
(b)
|
which has otherwise rescinded or repudiated a Relevant Finance Document;
|
(c)
|
which is an L/C Bank which has failed to issue a Documentary Credit (or has notified the Facility Agent or the Parent (which has notified the Facility Agent) that it will not issue or re-issue a Documentary Credit) in accordance with Clause 5 (
Documentary Credits
) or which has failed to pay a claim (or has notified the Facility Agent or the Parent (which has notified the Facility Agent) that it will not pay a claim) in accordance with (and as defined in) Clause 5.7 (
Claims under a Documentary Credit
); or
|
(d)
|
with respect to which an Insolvency Event has occurred and is continuing,
|
(i)
|
its failure to pay is caused by:
|
(A)
|
administrative or technical error; or
|
(B)
|
a Disruption Event; and
|
(ii)
|
the Lender is disputing in good faith whether it is contractually obliged to make the payment in question.
|
(a)
|
in the Annex to the Executive Order;
|
(b)
|
on the “Specially Designated Nationals and Blocked Persons” list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury; or
|
(c)
|
in any successor list to either of the foregoing.
|
(a)
|
a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facilities (or otherwise in order for the transactions contemplated by the Relevant Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the parties to this Agreement; or
|
(b)
|
the occurrence of any other event which results in a material disruption (of a technical or systems-related nature) to the treasury or payments operations of a
|
(i)
|
from performing its payment obligations under the Relevant Finance Documents; or
|
(ii)
|
from communicating with other parties in accordance with the terms of the Relevant Finance Documents,
|
(a)
|
air (including, without limitation, air within natural or man-made structures, whether above or below ground);
|
(b)
|
water (including, without limitation, territorial, coastal and inland waters, water under or within land and water in drains and sewers); and
|
(c)
|
land (including, without limitation, land under water).
|
(a)
|
the pollution or protection of the Environment;
|
(b)
|
the conditions of the workplace; or
|
(c)
|
the generation, handling, storage, use, release or spillage of any substance which, alone or in combination with any other, is capable of causing harm to the Environment, including, without limitation, any waste.
|
(a)
|
may not be repaid at any time prior to the repayment in full of all Outstandings and cancellation of all Available Commitments;
|
(b)
|
carries no interest or carries interest which is payable only on non-cash pay terms or following repayment in full of all Outstandings and cancellation of all Available Commitments;
|
(c)
|
is either (i) structurally and contractually subordinated to the Facilities or (ii) contractually subordinated to the Facilities, in each case, pursuant to the HYD Intercreditor Agreement and/or the Group Intercreditor Agreement; and
|
(d)
|
if not already subject to Security created under the Original Security Documents, Security in favour of the Security Trustee on terms satisfactory to the Security Trustee is promptly granted by the relevant creditor over its rights with respect to any such Financial Indebtedness.
|
(a)
|
the applicable Screen Rate as of the Specified Time for euro and for a period equal in length to the Interest Period or Term of that Advance; or
|
(b)
|
as otherwise determined pursuant to Clause 15.1 (
Unavailability of Screen Rate
).
|
(a)
|
on or before the date it becomes a Lender; or
|
(b)
|
by not less than five Business Days’ notice,
|
(c)
|
as the office(s) through which it will perform all or any of its obligations under this Agreement.
|
(a)
|
sections 1471 to 1474 of the Code or any associated regulations;
|
(b)
|
any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or
|
(c)
|
any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.
|
(a)
|
in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interests and certain other sources within the US), 1 July 2014;
|
(b)
|
in relation to a “withholdable payment” described at Section 1473(1)(A)(ii) of the Code (which relates to gross proceeds” from the disposition of property of a type that can produce interest from sources within the US, 1 January 2017; or
|
(c)
|
in relation to a “passthru payment” described in section 1471(d)7 of the Code not falling within paragraphs (a) and (b) above, 1 January 2017,
|
(a)
|
in respect of the Revolving Facility, 31 December 2021; and
|
(b)
|
in respect of an Additional Facility, as agreed by the Company and the relevant Additional Facility Lenders in the relevant Additional Facility Accession Deed, but subject to Clause 2.5 (
Additional Facilities
).
|
(a)
|
any Relevant Finance Document;
|
(b)
|
any Senior Secured Notes Document; and
|
(c)
|
any other agreement or document designated a “Finance Document” in writing by the Facility Agent and the Company.
|
(a)
|
money borrowed or raised and debit balances at banks or other financial institutions;
|
(b)
|
any bond, note, loan stock, debenture or similar debt instrument;
|
(c)
|
acceptance or documentary credit facilities;
|
(d)
|
any amount raised under any other transaction (including forward sale or purchase agreements) required to be accounted for as a borrowing in accordance with the Relevant Accounting Principles;
|
(e)
|
(for the purposes of Clause
26.5
(
Cross default
) only) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked-to-market value (or, if any actual amount is due as a result of the termination or close-out of all or part of that derivative transaction, that amount together with the marked-to-market value of any part of that derivative transaction in respect of which no amount is due as a result of a termination or close-out) shall be taken into account); and
|
(f)
|
guarantees in respect of indebtedness of any person falling within any of paragraphs (a) to (e) above (including for the avoidance of doubt, without double counting, guarantees given by a member of the Bank Group for the indebtedness of the type falling within (a) to (e) above of another member of the Bank Group),
|
(i)
|
indebtedness which has been cash-collateralised to the extent so cash-collateralised;
|
(ii)
|
any obligations to make payments in relation to earn outs;
|
(iii)
|
any pension obligations;
|
(iv)
|
receivables sold or discounted, whether recourse or non-recourse, including for the avoidance of doubt any indebtedness in respect of an asset securitisation programme or receivables factoring transaction, or its equivalent in each case, and any related credit support and any indebtedness in respect of Limited Recourse;
|
(v)
|
any payments for assets acquired or services supplied which are deferred;
|
(vi)
|
indebtedness raised through sale and lease back transactions;
|
(vii)
|
any deposits or prepayments received by any member of the Bank Group from a customer or subscriber for its service;
|
(viii)
|
indebtedness which is in the nature of equity (other than redeemable shares);
|
(ix)
|
obligations under Finance Leases; and
|
(x)
|
any parallel debt obligations to the extent such obligations mirror other Financial Indebtedness.
|
(a)
|
indirectly receives funding from the Borrower Holdco; and/or
|
(b)
|
by way of dividend or other distribution, loan or payment of interest on or the repayment of the principal amount of any indebtedness owed by it, directly or indirectly, makes a payment to the Borrower Holdco.
|
(a)
|
in the case of funding being provided by the Borrower Holdco to the Funded Excluded Subsidiary, that funding is:
|
(i)
|
first made available by the Borrower Holdco to (in the case of the Parent) the Company or, one of its Subsidiaries (other than in the case of Virgin Media Communications, the Parent or any of its Subsidiaries) by way of
|
(ii)
|
secondly (if relevant) made available by the recipient of the Funding Passthrough under (i) above, to a member of the Bank Group (other than the Company) which may be followed by one or more transactions between members of the Bank Group (other than the Company) and finally made available by a member of the Bank Group (other than the Company) to the Funded Excluded Subsidiary in all such cases by way of either the subscription for new securities, the advancing of loans or capital contribution; or
|
(b)
|
in the case of a payment to be made by the Funded Excluded Subsidiary to the Borrower Holdco that payment is:
|
(i)
|
first made by the Funded Excluded Subsidiary to a member of the Bank Group, and thereafter is made between members of the Bank Group (as relevant), by way of dividend or other distribution, loan or payment of interest on or the repayment of the principal amount of any indebtedness owed by such Funded Excluded Subsidiary or relevant member of the Bank Group; and
|
(ii)
|
finally made by the Company to the Parent or by one of the Subsidiaries of Virgin Media Communications (other than the Parent or any of its Subsidiaries) to Virgin Media Communications by way of dividend or other distribution, loan or the payment of interest on or the repayment of the principal amount of any loan made by way of Subordinated Funding.
|
(a)
|
for the purposes of Clause 28 (
Guarantee and Indemnity
), the Original Guarantors and any Acceding Guarantors; and
|
(b)
|
for the purposes of any other provision of the Relevant Finance Documents, the Original Guarantors (other than the Parent) and any Acceding Guarantors,
|
(a)
|
the principal amount of any such Financial Indebtedness shall not exceed the principal amount of, and any outstanding interest on, the Financial Indebtedness being refinanced (plus all fees, expenses, commissions, make-whole or other contractual premium payable in connection with such refinancing);
|
(b)
|
it is unsecured, except that where such Financial Indebtedness is issued by the Parent or any Permitted Affiliate Holdco, it may be secured by a pledge of the shares in the Parent or any Permitted Affiliate Holdco or one of their parent companies (as applicable) if such Financial Indebtedness is unable to receive the benefit of the subordinated guarantees of the Company and/or Intermediate Holdco contemplated by paragraph (c) below, for tax or other reasons as reasonably determined by the Company; and
|
(c)
|
if such Financial Indebtedness is guaranteed, it is not guaranteed by any member of the Bank Group other than the Company and/or Intermediate Holdco, provided that any such guarantee or guarantees so provided are (i) granted on subordination and release terms substantially the same as the existing guarantees of the Company and Intermediate Holdco in favour of the Existing High Yield Notes and (ii) subject to the terms of the HYD Intercreditor Agreement or a Supplemental HYD Intercreditor Agreement.
|
(a)
|
costs (including all professional fees and expenses) incurred by the Ultimate Parent and its Subsidiaries from time to time in connection with reporting obligations under or otherwise incurred in connection with compliance with applicable laws, applicable rules or regulations of any governmental, regulatory or self-regulatory body or stock exchange, this Agreement or any other agreement
|
(b)
|
indemnification obligations of the Ultimate Parent and its Subsidiaries from time to time owing to directors, officers, employees or other persons under its charter or by-laws or pursuant to written agreements with any such person with respect to ownership of the Parent or any Permitted Affiliate Parent or the conduct of the business of the Bank Group;
|
(c)
|
obligations of the Ultimate Parent and its Subsidiaries from time to time in respect of director and officer insurance (including premiums therefor) with respect to ownership of the Parent, the Ultimate Parent or any Permitted Affiliate Parent or the conduct of the business of the Bank Group; and
|
(d)
|
general corporate overhead expenses, including professional fees and expenses and other operational expenses of the Ultimate Parent and its Subsidiaries from time to time related to the ownership or operation of the business of the Parent or any member of the Bank Group, including acquisitions or dispositions by a member of the Bank Group permitted hereunder (whether or not successful) in each case, to the extent such costs, obligations and/or expenses are not paid by another Subsidiary of such person.
|
(a)
|
it has failed to make (or has notified a Relevant Finance Party that it will not make) a payment required to be made by it under the Relevant Finance Documents by the due date for payment;
|
(b)
|
the Facility Agent otherwise rescinds or repudiates a Relevant Finance Document;
|
(c)
|
(if the Facility Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of “Defaulting Lender”; or
|
(d)
|
an Insolvency Event has occurred and is continuing with respect to the Facility Agent,
|
(i)
|
its failure to pay is caused by:
|
(A)
|
administrative or technical error; or
|
(B)
|
a Disruption Event; and
|
(ii)
|
the Facility Agent is disputing in good faith whether it is contractually obliged to make the payment in question.
|
(a)
|
any reduction in the rate of return from a Facility or on a Relevant Finance Party’s (or an Affiliate’s) overall capital;
|
(b)
|
any additional or increased cost; or
|
(c)
|
any reduction of any amount due and payable under any Relevant Finance Document,
|
(a)
|
at any time, Lenders the aggregate of whose Available Commitment and participations in outstanding Advances exceeds 50.00 per cent. of the aggregate undrawn Total Commitments and the outstanding Advances of all the Lenders calculated in accordance with the provisions of Clause 42.10 (
Calculation of Consent
) provided that, in relation to a Facility, the “
Instructing Group
” means at any time, Lenders the aggregate of whose Available Commitments under that Facility and participations in outstanding Advances under that Facility exceeds
|
(b)
|
notwithstanding the foregoing, for the purposes of the definition of Instructing Group in the Group Intercreditor Agreement and the HYD Intercreditor Agreement, the Senior Finance Parties (as defined in the Group Intercreditor Agreement) representing a majority of the aggregate outstanding principal amount and undrawn uncancelled commitments under the Senior Finance Documents (as defined in the Group Intercreditor Agreement) at the relevant date of determination.
|
(a)
|
is dissolved (other than pursuant to a consolidation, amalgamation or merger);
|
(b)
|
becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;
|
(c)
|
makes a general assignment, arrangement or composition with or for the benefit of its creditors;
|
(d)
|
institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official;
|
(e)
|
has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and:
|
(i)
|
results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or
|
(ii)
|
is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;
|
(f)
|
has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);
|
(g)
|
seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets (other than, for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in paragraph (d) above);
|
(h)
|
has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter; or
|
(i)
|
causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above.
|
(a)
|
the most recent applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period or Term of that Advance; and
|
(b)
|
the most recent applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period or Term of that Advance,
|
(a)
|
the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period or Term of that Advance; and
|
(b)
|
the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period or Term of that Advance,
|
(a)
|
the sale of programming or other Content by any member(s) of the Wider Group to one or more members of the Bank Group on arms’ length terms;
|
(b)
|
the lease or sublease of office space, other premises or equipment on arms’ length terms by one or more members of the Bank Group to one or more members of the Wider Group or by one or more members of the Wider Group to one or more members of the Bank Group;
|
(c)
|
the provision or receipt of other goods, services, facilities or other arrangements (in each case not constituting Financial Indebtedness) in the ordinary course of business, by or from one or more members of the Bank Group to or from one or more members of the Wider Group including, without limitation, (i) the employment of personnel, (ii) provision of employee healthcare or other benefits, (iii) acting as agent to buy equipment, other assets or services or to trade with residential or business customers, and (iv) the provision of audit, accounting, banking, branding, marketing, network, technology, research and development, installation and customer service, telephony, office, administrative, compliance, payroll or other similar services provided that the consideration for the provision thereof is, in the reasonable opinion of the Company, no less than Cost; and
|
(d)
|
the extension, in the ordinary course of business and on terms not materially less favourable to the relevant member of the Bank Group than arms’ length terms, by or to any member of the Bank Group to or by any such member of the Wider Group of trade credit not constituting Financial Indebtedness in relation to the provision or receipt of Intra-Group Services referred to in paragraphs (a), (b) or (c) above.
|
(a)
|
common or customary law;
|
(b)
|
any constitution, decree, judgment, legislation, order, ordinance, regulation, statute, treaty or other legislative measure in any jurisdiction; and
|
(c)
|
any directive, regulation, practice, requirement which has the force of law and which is issued by any governmental body, agency or department or any central bank or other fiscal, monetary, regulatory, self-regulatory or other authority or agency.
|
(a)
|
in respect of any Documentary Credit issued under the Revolving Facility and save as otherwise provided in this Agreement, the proportion (expressed as a percentage) borne by such Lender’s Available Revolving Facility Commitment to the Available Revolving Facility immediately prior to the issue of such Documentary Credit; and
|
(b)
|
in respect of any Documentary Credit issued under an Additional Facility and save as otherwise provided in this Agreement, the proportion (expressed as a percentage) borne by such Lender’s Available Additional Facility Commitment to the aggregate of all Available Additional Facility Commitments in relation to that Additional Facility immediately prior to the issue of such Documentary Credit.
|
(a)
|
an Original Lender;
|
(b)
|
a person (including each L/C Bank and each Ancillary Facility Lender) which has become a party to this Agreement as a Lender in accordance with the provisions of Clause 36 (
Assignments and Transfers
);
|
(c)
|
a person (including each L/C Bank and each Ancillary Facility Lender) which has become a party to this Agreement as a Lender by executing an Additional Facility Accession Deed,
|
(a)
|
the applicable Screen Rate as of the Specified Time for the currency of that Advance and for a period equal in length to the Interest Period or Term of that Advance; or
|
(b)
|
as otherwise determined pursuant to Clause 15.1 (
Unavailability of Screen Rate
).
|
(a)
|
is not an Acceptable Bank within the meaning of paragraph (a) of the definition of “Acceptable Bank” (other than a Lender which each L/C Bank has agreed is acceptable to it notwithstanding that fact, an Original Lender or any Lender to whom a participation from an Original Lender is transferred within seven Business Days of the date of this Agreement); or
|
(b)
|
is a Defaulting Lender; or
|
(c)
|
has failed to make (or has notified the Facility Agent that it will not make) a payment to be made by it under Clause 29.10 (
Lender’s Indemnity
) or any other payment to be made by it under the Relevant Finance Documents to or for the account of any other Relevant Finance Party in its capacity as Lender by the due date for payment unless the failure to pay falls within the description of any of those items set out at (i) and (ii) of the definition of Defaulting Lender.
|
(a)
|
the Company or the Facility Agent has requested the Lenders to consent to an amendment to, or waiver, of any provision of the Relevant Finance Documents;
|
(b)
|
the consent or amendment in question requires the agreement of the Lenders affected thereby pursuant to Clause 42.2 (
Consents
) (and such Lender is one of the Lenders affected thereby);
|
(c)
|
Lenders representing not less than 80 per cent. of the Commitments or Outstandings, as the case may be, of the Lenders affected thereby have agreed to such consent or amendment; and
|
(d)
|
the Company has notified the Lender it will treat it as a Non-Consenting Lender.
|
(a)
|
a Lender which fails to comply with its obligation to participate in any Advance where:
|
(i)
|
all conditions to the relevant Utilisation (including without limitation, delivery of a Utilisation Request) have been satisfied or waived by the Instructing Group in accordance with the terms of this Agreement;
|
(ii)
|
Lenders representing not less than 80 per cent. of the relevant Commitments have agreed to comply with their obligations to participate in such Advance; and
|
(iii)
|
the Company has notified the Lender that it will treat it as a Non-Funding Lender;
|
(b)
|
a Lender which has given notice to a Borrower or the Facility Agent that it will not make, or it has disaffirmed or repudiated any obligation to participate in, an Advance; or
|
(c)
|
a Defaulting Lender.
|
(a)
|
is readily available to banks in the London interbank market, and is freely convertible into Sterling on the Quotation Date and the Utilisation Date for the relevant Advance; and
|
(b)
|
has been approved by the Facility Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Facility Agent of the relevant Utilisation Request.
|
(a)
|
each sum paid or payable by an L/C Bank to a Beneficiary pursuant to the terms of a Documentary Credit; and
|
(b)
|
all liabilities, costs (including, without limitation, any costs incurred in funding any amount which falls due from an L/C Bank under a Documentary Credit), claims, losses and expenses which an L/C Bank (or any of the L/C Lenders) incurs or sustains in connection with a Documentary Credit,
|
(a)
|
High Yield Notes; and/or
|
(b)
|
any Financial Indebtedness incurred after the Signing Date where the incurrence of such Financial Indebtedness would not result in the ratio (giving effect to such incurrence and the ultimate use of proceeds thereof, which shall not include any cash balances) on the Quarter Date prior to such incurrence (giving pro forma effect to any movement of cash out of the Bank Group since such date pursuant to any Permitted Payments) exceeding a Total Net Debt to Annualised EBITDA ratio of 5.50:1,
|
(a)
|
which is subordinated to the Facilities pursuant to the terms of the Group Intercreditor Agreement and the HYD Intercreditor Agreement;
|
(b)
|
if not already subject to Security created under the Original Security Documents, Security in favour of the Security Trustee on terms satisfactory to the Security Trustee is promptly granted by the relevant creditor over its rights; and
|
(c)
|
if such Financial Indebtedness is in form of a guarantee, then such guarantee is not given by any member of the Bank Group other than the Company and/or Intermediate Holdco provided that any such guarantee so provided is (i) on subordination and release terms substantially the same as the existing guarantees of the Company and Intermediate Holdco in favour of the Existing High Yield Notes and (ii) subject to the terms of the HYD Intercreditor Agreement or Supplemental HYD Intercreditor Agreement.
|
(a)
|
any Acquisition of a member of the Bank Group by any other member of the Bank Group as part of the solvent reorganisation of the Bank Group;
|
(b)
|
any Acquisition or purchase of further share capital or equivalent by a member of the Bank Group in any existing member of the Bank Group;
|
(c)
|
the purchase of or investment in Cash Equivalent Investments or Marketable Securities (including without limitation by way of consideration in respect of any disposal as contemplated in the proviso to Clause 23.11 (
Disposals
) and subject to the conditions set out therein);
|
(d)
|
the incorporation of a company or the acquisition of an “off-the-shelf” company which is or becomes a member of the Bank Group;
|
(e)
|
any acquisition by any member of the Bank Group in connection with a disposal permitted by the provisions of Clause 23.11 (
Disposals
) and any acquisition or subscription by a member of the Bank Group of shares issued by a Subsidiary of the Company, a Subsidiary of any Permitted Affiliate Parent or a Subsidiary of Virgin Media Communications which in any such case, is a member of the Bank Group which will, after the acquisition of such shares become a wholly-owned direct or indirect Subsidiary of the Company, a Subsidiary of any Permitted Affiliate Parent or a Subsidiary of Virgin Media Communications as the case may be, provided that if the other shares of such Subsidiary are subject to existing Security and if such shares are required to remain subject to Security in order to comply with the 80% Security Test pursuant to Clause 23.26(b)(i)
|
(f)
|
any acquisition made by a member of the Bank Group pursuant to the implementation of an Asset Passthrough or a Funding Passthrough;
|
(g)
|
any acquisition by any member of the Bank Group of any loan receivable, security or other asset by way of capital contribution or in consideration of the issue of any securities or of Subordinated Funding;
|
(h)
|
the acquisition of any leasehold interest in any assets which are the subject of a sale and leaseback permitted by the provisions of Clause 23.11(b) (
Disposals
);
|
(i)
|
arising from the conversion of any company (the “
Original Company
”) from one form of organisation into another form of organisation provided that (i) if, prior to the time of such conversion, the Security Trustee has the benefit of Security over the shares of such Original Company or such Original Company is an Obligor, then the Company shall ensure that the Security Trustee is provided with Security over the equivalent ownership interests in, and substantially all of the assets of, the converted organisation, of at least an equivalent nature and ranking to the Security previously provided by the Original Company and (ii) the Security Trustee is satisfied that any possibility of the additional Security referred to in this paragraph (h) being challenged or set aside is not greater than any such possibility in relation to the Security entered into by or in respect of the share capital of the Original Company;
|
(j)
|
any acquisition by any member of the Bank Group of any High Yield Notes provided that an amount equal to the purchase price paid for the acquisition of any such High Yield Notes could have been used by such member of the Bank Group to fund a Permitted Payment and provided further that to the extent any such acquisition is made in reliance on any basket amount provided for under the definition of “
Permitted Payments
”, such amount shall be reduced by an amount equal to the consideration paid for any such acquisition;
|
(k)
|
investments in any Asset Securitisation Subsidiary in connection with any asset securitisation programme or receivables factoring transaction that is reasonably necessary or advisable (in the reasonable judgment of the board of directors or governing body of the relevant person) to effect such asset securitisation programme or receivables factoring transaction;
|
(l)
|
any Acquisition where, upon completion of the Acquisition, the person acquired will be a Subsidiary of the Company, a Subsidiary of any Permitted Affiliate Parent or a Subsidiary of another member of the Bank Group where the Company or such other member of the Bank Group will own directly or indirectly greater than a 50 per cent. interest in the asset or assets constituting the acquired business (a “
Majority Acquisition
”) and where:
|
(i)
|
the business of the acquired entity or the business acquired, as the case may be, is substantially of the same nature as the Business and would not result in the Company or any Obligor or any other member of the Bank Group being in violation of any applicable law, directive, national statute or administrative regulation relating to money-laundering, unlawful financial activities or unlawful use or appropriation of corporate funds including economic or financial sanctions or trade embargoes imposed by the US (including those administered by the Office of Foreign Assets Control of the US Department of Treasury (“
OFAC
”) or equivalent European Union measure);
|
(ii)
|
in the case of any Majority Acquisition where the Acquisition Cost is £250,000,000 or greater, the Company delivers to the Facility Agent within 60 days of the date of any such Majority Acquisition:
|
(A)
|
the most recent six months management accounts of or relating to the Target, together with a certificate signed an authorised signatory of the Company certifying the amount of the Cash Flow of the Target for the most recent six months and setting out the supporting calculations;
|
(B)
|
a certificate signed by an authorised signatory of the Company which certifies that, if the ratio of Senior Net Debt to Annualised EBITDA of the Bank Group is calculated for the most recent Ratio Period ending prior to the date of the Acquisition for which financial statements have been delivered pursuant to Clause 23.2 (
Financial information
) (the “
Relevant Ratio Period
”) but adding to the:
|
(1)
|
amount of Senior Net Debt used in such calculation any net increase in the Senior Net Debt of the Bank Group since the end of the Relevant Ratio Period or subtracting from the amount of Senior Net Debt used in such calculation any net deduction in the Senior Net Debt of the Bank Group (in each case taking into account the amount of Senior Net Debt used to fund the Acquisition
|
(2)
|
Annualised EBITDA of the Bank Group, the Annualised EBITDA of the Target for the Relevant Ratio Period,
|
(m)
|
the UPC Ireland Acquisition;
|
(n)
|
any purchase or acquisition of any assets in the ordinary course of business; and
|
(o)
|
acquisitions not falling within paragraphs (a) to (n) above provided that the aggregate consideration for the acquisitions permitted by this paragraph (o) shall not exceed £300,000,000.
|
(a)
|
any Acquisition referred to in paragraph (a) of the definition of “
Permitted Acquisition
” and any Acquisition as a result of a reorganisation of a person that is not a Subsidiary of the Company or a Subsidiary of any Permitted Affiliate Parent but in which a member of the Bank Group has an interest, provided that such reorganisation does not result in an overall increase in the value of the Bank Group’s interest in that person, other than adjustments to the basis of any member
|
(b)
|
the acquisition of any interest in or any investment in, any Joint Venture constituting a Business Division Transaction;
|
(c)
|
any Acquisition where, upon completion of the Acquisition, the person acquired will not be a Subsidiary of the Company, a Subsidiary of any Permitted Affiliate Parent or a Subsidiary of any other member of the Bank Group where the Company or another member of the Bank Group will own directly or indirectly no more than a 50 per cent. interest in the asset or assets constituting the acquired business (a “
JV Minority Acquisition
”) and where:
|
(i)
|
the business of the acquired entity or the business acquired, as the case may be, is of substantially the same nature as the Business;
|
(ii)
|
in the case of any JV Minority Acquisition where the Acquisition Cost is £250,000,000 or greater, the Company delivers to the Facility Agent within 60 days of the date of any such JV Minority Acquisition:
|
(A)
|
the most recent six months management accounts of or relating to the Target, together with a certificate signed by an authorised signatory of the Company certifying the amount of the Cash Flow of the Target for the most recent six months and setting out the supporting calculations; and
|
(B)
|
a certificate signed by an authorised signatory of the Company which certifies that (x) no Default has occurred and is continuing or would be caused by the JV Minority Acquisition and (y) if the ratio of Senior Net Debt to Annualised EBITDA of the Bank Group is calculated for the most recent Ratio Period ending prior to the date of the Acquisition for which financial statements have been delivered pursuant to Clause 23.2 (
Financial information
) (the “
Relevant Ratio Period
”) but adding to the:
|
(1)
|
amount of Senior Net Debt used in such calculation any net increase in the Senior Net Debt of the Bank Group since the end of the Relevant Ratio Period or subtracting from the amount of Senior Net Debt used in such calculation any net deduction in the Senior Net Debt of the Bank Group since the end of the Relevant Ratio Period (in each case taking into account the amount of Senior Net Debt used to fund the Acquisition Costs); and
|
(2)
|
Annualised EBITDA of the Bank Group, the Annualised EBITDA of the Target for the Relevant Ratio Period,
|
(a)
|
any disposal required, Financial Indebtedness incurred, guarantee, indemnity or Security given, or other transaction arising, under the Finance Documents;
|
(b)
|
the solvent liquidation or reorganisation of any member of the Group which is not an Obligor so long as any payments or assets distributed as a result of such liquidation or reorganisation are distributed to other members of the Group;
|
(c)
|
transactions (other than (i) any sale, lease, license, transfer or other disposal and (ii) the granting or creation of Security or the incurring or permitting to subsist of Financial Indebtedness) conducted in the ordinary course of trading on arm’s length terms;
|
(d)
|
any payments or other transactions contemplated by the Structure Memorandum or the Funds Flow Memorandum;
|
(e)
|
the UPC Ireland Acquisition;
|
(f)
|
the Post-Closing Reorganisation;
|
(g)
|
the Spin-Off;
|
(h)
|
any internal corporate reorganization reasonably required in connection with, or to effect, any asset securitisation programme or a receivables factoring transaction; or
|
(i)
|
any transaction with the prior consent of the Instructing Group.
|
(a)
|
in relation to an Advance to be made under this Agreement, the proportion borne by such Lender’s Available Commitment in respect of the relevant Facility, the relevant Borrowers and the relevant currency to the relevant Available Facility;
|
(b)
|
in relation to an Advance or Advances outstanding under this Agreement, the proportion borne by such Lender’s share of the Sterling Amount of such Advance or Advances to the total Sterling Amount thereof;
|
(c)
|
if paragraph (a) above does not apply and there are no Outstandings, the proportion borne by the aggregate of such Lender’s Available Commitment to the Available Facilities (or if the Available Facilities are then zero, by its Available Commitment to the Available Facilities immediately prior to their reduction to zero); and
|
(d)
|
if paragraph (b) above does not apply and there are any Outstandings, the proportion borne by such Lender’s share of the Sterling Amount of the Outstandings to the Sterling Amount of all the Outstandings for the time being.
|
(a)
|
a UK Bank Lender;
|
(b)
|
a UK Non-Bank Lender; or
|
(c)
|
a UK Treaty Lender.
|
(a)
|
if the relevant currency is Sterling, the first day of that period;
|
(b)
|
if the relevant currency is euro, two TARGET Days before the first day of that period; or
|
(c)
|
in relation to any other currency, two Business Days before the first day of that period,
|
(a)
|
in relation to LIBOR:
|
(i)
|
(other than where paragraph (ii) below applies) as the rate at which the relevant Reference Bank could borrow funds in the London interbank market in the relevant currency and for the relevant period were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period; or
|
(ii)
|
if different, as the rate (if any and applied to the relevant Reference Bank and the relevant currency and period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator; or
|
(b)
|
in relation to EURIBOR:
|
(i)
|
(other than where paragraph (ii) below applies) as the rate at which the relevant Reference Bank believes one prime bank is quoting to another prime bank for interbank term deposits in euro within the Participating Member States for the relevant period; or
|
(ii)
|
if different, as the rate (if any and applied to the relevant Reference Bank and the relevant period) which contributors to the applicable Screen Rate are asked to submit to the relevant administrator.
|
(a)
|
this Agreement, any Documentary Credit, any Accession Notice, any Transfer Deed and any Transfer Agreement;
|
(b)
|
the Fee Letters;
|
(c)
|
the Commitment Letter;
|
(d)
|
any Ancillary Facility Documents;
|
(e)
|
the Security Documents;
|
(f)
|
the Security Trust Agreement;
|
(g)
|
the Group Intercreditor Agreement;
|
(h)
|
the HYD Intercreditor Agreement and any Supplemental HYD Intercreditor Agreement;
|
(i)
|
the Barclays Intercreditor Agreement;
|
(j)
|
the Hedging Agreements entered into pursuant to Clause 23.25 (
Hedging
);
|
(k)
|
each Additional Facility Accession Deed;
|
(l)
|
each Utilisation Request;
|
(m)
|
any Resignation Letter; and
|
(n)
|
any other agreement or document designated a “Relevant Finance Document” in writing by the Facility Agent and the Company.
|
(a)
|
the United Kingdom, in relation to a UK Borrower; and
|
(b)
|
any jurisdiction in which any person is liable to tax by reason of its domicile, residence, place of management or other similar criteria (but not any jurisdiction
|
(a)
|
in relation to any Revolving Facility Advance, the last day of its Term;
|
(b)
|
in respect of the Additional Facility Outstandings on the relevant Final Maturity Date,
|
(a)
|
an event specified as such in section 4043 of ERISA or any regulation, other than an event in relation to which the requirement to give notice of that event is waived by any regulation; or
|
(b)
|
a failure to meet the minimum funding standard under section 412 of the Code or section 302 of ERISA, whether or not there has been any waiver of notice or waiver of the minimum funding standard under section 412 of the Code.
|
(a)
|
prior to any Permitted Affiliate Group Designation Date, the Company, Virgin Media Inc. or any other Holding Company of the Company notified by the Company to the Facility Agent; and
|
(b)
|
on or following any Permitted Affiliate Group Designation Date, the Common Holding Company or any other Holding Company of the Common Holding Company notified by the Company to the Facility Agent;
|
(a)
|
each of the Original Guarantors listed in Part 1 of Schedule 2 (
The Original Guarantors
); and
|
(b)
|
any other Guarantor that accedes to this Agreement pursuant to Clause 25.3 (
Acceding Guarantors
), which is (i) incorporated, created or organised under the laws of the United States or any State of the United States (including the District of Columbia) and is a “United States person” (as defined in Section 7701(a)(30) of the Code); or (ii) treated for US federal income tax purposes as a disregarded entity that is a branch of a Guarantor described in paragraph (b)(i) hereof.
|
(a)
|
£500,000,000 (or its equivalent in other currencies); and
|
(b)
|
0.25 multiplied by Annualised EBITDA for the most recent Ratio Period.
|
(a)
|
before any Utilisation of the Revolving Facility under this Agreement, a Lender or group of Lenders whose Available Revolving Facility Commitments amount in aggregate to more than 50 per cent. of the Available Revolving Facility; and
|
(b)
|
thereafter, a Lender or group of Lenders to whom in aggregate more than 50 per cent. of the aggregate amount of the Revolving Facility Outstandings are (or if there are no Revolving Facility Outstandings at such time, immediately prior to their repayment, were then) owed,
|
(a)
|
in relation to LIBOR, the London interbank offered rate administered by the ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on pages LIBOR01 or LIBOR02 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate); and
|
(b)
|
in relation to EURIBOR, the euro interbank offered rate administered by the European Money Markets Institute (or any other person which takes over the administration of that rate) for the relevant period displayed on page EURIBOR01 of the Thomson Reuters screen (or any replacement Thomson Reuters page which displays that rate),
|
(a)
|
each of the Original Security Documents;
|
(b)
|
any security documents required to be delivered by an Acceding Obligor pursuant to Clauses 25.2 (
Acceding Borrowers
) and 25.3 (
Acceding Guarantors
);
|
(c)
|
any other document executed at any time by any member of the Group conferring or evidencing any Security Interest for or in respect of any of the obligations of the Obligors under this Agreement whether or not specifically required by this Agreement; and
|
(d)
|
any other document executed at any time pursuant to Clause 23.26 (
Further Assurance
) or any similar covenant in any of the Security Documents referred to in paragraphs (a) to (c) above.
|
(a)
|
the principal amount of any such notes shall not exceed the principal amount of, and any outstanding interest on, the Financial Indebtedness being refinanced (plus all fees, expenses, commissions, make-whole or other contractual premium payable in connection with such refinancing); and
|
(b)
|
such notes satisfy the requirements of paragraphs (a), (b), (c), (d) and (e) of the definition of Additional Senior Secured Notes.
|
(a)
|
Virgin Media Secured Finance PLC; and
|
(b)
|
any other Subsidiary directly and wholly-owned by either:
|
(i)
|
the Company engaged in the business of effecting or facilitating the issuance of Senior Secured Notes and on-lending the proceeds to the Company;
|
(ii)
|
the Parent engaged in the business of effecting or facilitating the issuance of Senior Secured Notes and on-lending the proceeds to the Parent and/or the Company; or
|
(iii)
|
any Permitted Affiliate Parent engaged in the business of effecting or facilitating the issuance of Senior Secured Notes and on-lending the proceeds to any other member of the Bank Group,
|
(a)
|
in relation to an Advance denominated in Sterling, the amount thereof, and in relation to any other Advance, the Sterling equivalent of the amount specified in the Utilisation Request (as at the date thereof) for that Advance, in each case, as adjusted, if necessary, in accordance with the terms of this Agreement and to reflect any repayment, consolidation or division of that Advance;
|
(b)
|
in relation to a Documentary Credit, (i) if such Documentary Credit is denominated in Sterling, the Outstanding L/C Amount in relation to it at such time or (ii) if such Documentary Credit is not denominated in Sterling, the equivalent in Sterling of the Outstanding L/C Amount at such time, calculated as at the later of (A) the date which falls two Business Days before its issue date or any renewal date or (B) the date of any revaluation pursuant to Clause 5.5 (
Revaluation of Documentary Credits
);
|
(c)
|
in relation to any Ancillary Facility granted by a Lender, the amount of its Revolving Facility Commitment or Additional Facility Commitment converted to provide its Ancillary Facility Commitment as at the time of such conversion; and
|
(d)
|
in relation to any Outstandings, the aggregate of the Sterling Amounts (calculated in accordance with paragraphs (a), (b) and (c) above) of each outstanding Advance and/or Outstanding L/C Amount, made under the relevant Facility or Facilities (as the case may be) and/or in relation to Ancillary Facility Outstandings, (i) if such Outstandings are denominated in Sterling, the aggregate amount of such Outstandings at such time and (ii) if such Outstandings are not denominated in Sterling, the Sterling equivalent of the aggregate amount of such Outstandings at such time.
|
(a)
|
constitutes Parent Intercompany Debt;
|
(b)
|
is an intercompany loan existing as at 16 March 2010 (including any inter-company loan the benefit of which has, at any time after the 16 March 2010, been assigned to any other member of the Wider Group, where such assignment is not otherwise prohibited by this Agreement); or
|
(c)
|
constitutes Equity Equivalent Funding,
|
(i)
|
if not already subject to Security, Security in favour of the Security Trustee on terms satisfactory to the Security Trustee is promptly granted by the relevant creditor over its rights with respect to any such Financial Indebtedness; and
|
(ii)
|
the relevant debtor and creditor are party to the Group Intercreditor Agreement and the HYD Intercreditor Agreement as an Intergroup Debtor or Intergroup Creditor (as such terms are defined in the Group Intercreditor Agreement and the HYD Intercreditor Agreement), as
|
(a)
|
a FATCA Deduction; or
|
(b)
|
a deduction or withholding for or on account of any Bank Levy (or otherwise attributable to, or arising as a consequence of, a Bank Levy).
|
(a)
|
in relation to a Revolving Facility Advance, the period for which such Advance is borrowed as specified in the relevant Utilisation Request; and
|
(b)
|
in relation to any Documentary Credit, the period from the date of its issue until its Expiry Date.
|
(a)
|
in relation to the Revolving Facility, the date which is 15 days prior to the Final Maturity Date in respect of the Revolving Facility (as applicable);
|
(b)
|
in relation to each Ancillary Facility, the relevant Ancillary Facility Termination Date; and
|
(c)
|
in relation to each Additional Facility, the Additional Facility Termination Date specified in the relevant Additional Facility Accession Deed.
|
(a)
|
as at the Signing Date, each of the Original Borrowers; and
|
(b)
|
thereafter, each of the Original Borrowers and any Acceding Borrower that is liable to corporation tax in the United Kingdom,
|
(a)
|
a Lender which is beneficially entitled to the income in respect of which that payment is made and is a UK Resident company (such that the payment is within the category of excepted payments described at section 933 ITA); or
|
(b)
|
a Lender to which such payment would fall within one of the categories of excepted payments described at sections 934 to 937 ITA inclusive,
|
(a)
|
in relation to an Advance, the date on which such Advance is (or is requested) to be made;
|
(b)
|
in relation to a utilisation by way of Ancillary Facility, the date on which such Ancillary Facility is established; and
|
(c)
|
in relation to a utilisation by way of Documentary Credit, the date on which such Documentary Credit is to be issued, in each case,
|
(a)
|
in relation to an Advance a duly completed notice substantially in the form set out in Part 1 to Schedule 4 (
Form of Utilisation Request (Advances)
); or
|
(b)
|
in relation to a Documentary Credit, a duly completed notice substantially in the form set out in Part 2 to Schedule 4 (
Form of Utilisation Request (Documentary Credits)
).
|
1.2
|
Accounting Expressions
|
1.3
|
Construction
|
(a)
|
any “Permitted Affiliate Parent”, any “Permitted Affiliate Holdco”, the “Parent”, the “Facility Agent”, the “Global Coordinator”, a “Mandated Lead Arranger”, a “Bookrunner”, the “Security Trustee”, a “Hedge Counterparty”, an “L/C Bank”, an “Ancillary Facility Lender” or a “Lender” shall be construed so as to include their respective and any subsequent successors, transferees and permitted assigns in accordance with their respective interests;
|
(b)
|
“
agreed form
” means, in relation to any document, in the form agreed by or on behalf of the Facility Agent and the Company prior to the Signing Date;
|
(c)
|
“
assets
” includes present and future properties, revenues and rights of every description;
|
(d)
|
“
company
” includes any body corporate;
|
(e)
|
“
determines
” or “
determined
” means, save as otherwise provided herein, a determination made in the absolute discretion of the person making the determination;
|
(f)
|
the “
equivalent
” on any given date in one currency (the “
first currency
”) of an amount denominated in another currency (the “
second currency
”) is a reference to the amount of the first currency which could be purchased with the second currency at the Facility Agent’s Spot Rate of Exchange at the Specified Time on the relevant date for the purchase of the first currency with the second currency or for the purposes of determining any amounts testing any covenant or determining whether an Event of Default has occurred under this Agreement:
|
(i)
|
in the case of any basket or threshold amount qualifying a covenant:
|
(A)
|
in order to determine how much of such basket or threshold has been used at any time, for each transaction entered into in reliance upon the utilisation of such basket or in reliance upon such threshold not being reached prior to such time, the date upon which such transaction was entered into; and
|
(B)
|
in order to determine the permissibility of a proposed transaction, on the date upon which the permissibility of that transaction is being tested for the purposes of determining compliance with that covenant; and
|
(ii)
|
in the case of any basket or threshold amount relating to an Event of Default, the date on which the relevant event is being assessed for the purposes of determining whether such Event of Default has occurred,
|
(g)
|
“
guarantee
” means (other than in Clause 28 (
Guarantee and Indemnity
)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;
|
(h)
|
“
month
” is a reference to a period starting on one day in a calendar month and ending on the numerically corresponding day in the next succeeding calendar month save that, where any such period would otherwise end on a day which is not a Business Day, it shall end on the next succeeding Business Day, unless that day falls in the calendar month succeeding that in which it would otherwise have ended, in which case it shall end on the immediately preceding Business Day provided that, if a period starts on the last Business Day in a calendar month or if there is no numerically corresponding day in the month in which that period ends, that period shall end on the last Business Day in that later month (provided that in any reference to “months” only the last month in a period shall be construed in the aforementioned manner);
|
(i)
|
a Lender’s “
participation
” in relation to a Documentary Credit, shall be construed as a reference to the relevant amount that is or may be payable by that Lender in relation to that Documentary Credit;
|
(j)
|
a “
person
” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership (whether or not having separate legal personality);
|
(k)
|
a “
regulation
” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation;
|
(l)
|
a “
repayment
” shall include a “
prepayment
” and references to “repay” or “prepay” shall be construed accordingly;
|
(m)
|
“
tax
” shall be construed so as to include all present and future taxes, charges, imposts, duties, levies, deductions or withholdings of any kind whatsoever, or any amount payable on account of or as security for any of the foregoing, by whomsoever on whomsoever and wherever imposed, levied, collected, withheld or assessed together with any penalties, additions, fines, surcharges or interest relating to it; and “
taxes
” and “
taxation
” shall be construed accordingly;
|
(n)
|
“
VAT
” shall be construed as value added tax as provided for in the Value Added Tax Act 1994 and legislation (or purported legislation and whether delegated or otherwise) supplemental to that Act or in any primary or secondary legislation promulgated by the European Community or European Union or any official body or agency of the European Community or European Union, and any tax similar or equivalent to value added tax imposed by any country other than the United Kingdom and any similar or turnover tax replacing or introduced in addition to any of the same;
|
(o)
|
“
wholly-owned Subsidiary
” of a company shall be construed as a reference to any company which has no other members except that other company and that other company’s wholly-owned Subsidiaries or nominees for that other company or its wholly-owned Subsidiaries save that the following shall not constitute “other members”:
|
(i)
|
directors’ qualifying shares or an immaterial amount of shares required to be owned by other persons pursuant to applicable law, regulation or to ensure limited liability; and
|
(ii)
|
in the case of an Asset Securitisation Subsidiary, shares held by a person that is not an Affiliate of the Company solely for the purpose of permitting such person (or such person’s designee) to vote with respect to customary major events with respect to such Asset Securitisation Subsidiary, including without limitation the institution of bankruptcy, insolvency or
|
(p)
|
the “
winding-up
”, “
dissolution
” or “
administration
” of a company shall be construed so as to include any equivalent or analogous proceedings under the Law of the jurisdiction in which such company is incorporated, established or organised or any jurisdiction in which such company carries on business, including the seeking of liquidation, winding up, reorganisation, dissolution, administration, arrangement, adjustment, protection from creditors or relief of debtors;
|
(q)
|
a Borrower providing “
cash cover
” for a Documentary Credit or an Ancillary Facility means that Borrower paying an amount in the currency of the Documentary Credit (or, as the case may be, Ancillary Facility) to an interest-bearing account in the name of that Borrower and the following conditions being met:
|
(i)
|
the account is with the Security Trustee or with the L/C Bank or Ancillary Facility Lender for which that cash cover is to be provided;
|
(ii)
|
subject to Clause 5.10(b) (
Cash Cover by Borrower
), until no amount is or may be outstanding under that Documentary Credit or Ancillary Facility, withdrawals from the account may only be made to pay a Relevant Finance Party amounts due and payable to it under this Agreement in respect of that Documentary Credit or Ancillary Facility; and
|
(iii)
|
that Borrower has executed a security document over that account, in form and substance satisfactory to the Security Trustee or the L/C Bank or Ancillary Facility Lender with which that account is held, creating a first ranking security interest over that account;
|
(r)
|
a Default (other than an Event of Default) is “
continuing
” if it has not been remedied or waived and an Event of Default is “continuing” if it has not been remedied or waived;
|
(s)
|
a Borrower “
repaying
” or “
prepaying
” a Documentary Credit or Ancillary Facility Outstandings means:
|
(i)
|
that Borrower providing cash cover for that Documentary Credit or in respect of the Ancillary Facility Outstandings;
|
(ii)
|
the maximum amount payable under the Documentary Credit or Ancillary Facility being reduced or cancelled in accordance with its terms; or
|
(iii)
|
the relevant L/C Bank or Ancillary Facility Lender being satisfied that it has no further liability under that Documentary Credit or Ancillary Facility, and the amount by which a Documentary Credit is, or Ancillary Facility Outstandings are, repaid or prepaid under paragraphs (i) and (ii) above is the amount of the relevant cash cover or reduction;
|
(t)
|
an amount “
borrowed
” includes any amount utilised by way of Documentary Credit or under an Ancillary Facility;
|
(u)
|
a Lender funding its participation in a Utilisation includes a Lender participating in a Documentary Credit; and
|
(v)
|
an “
outstanding amount
” of a Documentary Credit at any time is the maximum amount that is or may be payable by a Borrower in respect of that Documentary Credit at that time.
|
(w)
|
When determining the Sterling equivalent amount for the purposes of the “Instructing Group” and/or “Non-Consenting Lender” and for all other purposes other than under Clause 22 (
Financial Covenant
), the Facility Agent shall determine the amount of (i) any undrawn commitments denominated in euro or Dollars or any other Optional Currency on the basis of the Facility Agent’s Spot Rate of Exchange on the date of this Agreement (in the case of the Revolving Facility) or on the date of the relevant Additional Facility Accession Deed (in the case of an Additional Facility); and (ii) any participations in Utilisations denominated in euro or dollars or any other Optional Currency on the basis of the Facility Agent’s Spot Rate of Exchange on the date of receipt by the Facility Agent of the Utilisation Request for the relevant Advance.
|
1.4
|
Currency
|
1.5
|
Statutes
|
1.6
|
Time
|
1.7
|
References to Agreements
|
(a)
|
such agreement, indenture or any other document as amended, varied, novated or supplemented from time to time;
|
(b)
|
any other agreement, indenture or any other document whereby such agreement or document is so amended, varied, supplemented or novated; and
|
(c)
|
any other agreement, indenture or any other document entered into pursuant to or in accordance with any such agreement or document.
|
1.8
|
No Personal Liability
|
1.9
|
Group Intercreditor Agreement and HYD Intercreditor Agreement
|
(a)
|
This Agreement is entered into subject to, and with the benefit of, the terms of the Group Intercreditor Agreement and the HYD Intercreditor Agreement.
|
(b)
|
Notwithstanding anything to the contrary in this Agreement, the terms of the Group Intercreditor Agreement or the HYD Intercreditor Agreement will prevail if there is a conflict between the terms of this Agreement and the terms of the Group Intercreditor Agreement or the HYD Intercreditor Agreement.
|
1.10
|
Permitted Affiliate Group Designation Date
|
2.
|
THE FACILITIES
|
2.1
|
The Facilities
|
2.2
|
Increase
|
(a)
|
Notwithstanding Clause 2.1 (
The Facilities
) above, in addition to paragraph (b) below, the Company may with the prior consent of a Lender, any bank, financial institution, trust, fund or any other entity selected by the Company (each an “
Increase Lender
”) and by giving 10 Business Days prior notice to the Facility Agent, increase the Commitments under any Facility by including any new Commitments of any Increase Lender provided that:
|
(i)
|
no Event of Default is continuing;
|
(ii)
|
the terms of that Facility provide that no Utilisation may be made if, at the time of such Utilisation, an Event of Default is continuing or would result from such Utilisation;
|
(iii)
|
it shall be a condition to any Utilisation (other than in relation to a Rollover Advance) of any new Commitment that the Company shall certify in the relevant Utilisation Request that the ratio of Senior Net Debt to Annualised EBITDA shall be no greater than 4.50:1 (taking into account such drawing and the use of proceeds of such drawing and not taking into account the cash proceeds of such drawing); and
|
(iv)
|
each Borrower for that Facility is or becomes an Obligor.
|
(b)
|
The Company may by giving prior notice to the Facility Agent by no later than the date falling 30 Business Days after the effective date of a cancellation of:
|
(i)
|
the Available Commitments of a Defaulting Lender in accordance with Clause 10.5 (
Right of Cancellation in Relation to a Defaulting Lender
); or
|
(ii)
|
the Commitments of a Lender in accordance with Clause 19 (
Illegality
),
|
(c)
|
The increased Commitments will be assumed by one or more Increase Lenders selected by the Company each of which confirms its willingness to assume and
|
(d)
|
Each Increase Lender shall become a party to this Agreement as a “Lender” and any Increase Lender and each of the other Relevant Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Lender and those Relevant Finance Parties would have assumed and/or acquired had the Increase Lender been an Original Lender.
|
(e)
|
The Commitments of the other Lenders shall continue in full force and effect.
|
(f)
|
An increase in the Commitments shall take effect on the date specified by the Company in the notice referred to above or any later date on which the conditions set out in paragraph (g) below are satisfied.
|
(g)
|
An increase in the Commitments will only be effective on:
|
(i)
|
the execution by the Facility Agent of an Increase Confirmation from the relevant Increase Lender;
|
(ii)
|
in relation to an Increase Lender which is not a Lender immediately prior to the relevant increase:
|
(A)
|
the Increase Lender entering into the documentation required for it to accede as a party to the Group Intercreditor Agreement, HYD Intercreditor Agreement and Security Trust Agreement, as applicable; and
|
(B)
|
the performance by the Facility Agent of all necessary “know your client” or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Lender, the completion of which the Facility Agent shall promptly notify to the Company, the Increase Lender and each L/C Bank; and
|
(iii)
|
each participating Lender consenting to such increase.
|
(h)
|
The Company may pay to any Increase Lender a fee in the amount and at the times agreed between the Company and the Increase Lender.
|
(i)
|
Each Increase Lender, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the increase becomes effective.
|
(j)
|
The execution by the Company of an Increase Confirmation constitutes confirmation by each Guarantor that its obligations under Clause 28 (
Guarantee and Indemnity
) shall continue unaffected except that those obligations shall extend to the Total Commitments as increased by the addition of the new Commitments of any Increase Lender and shall be owed to each Finance Party including the relevant Lender.
|
(k)
|
Clause 36.6 (
Transfer Deed
) shall apply
mutatis mutandis
in this Clause 2.2 (
Increase
) in relation to an Increase Lender as if references in that Clause to:
|
(i)
|
a “
Transferor
” were references to all the Lenders immediately prior to the relevant increase;
|
(ii)
|
the “
New Lender
” were references to that “
Increase Lender
”; and
|
(iii)
|
a “
re-transfer
” and “
re-assignment
” were references to respectively a “
transfer
” and “
assignment
”.
|
2.3
|
Purpose
|
(a)
|
The Revolving Facility shall be applied for the purposes of financing the ongoing working capital requirements and the general corporate purposes of the Bank Group and may be utilised by way of Revolving Facility Advances, Documentary Credits or, subject to the provisions of Clause 6 (
Ancillary Facilities
), Ancillary Facilities.
|
(b)
|
The Borrowers shall apply all amounts borrowed under this Agreement in or towards satisfaction of the purposes referred to in paragraphs (a) and (b) above (as applicable) and none of the Relevant Finance Parties shall be obliged to concern themselves with such application.
|
2.4
|
Relevant Finance Parties’ Rights and Obligations
|
(a)
|
The obligations of each Relevant Finance Party under the Relevant Finance Documents are several. Failure by a Relevant Finance Party to perform its obligations under the Relevant Finance Documents does not affect the obligations of any other party under the Relevant Finance Documents. No Relevant Finance Party is responsible for the obligations of any other Relevant Finance Party under the Relevant Finance Documents.
|
(b)
|
The rights of each Relevant Finance Party under or in connection with the Relevant Finance Documents are separate and independent rights and any debt arising under the Relevant Finance Documents to a Relevant Finance Party from an Obligor shall be a separate and independent debt.
|
(c)
|
A Relevant Finance Party may, except as otherwise stated in the Relevant Finance Documents, separately enforce its rights under the Relevant Finance Documents.
|
2.5
|
Additional Facilities
|
(a)
|
The Company may notify the Facility Agent by no less than two Business Days notice that it wishes to establish one or more additional facilities (which may include any Ancillary Facility and/or Documentary Credit facility) (each an “
Additional Facility
”) by delivery to the Facility Agent of a duly completed Additional Facility Accession Deed, duly executed by the Company, each Additional Facility Lender for the Additional Facility and each Additional Facility Borrower for the relevant Additional Facility, provided, in respect of each Additional Facility, that:
|
(i)
|
in relation to a Certain Funds Acquisition, no Event of Default is continuing under Clause 26.2 (
Non-payment
) and Clauses 26.6 (
Insolvency
) to 26.10 (
Similar events
) and the Company certifies in the relevant Additional Facility Accession Deed that on the date of the Additional Facility Accession Deed the ratio of Senior Net Debt to Annualised EBITDA would be no greater than 4.50:1 if a drawing of the Commitments under such Additional Facility Accession Deed was made in full on that date (taking into account the proposed use of proceeds of such drawing and not taking into account the cash proceeds of such drawing);
|
(ii)
|
other than in relation to a Certain Funds Acquisition, no Event of Default is continuing;
|
(iii)
|
in relation to a Certain Funds Acquisition, the terms of that Additional Facility provide that no Utilisation may be made if, at the time of such Utilisation, an Event of Default is continuing or would result from such Utilisation under Clause 26.2 (
Non-payment
) and Clauses 26.6 (
Insolvency
) to 26.10 (
Similar events
);
|
(iv)
|
other than in relation to a Certain Funds Acquisition, the terms of that Additional Facility provide that no Utilisation may be made if, at the time of such Utilisation, an Event of Default is continuing or would result from such Utilisation;
|
(v)
|
it shall be a condition to any Utilisation (other than in relation to a Rollover Advance) of any new Additional Facility that the Company shall certify in the relevant Utilisation Request that the ratio of Senior Net Debt to Annualised EBITDA shall be no greater than 4.50:1 (taking into account such drawing and the use of proceeds of such drawing and not taking into account the cash proceeds of such drawing) provided that such condition shall not apply in relation to a Utilisation of an Additional Facility in relation to a Certain Funds Acquisition;
|
(vi)
|
each Additional Facility Borrower for that Additional Facility is an existing Obligor;
|
(vii)
|
the principal amount, interest rate, interest periods, Final Maturity Date, use of proceeds, repayment schedule, availability, fees, incorporation of relevant clauses relating to, or in connection with, any Additional Facility and related provisions and the currency of that Additional Facility shall be agreed by the relevant Additional Facility Borrowers and the relevant Additional Facility Lenders (and, in the case of currency and incorporation of the relevant clauses relating to, or in connection with, any Additional Facility which is a revolving facility, the Facility Agent) and set out in the relevant Additional Facility Accession Deed;
|
(viii)
|
the relevant Additional Facility Accession Deed shall specify whether that Additional Facility provides for one or more term loans or revolving loans; and
|
(ix)
|
subject to paragraph (iv) above, the general terms of that Additional Facility shall be consistent in all material respects with the terms of this Agreement.
|
(b)
|
Subject to the conditions in this Clause 2.5 being met, from the relevant Additional Facility Commencement Date for an Additional Facility, the Additional Facility Lenders for that Additional Facility shall make available the Additional Facility in a maximum aggregate amount not exceeding the aggregate Additional Facility Commitments in respect of that Additional Facility as set out in the relevant Additional Facility Accession Deed.
|
(c)
|
Each Additional Facility Lender shall become a party to this Agreement and be entitled to share in the Security in accordance with the terms of the Group Intercreditor Agreement and the Security Documents
pari passu
with the Lenders under the other Facilities provided that the Additional Facility Borrowers and the relevant Additional Facility Lender may agree that an Additional Facility shares in the Security on a junior basis to the other Facilities which, if so agreed, shall be set out in the relevant Additional Facility Accession Deed.
|
(d)
|
Each party to this Agreement (other than each proposed Additional Facility Lender and the Company) irrevocably authorises and instructs the Facility Agent to execute on its behalf any Additional Facility Accession Deed which has been duly completed and signed on behalf of each proposed Additional Facility Lender, the Company and each proposed Additional Facility Borrower, and the Parent and each Obligor agrees to be bound by such accession.
|
(e)
|
On the date that the Facility Agent executes an Additional Facility Accession Deed:
|
(i)
|
each Additional Facility Lender party to that Additional Facility Accession Deed, each other Relevant Finance Party, the Parent and the Obligors shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had each Additional Facility Lender been an Original Lender, with the rights and/or obligations assumed by it as a result of that accession and with the Commitment specified by it as its Additional Facility Commitment; and
|
(ii)
|
each Additional Facility Lender shall become a party to this Agreement as an “Additional Facility Lender”.
|
(f)
|
The execution by the Company of an Additional Facility Accession Deed constitutes confirmation by the Parent and each Guarantor that its obligations under Clause 28 (
Guarantee and Indemnity
) shall continue unaffected, except that those obligations shall extend to the Commitments as increased by the addition of each relevant Additional Facility Lender’s Commitment and shall be owed to each Relevant Finance Party including such Additional Facility Lender.
|
(g)
|
With the prior written consent of the Company, the Facility Agent is authorised and instructed to enter into such documentation as is reasonably required to amend this Agreement and any other Relevant Finance Document (in accordance with the terms of this Clause 2.5 (
Additional Facilities
)) to reflect the terms of each Additional Facility without the consent of any Lender other than the applicable Additional Facility Lender.
|
(h)
|
Each Additional Facility Lender, by executing an Additional Facility Accession Deed, confirms (for the avoidance of doubt) that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the Additional Facility becomes effective.
|
(i)
|
The Company may pay to any Additional Facility Lender a fee in the amount and at the times agreed between the Company and that Additional Facility Lender.
|
3.
|
CONDITIONS
|
3.1
|
Intentionally Left Blank
|
3.2
|
Further Conditions Precedent
|
3.3
|
Intentionally Left Blank
|
3.4
|
Deferred Acquisition Costs
|
(a)
|
where the Acquisition Cost of the acquisition was greater than £250,000,000 and no more than £300,000,000, a certificate signed by an authorised signatory of the Company and certifying; or
|
(b)
|
where the Acquisition Cost of the acquisition was greater than £300,000,000, financial projections which demonstrate,
|
4.
|
UTILISATION
|
4.1
|
Conditions to Utilisation
|
(a)
|
in the case of an Advance, the Facility Agent has received from such Borrower a duly completed Utilisation Request in the relevant form, and in the case of a Documentary Credit, both the Facility Agent and the relevant L/C Bank have received from a Borrower a duly completed Utilisation Request in the relevant form, in each case, no earlier than the day which is 10 Business Days prior to the requested Utilisation Date and, unless otherwise agreed with the Facility Agent (and, in relation to a Documentary Credit only, the L/C Bank) and no later than the Specified Time, receipt of which shall oblige such Borrower to utilise the amount requested on the Utilisation Date stated therein upon the terms and subject to the conditions contained in this Agreement;
|
(b)
|
the proposed Utilisation Date is a Business Day for the proposed currency of the Advance or Documentary Credit, as the case may be, which is within the Availability Period and is or precedes the relevant Termination Date;
|
(c)
|
in the case of a Utilisation by way of a Revolving Facility Advance, the proposed Sterling Amount (or its equivalent) of such Revolving Facility Advance (including any Deemed Advance) is (i) equal to the amount of the Available
|
(d)
|
in the case of a Utilisation by way of Documentary Credit, the proposed Sterling Amount (or its equivalent) of such Documentary Credit is equal to or more than £1,000,000 or such lesser amount as the relevant L/C Bank may agree (acting reasonably);
|
(e)
|
in the case of a Utilisation by way of a Revolving Facility Advance, immediately after the making of such Advance there will be no more than 25 Revolving Facility Advances then outstanding;
|
(f)
|
in the case of a Utilisation by way of a Documentary Credit, the proposed Term of the Documentary Credit ends on or before the Final Maturity Date in respect of the Revolving Facility or Additional Facility (as applicable) and immediately after the making of such Utilisation there will be no more than 25 Documentary Credits then outstanding;
|
(g)
|
in the case of a Utilisation by way of a Revolving Facility Advance, the proposed Term of such Advance is a period of any number of days from and including 1 day to and including 30 days or one, two, three or six months or such other period of up to 12 months as all the Lenders having a Revolving Facility Commitment may agree with the Company prior to submission of the relevant Utilisation Request, and ends on or before the Final Maturity Date in respect of the Revolving Facility;
|
(h)
|
in the case of a Utilisation by way of an Advance (other than a Rollover Advance), the interest rate applicable to such Advance’s first Interest Period or Term (as the case may be) will not have to be determined under Clause 15 (
Market Disruption and Alternative Interest Rates
);
|
(i)
|
in the case of a Utilisation by way of a Documentary Credit which is not substantially in the form set out in Schedule 15 (
Form of Documentary Credit
), the relevant L/C Bank shall have approved the terms of such Documentary Credit (acting reasonably);
|
(j)
|
in the case of any Utilisation, on the date of the Utilisation Request, the date of any Conversion Notice and the proposed Utilisation Date:
|
(i)
|
in the case of a Rollover Advance or a Documentary Credit which is being renewed pursuant to Clause 5.3 (
Renewal of Documentary Credits
), the Facility Agent shall not have received instructions from a Revolving Facility Instructing Group requiring the Facility Agent to refuse such
|
(ii)
|
in the case of any Utilisation other than that referred to in paragraph (i) above or in relation to any Utilisation under an Additional Facility in relation to a Certain Funds Acquisition, the Repeating Representations made by the persons identified as making those representations are true in all material respects by reference to the circumstances then existing and no Default is continuing or would result from the proposed Utilisation; and
|
(k)
|
in the case of a Utilisation under the Revolving Facility or under any Additional Facility that is a revolving facility (other than, (i) in each case, in relation to a Utilisation that is a Rollover Advance provided that the amount of the Maturing Advance is equal to or greater than the amount of that Rollover Advance or (ii) in relation to a Utilisation under any Additional Facility that is a revolving facility in relation to a Certain Funds Acquisition), there is no subsisting breach of Clause 22 (
Financial Covenant
).
|
4.2
|
Lenders’ Participations
|
(a)
|
Each Lender will participate through its Facility Office in each Advance made pursuant to Clause 4.1 (
Conditions to Utilisation
) in its respective Proportion.
|
(b)
|
The Facility Agent shall determine the Sterling Amount of each Revolving Facility Advance which is to be made in an Optional Currency and notify each Lender of the amount, currency and the Sterling Amount of each Advance, the amount of its participation in that Advance and, if different, the amount of that participation to be made available in accordance with Clause 32.1 (
Payment to the Facility Agent
) by the Specified Time.
|
5.
|
DOCUMENTARY CREDITS
|
5.1
|
Issue of Documentary Credits
|
(a)
|
Each L/C Bank shall issue Documentary Credits pursuant to Clause 4.1 (
Conditions to Utilisation
) by:
|
(i)
|
completing the issue date and the proposed Expiry Date of any Documentary Credit to be issued by it; and
|
(ii)
|
executing and delivering such Documentary Credit to the relevant Beneficiary on the relevant Utilisation Date.
|
(b)
|
Each Lender having a Revolving Facility Commitment or an Additional Facility Commitment in relation to a revolving facility (an “
L/C Lender
”) will participate by way of indemnity in each Documentary Credit issued under the relevant Facility in an amount equal to its L/C Proportion.
|
(c)
|
The Facility Agent shall notify each L/C Lender and the relevant L/C Bank of the details of any requested Documentary Credit (including the Sterling Amount of it, and, if such Documentary Credit is not to be denominated in Sterling, the relevant currency in which it will be denominated and the amount of it) and its participation in that Documentary Credit.
|
5.2
|
Existing Documentary Credits
|
(a)
|
On the first Utilisation Date, the Existing Documentary Credits shall be deemed to be Documentary Credits issued by the applicable L/C Lender listed in Part 2 of Schedule 12 (
Existing Documentary Credits
) pursuant to the relevant L/C Lender’s Ancillary Facility, which shall be deemed to be an ancillary facility provided to the applicable company listed as Borrower with the relevant L/C Lender’s consent in accordance with Clause 6.1 (
Utilisation of Ancillary Facilities
) on the same terms as the facility which the Existing Documentary Credit was issued under.
|
(b)
|
In respect of each Existing Documentary Credit, for the purposes of this Agreement:
|
(i)
|
the Utilisation Date shall be the first Utilisation Date; and
|
(ii)
|
the currency, amount and other terms shall be those set out opposite that Existing Documentary Credit in Part 2 of Schedule 12 (
Existing Documentary Credits
).
|
(c)
|
For the avoidance of doubt, no Request is required to be given by the Company in respect of the issue of the Documentary Credits in accordance with paragraph (a) above.
|
5.3
|
Renewal of Documentary Credits
|
(a)
|
Each Borrower may request that a Documentary Credit issued on its behalf be renewed by delivering to the Facility Agent and the relevant L/C Bank a Renewal Request which complies with Clause 4.1 (
Conditions to Utilisation
).
|
(b)
|
The terms of each renewed Documentary Credit shall be the same as those of the relevant Documentary Credit immediately prior to its renewal, except that (as stated in the Renewal Request therefor):
|
(i)
|
its amount may be less than the amount of such Documentary Credit immediately prior to its renewal; and
|
(ii)
|
its Term shall start on the date which was the Expiry Date of that Documentary Credit immediately prior to its renewal, and shall end on the proposed Expiry Date specified in the Renewal Request.
|
(c)
|
If the conditions set out in this Clause 5.3 (
Renewal of Documentary Credits
) have been met, the relevant L/C Bank shall amend and re-issue the relevant Documentary Credit pursuant to a Renewal Request.
|
5.4
|
Reduction of a Documentary Credit
|
(a)
|
If, on the proposed Utilisation Date of a Documentary Credit, any of the Lenders under the Revolving Facility is a Non-Acceptable L/C Lender and:
|
(i)
|
that Lender has failed to provide cash collateral to the relevant L/C Bank in accordance with Clause 5.9 (
Cash Collateral by Non-Acceptable L/C Lender
); and
|
(ii)
|
either:
|
(A)
|
the relevant L/C Bank has not required the relevant Borrower which requested the Documentary Credit to provide cash cover pursuant to Clause 5.10 (
Cash Cover by Borrower
); or
|
(B)
|
the relevant Borrower which requested the Documentary Credit has failed to provide cash cover to the relevant L/C Bank in accordance with Clause 5.10 (
Cash Cover by Borrower
),
|
(b)
|
The relevant Borrower shall notify the Facility Agent (with a copy to the relevant L/C Bank) of each reduction made pursuant to this Clause 5.4 (
Reduction of a Documentary Credit
).
|
(c)
|
This Clause 5.4 (
Reduction of a Documentary Credit
) shall not affect the participation of each other Lender in that Documentary Credit.
|
5.5
|
Revaluation of Documentary Credits
|
(a)
|
If any Documentary Credit is denominated in a currency other than Sterling, the Facility Agent shall at six monthly intervals after the date of the Documentary Credit recalculate the Sterling Amount of that Documentary Credit by notionally converting into Sterling, the outstanding amount of that Documentary Credit on the basis of the Facility Agent’s Spot Rate of Exchange on the date of calculation.
|
(b)
|
The relevant Borrower shall, if requested by the Facility Agent within two days of any calculation under paragraph (a) above, ensure that within three Business Days sufficient Revolving Facility Outstandings or Additional Facility Outstandings (as applicable) are repaid (subject to Break Costs, if applicable, but otherwise without penalty or premium which might otherwise be payable), to prevent the Sterling Amount of the Revolving Facility Outstandings or Additional Facility Outstandings (as applicable) exceeding the aggregate amount of all of the Revolving Facility Commitments or Additional Facility Commitments (as applicable) adjusted to reflect any cancellations or reductions, following any adjustment under paragraph (a) above.
|
5.6
|
Immediately Payable
|
(a)
|
If a Documentary Credit or any amount outstanding under a Documentary Credit becomes immediately payable under this Agreement, the relevant Borrower that requested (or on behalf of which the Company requested) the issue of that Documentary Credit shall repay or prepay that Documentary Credit or that amount within three Business Days of demand.
|
(b)
|
Each L/C Bank shall promptly notify the Facility Agent of any demand received by it under and in accordance with any Documentary Credit (including details of the Documentary Credit under which such demand has been received and the amount demanded). The Facility Agent shall promptly notify the Company, the relevant Borrower for whose account the Documentary Credit was issued and each of the Lenders under the Revolving Facility or Additional Facility (as applicable).
|
5.7
|
Claims Under a Documentary Credit
|
(a)
|
Each Borrower irrevocably and unconditionally authorises each L/C Bank to pay any claim made or purported to be made under a Documentary Credit requested by it (or by the Company on its behalf) and which appears on its face to be in order (a “
claim
”).
|
(b)
|
Each Borrower shall within three Business Days of demand pay to the Facility Agent for the account of the relevant L/C Bank an amount equal to the amount of any claim under that Documentary Credit.
|
(c)
|
On receipt of any demand or notification under Clause 5.6 (
Immediately Payable
), the relevant Borrower shall (unless the Company notifies the Facility Agent otherwise) be deemed to have delivered to the Facility Agent a duly completed Utilisation Request requesting a Revolving Facility Advance or Additional Facility Advance (as applicable):
|
(i)
|
in an amount and currency equal to the amount and currency of the relevant claim (if applicable, net of any available cash cover);
|
(ii)
|
for an Interest Period or Term of three months or such other period of up to six months as notified by the relevant Borrower to the relevant L/C Bank prior to the Utilisation Date applicable to such currency; and
|
(iii)
|
with a Utilisation Date on the date of receipt of the relevant demand or notification.
|
(d)
|
Each Borrower acknowledges that each L/C Bank:
|
(i)
|
is not obliged to carry out any investigation or seek any confirmation from any other person before paying a claim; and
|
(ii)
|
deals in documents only and will not be concerned with the legality of a claim or any underlying transaction or any available set-off, counterclaim or other defence of any person.
|
(e)
|
The obligations of each Borrower under this Clause 5.7 (
Claims Under a Documentary Credit
) will not be affected by:
|
(i)
|
the sufficiency, accuracy or genuineness of any claim or any other document; or
|
(ii)
|
any incapacity of, or limitation on the powers of, any person signing a claim or other document.
|
(f)
|
Without prejudice to any other matter contained in this Clause 5.7 (
Claims Under a Documentary Credit
), the relevant L/C Bank shall notify the relevant Borrowers as soon as reasonably practicable after receiving a claim.
|
5.8
|
Documentary Credit Indemnities
|
(a)
|
The relevant Borrower shall within three Business Days of demand indemnify an L/C Bank against any cost, loss or liability incurred by such L/C Bank (otherwise than by reason of such L/C Bank’s gross negligence, wilful misconduct or wilful breach of the terms of this Agreement) in acting as an L/C Bank under any Documentary Credit requested by such Borrower.
|
(b)
|
Each L/C Lender shall (according to its L/C Proportion) promptly on demand indemnify an L/C Bank against any cost, loss or liability incurred by such L/C Bank (otherwise than by reason of such L/C Bank’s gross negligence, wilful misconduct or wilful breach of the terms of this Agreement) in acting as an L/C Bank under any Documentary Credit (except to the extent that such L/C Bank has been reimbursed by an Obligor pursuant to a Relevant Finance Document).
|
(c)
|
If any L/C Lender is not permitted (by its constitutional documents or any applicable Law) to comply with paragraph (b) above, then that L/C Lender will not be obliged to comply with paragraph (b) above and shall instead be deemed to have taken, on the date the relevant Documentary Credit is issued (or if later, on the date that L/C Lender’s participation in the Documentary Credit is transferred or assigned to that L/C Lender in accordance with the terms of this Agreement), an undivided interest and participation in the Documentary Credit in an amount equal to its L/C Proportion of that Documentary Credit. On receipt of demand from the Facility Agent, that L/C Lender shall pay to the Facility Agent (for the account of the relevant L/C Bank) an amount equal to its L/C Proportion of the amount demanded under paragraph (b) above.
|
(d)
|
The Borrower which requested the Documentary Credit shall within three Business Days of demand reimburse any L/C Lender for any payment it makes to an L/C Bank under this Clause 5.8 (
Documentary Credit Indemnities
) in respect of that Documentary Credit unless such Lender or an Obligor has already reimbursed such L/C Bank in respect of that payment.
|
(e)
|
The obligations of each L/C Lender and Borrower under this Clause 5.8 (
Documentary Credit Indemnities
) are continuing obligations and will extend to the ultimate balance of sums payable by that L/C Lender in respect of any Documentary Credit, regardless of any intermediate payment or discharge in whole or in part.
|
(f)
|
The obligations of any L/C Lender or Borrower under this Clause 5.8 (
Documentary Credit Indemnities
)
will not be affected by any act, omission, matter or thing which, but for this Clause 5.8 (
Documentary Credit Indemnities
) would reduce, release or prejudice any of its obligations under this Clause 5.8 (
Documentary Credit Indemnities
) (without limitation and whether or not known to it or any other person) including:
|
(i)
|
any time, waiver or consent granted to, or composition with, any Obligor, any beneficiary under a Documentary Credit or any other person;
|
(ii)
|
the release of any Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;
|
(iii)
|
the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor, any beneficiary under a Documentary Credit or any other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;
|
(iv)
|
any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor, any beneficiary under a Documentary Credit or any other person;
|
(v)
|
any amendment or restatement (however fundamental) or replacement of a Relevant Finance Document, any Documentary Credit or any other document or security;
|
(vi)
|
any unenforceability, illegality or invalidity of any obligation of any person under any Relevant Finance Document, any Documentary Credit or any other document or security; or
|
(vii)
|
any insolvency or similar proceedings.
|
5.9
|
Cash Collateral by Non-Acceptable L/C Lender
|
(a)
|
If, at any time, a Lender under the Revolving Facility is a Non-Acceptable L/C Lender, the relevant L/C Bank may, by notice to that Lender, request that Lender to pay and that Lender shall pay, on or prior to the date falling three Business Days after the request by such L/C Bank, an amount equal to that Lender’s L/C Proportion of the outstanding amount of a Documentary Credit issued by such L/C Bank and in the currency of that Documentary Credit to an interest-bearing account held in the name of that Lender with such L/C Bank.
|
(b)
|
The Non-Acceptable L/C Lender to whom a request has been made in accordance with paragraph (a) above shall enter into a security document or other form of collateral arrangement over the account, in form and substance satisfactory to the relevant L/C Bank, as collateral for any amounts due and payable under the Relevant Finance Documents by that Lender to the L/C Bank in respect of that Documentary Credit.
|
(c)
|
Until no amount is or may be outstanding under that Documentary Credit, withdrawals from the account may only be made to pay to the relevant L/C Bank amounts due and payable to the relevant L/C Bank by the Non-Acceptable L/C Lender under the Relevant Finance Documents in respect of that Documentary Credit.
|
(d)
|
Each Lender under the Revolving Facility shall notify the Facility Agent and the Company:
|
(i)
|
on the date of this Agreement or on any later date on which it becomes such a Lender in accordance with Clause 2.2 (
Increase
) or Clause 36 (
Assignments and Transfers
) whether it is a Non-Acceptable L/C Lender; and
|
(ii)
|
as soon as practicable upon becoming aware of the same, that it has become a Non-Acceptable L/C Lender,
|
(e)
|
Any notice received by the Facility Agent pursuant to paragraph (d) above shall constitute notice to each L/C Bank of that Lender’s status and the Facility Agent shall, upon receiving each such notice, promptly notify each L/C Bank of that Lender’s status as specified in that notice.
|
(f)
|
If a Lender who has provided cash collateral in accordance with this Clause 5.9 (
Cash Collateral by Non-Acceptable L/C Lender
):
|
(i)
|
ceases to be a Non-Acceptable L/C Lender; and
|
(ii)
|
no amount is due and payable by that Lender in respect of a Documentary Credit,
|
5.10
|
Cash Cover by Borrower
|
(a)
|
If a Lender which is a Non-Acceptable L/C Lender fails to provide cash collateral (or notifies the relevant L/C Bank that it will not provide cash collateral) in accordance with Clause 5.9 (
Cash Collateral by Non-Acceptable L/C Lender
) and that L/C Bank notifies the Obligors’ Agent (with a copy to the Facility Agent) that it requires the relevant Borrower of the relevant Documentary Credit or proposed Documentary Credit to provide cash cover to an account with that L/C Bank in an amount equal to that Lender’s L/C Proportion of the outstanding amount of that Documentary Credit and in the currency of that Documentary Credit then that Borrower shall do so within five Business Days after the notice is given.
|
(b)
|
Notwithstanding Clause 1.3(s) (
Construction
), the relevant Borrower shall be entitled to withdraw amounts up to the level of that cash cover from the account if:
|
(i)
|
the relevant L/C Bank is satisfied that the relevant Lender is no longer a Non-Acceptable L/C Lender; or
|
(ii)
|
the relevant Lender’s obligations in respect of the relevant Documentary Credit are transferred to a New Lender in accordance with the terms of this Agreement; or
|
(iii)
|
an Increase Lender has agreed to undertake the obligations in respect of the relevant Lender’s L/C Proportion of the Documentary Credit.
|
(c)
|
To the extent that a Borrower has complied with its obligations to provide cash cover in accordance with this Clause 5.10 (
Cash Cover by Borrower
), the relevant Lender’s L/C Proportion in respect of that Documentary Credit will remain (but that Lender’s obligations in relation to that Documentary Credit may be satisfied in accordance Clause 1.3(s)(ii) (
Construction
)). However, the relevant Borrower’s obligation to pay any Documentary Credit fee in relation to the relevant Documentary Credit to the Facility Agent (for the account of that Lender) in accordance with Clause 16 (
Commissions and Fees
) will be reduced proportionately as from the date on which it complies with that obligation to provide cash cover (and for so long as the relevant amount of cash cover continues to stand as collateral).
|
(d)
|
The relevant L/C Bank shall promptly notify the Facility Agent of the extent to which the relevant Borrower provides cash cover pursuant to this Clause 5.10 (
Cash Cover by Borrower
) and of any change in the amount of cash cover so provided.
|
5.11
|
Rights of Contribution
|
5.12
|
Appointment and Change of L/C Bank
|
(a)
|
The Company, with the prior written consent of the relevant Lender, may designate any Lender with a Revolving Facility Commitment or an Additional Facility Commitment in respect of an Additional Facility that permits Documentary Credits as an L/C Bank or as a replacement therefor, but not with respect to Documentary Credits already issued by any other L/C Bank.
|
(b)
|
Any Lender so designated shall become an L/C Bank under this Agreement by delivering to the Facility Agent an executed L/C Bank Accession Certificate.
|
(c)
|
An L/C Bank may resign as issuer of further Documentary Credits at any time if (i) the Company and the Instructing Group consent to such resignation or so require; (ii) there is, in the reasonable opinion of each L/C Bank, an actual or potential conflict of interest in it continuing to act as L/C Bank; or (iii) its Revolving Facility Commitment or Additional Facility Commitment (as applicable) is reduced to zero, provided that an L/C Bank shall not resign until a replacement L/C Bank is appointed.
|
6.
|
ANCILLARY FACILITIES
|
6.1
|
Utilisation of Ancillary Facilities
|
(a)
|
Each Borrower may, subject to paragraph (b) below, at any time at least 35 days prior to the Termination Date in respect of the Revolving Facility or an Additional Facility (as applicable) by delivery of a notice (a “
Conversion Notice
”) to the Facility Agent, request an Ancillary Facility to be established by the conversion of any Lender’s Available Revolving Facility Commitment (or any part of it) or Available Additional Facility Commitment (or any part of it) into an Ancillary Facility Commitment with effect from the date (in this Clause 6 (
Ancillary Facilities
), the “
Effective Date
”) specified in the Conversion Notice (being a date not less than three Business Days after the date such Conversion Notice is received by the Facility Agent).
|
(b)
|
Each Conversion Notice shall specify:
|
(i)
|
the proposed Borrower(s) (or any Affiliate of the Borrower(s) that is a member of the Bank Group) which may use the Ancillary Facility;
|
(ii)
|
the nominated Ancillary Facility Lender;
|
(iii)
|
the type of Ancillary Facility and the currency or currencies in which the relevant Borrower wishes such Ancillary Facility to be available;
|
(iv)
|
the proposed Sterling Amount of the original Ancillary Facility Commitment, being an amount (A) equal to the Available Revolving Facility Commitment or Available Additional Facility Commitment of the nominated Ancillary Facility Lender or, if less, (B) equal to or more than £1,000,000;
|
(v)
|
the Effective Date and expiry date for the Ancillary Facility (such expiry date not to extend beyond the Final Maturity Date in respect of the Revolving Facility or an Additional Facility (as applicable));
|
(vi)
|
if the Ancillary Facility is an overdraft facility comprising more than one account, its maximum gross amount (that amount being the “
Designated Gross Amount
” and its maximum net amount (that amount being the “
Designated Net Amount
”)); and
|
(vii)
|
such other details as to the nature, amount, fees for and operation of the proposed Ancillary Facility as the Facility Agent and the nominated Ancillary Facility Lender may reasonably require.
|
(c)
|
The Facility Agent shall promptly notify the Company, the nominated Ancillary Facility Lender and the Lenders of each Conversion Notice received pursuant to paragraph (a) above.
|
(d)
|
Any Lender nominated as an Ancillary Facility Lender which has notified the Facility Agent of its consent to such nomination shall be authorised to make the proposed Ancillary Facility available in accordance with the Conversion Notice (as approved by the Facility Agent) with effect on and from the Effective Date. No other Lender shall be obliged to consent to the nomination of the Ancillary Facility Lender.
|
(e)
|
Any material variation from the terms of the Ancillary Facility or any proposed increase or reduction or extension of the Ancillary Facility Commitment shall be effected on and subject to the provisions of this Clause 6 (
Ancillary Facilities
)
mutatis mutandis
as if such Ancillary Facility were newly requested (including, for the avoidance of doubt, that such newly requested Ancillary Facility shall only take effect from a date not less than three Business Days after the date the Facility Agent has received notice of the modification or variation or extension), provided that the Sterling Amount of the Ancillary Facility Outstandings under each Ancillary Facility provided by an Ancillary Facility Lender shall at no time
|
(f)
|
Each relevant Borrower may (subject to compliance with the applicable terms of the relevant Ancillary Facility) at any time by giving written notice to the Facility Agent and the relevant Ancillary Facility Lender cancel any Ancillary Facility Commitment pursuant to and in accordance with Clause 10.1 (
Voluntary Cancellation
), provided that on the date of such cancellation, that part of such Ancillary Facility Commitment as shall have been so cancelled shall be converted back into the Revolving Facility Commitment or Additional Facility Commitment (as applicable) of the relevant Lender unless the Revolving Facility Commitments or Additional Facility Commitments (as applicable) are also cancelled on such date.
|
(g)
|
The Ancillary Facility Commitment of any Ancillary Facility Lender shall terminate and be cancelled on the date agreed therefor between the relevant Ancillary Facility Lender and the relevant Borrower, provided such date shall be no later than the Termination Date in respect of the Revolving Facility or Additional Facility (as applicable) (the “
Ancillary Facility Termination Date
”). Any Ancillary Facility Outstandings on the applicable Ancillary Facility Termination Date shall be repaid in full by the relevant Borrower on such date.
|
(h)
|
The Revolving Facility Commitment or Additional Facility Commitment (as applicable) of each Lender at any time shall be reduced by the amount of any Ancillary Facility Commitment of such Lender at such time but such reduced Commitment shall, subject to any other provisions of this Agreement, automatically be increased by the amount of any portion of its Ancillary Facility Commitment which ceases to be made available to the relevant Borrowers for any reason (other than as a result of Utilisation of it) in accordance with the terms of such Ancillary Facility or is cancelled pursuant to paragraphs (f) or (g) above.
|
6.2
|
Operation of Ancillary Facilities
|
(a)
|
Subject to paragraph (b) below, the terms governing the operation of any Ancillary Facility (including the rate of interest (including default interest), fees, commission and other remuneration in respect of such Ancillary Facility) shall be those determined by agreement between the Ancillary Facility Lender and the relevant Borrower, provided that such terms shall be based upon the normal commercial terms and market rates of the relevant Ancillary Facility Lender.
|
(b)
|
In the case of any inconsistency or conflict between the terms of any Ancillary Facility, the applicable Ancillary Facility Documents and this Agreement, the terms and provisions of the applicable Ancillary Facility Document shall prevail unless the contrary intention is expressly provided for in this Agreement.
|
(c)
|
Each relevant Borrower and Ancillary Facility Lender will promptly upon request by the Facility Agent, supply the Facility Agent with such information relating to the operation of each Ancillary Facility (including without limitation details of the Ancillary Facility Outstandings and the Sterling Amount thereof) as the Facility Agent may from time to time reasonably request (and each relevant Borrower consents to such documents and information being provided to the Facility Agent and the other Lenders).
|
6.3
|
Ancillary Facility Default
|
(a)
|
If a default occurs under any Ancillary Facility, no Ancillary Facility Lender may demand repayment of any monies or demand cash cover for any Ancillary Facility Outstandings, or take any analogous action in respect of any Ancillary Facility, until the Acceleration Date.
|
(b)
|
If an Acceleration Date occurs, the claims of each Lender with a Revolving Facility Commitment or Additional Facility Commitment (as applicable) and each Ancillary Facility Lender in respect of amounts outstanding to them under the Revolving Facility or Additional Facility (as applicable) and the related Ancillary Facilities respectively shall be adjusted in accordance with this Clause 6.3 (
Ancillary Facility Default
) by making all necessary transfers of such portions of such claims such that following such transfers the Revolving Facility Outstandings or Additional Facility Outstandings (as applicable) and the related Ancillary Facility Outstandings (together with the rights to receive interest, fees and charges in relation thereto) of (i) each Lender with a Revolving Facility Commitment or Additional Facility Commitment (as applicable) and (ii) each Ancillary Facility Lender, in each case as at the Acceleration Date shall be an amount corresponding
pro rata
to the proportion that the sum of such Lender’s Revolving Facility Commitment or Additional Facility Commitment (as applicable) and/or (as the case may be) related Ancillary Facility Commitment bears to the sum of all of the Revolving Facility Commitments or Additional Facility Commitments (as applicable) and the related Ancillary Facility Commitments, each as at the Acceleration Date.
|
(c)
|
No later than the third Business Day following the Acceleration Date each of the Ancillary Facility Lenders shall notify the Facility Agent in writing of the Sterling Amount of its Ancillary Facility Outstandings as at the close of business on the Acceleration Date, such amount to take account of any clearing of debits which were entered into the clearing system of such Ancillary Facility Lenders prior to the Acceleration Date and any amounts credited to the relevant accounts prior to close of business on the Acceleration Date.
|
(d)
|
On receipt of the information referred to in paragraph (c) above, the Facility Agent will promptly determine what adjustment payments (if any) are necessary as between the Lenders participating in the Revolving Facility or Additional Facility (as applicable) and each related Ancillary Facility Lender in order to ensure that, following such adjustment payments, the requirements of paragraph (b) above are complied with.
|
(e)
|
The Facility Agent will notify all the Lenders as soon as practicable of its determinations pursuant to paragraph (d) above, giving details of the adjustment payments required to be made. Such adjustment payments shall be payable by the relevant Lenders and shall be made to the Facility Agent within 5 Business Days following receipt of such notification from the Facility Agent. The Facility Agent shall distribute the adjustment payments received, among the Ancillary Facility Lenders and the Lenders participating in the Revolving Facility or Additional Facility (as applicable) in order to satisfy the requirements of paragraph (b) above.
|
(f)
|
If at any time following the Acceleration Date, the amount of Revolving Facility Outstandings or Additional Facility Outstandings (as applicable) of any Lender or related Ancillary Facility Outstandings of any Ancillary Facility Lender used in the Facility Agent’s calculation of the adjustments required under paragraph (d) above should vary for any reason (other than as a result of currency exchange fluctuation or other reason which affects all relevant Lenders equally), further adjustment payments shall be made on the same basis (
mutatis mutandis
) provided for in this Clause 6.3 (
Ancillary Facility Default
).
|
(g)
|
In respect of any amount paid by any Lender (a “
Paying Lender
”) pursuant to either of paragraphs (e) or (f) above, as between a relevant Borrower and the Paying Lender, the amount so paid shall be immediately due and payable by such relevant Borrower to the Paying Lender and the payment obligations of such relevant Borrower to the Lender(s) which received such payment shall be treated as correspondingly reduced by the amount of such payment.
|
(h)
|
Each Lender shall promptly supply to the Facility Agent such information as the Facility Agent may from time to time request for the purpose of giving effect to this Clause 6.3 (
Ancillary Facility Default
).
|
(i)
|
If an Ancillary Facility Lender has the benefit of any Security Interest securing any of its Ancillary Facilities, the realisations from such security when enforced will be treated as an amount recovered by such Ancillary Facility Lender in its capacity as a Lender which is subject to the sharing arrangements in Clause 34 (
Sharing among the Relevant Finance Parties
) to the intent that such realisation should benefit all Lenders
pro rata
.
|
6.4
|
Repayment of Ancillary Facilities
|
(a)
|
No Ancillary Facility Lender may demand repayment or prepayment of any amounts under its Ancillary Facility unless:
|
(i)
|
the Revolving Facility Commitments or Additional Facility Commitment (as applicable) have been cancelled in full, or the Facility Agent has declared all Outstandings under the Revolving Facility or Additional Facility (as applicable) immediately due and payable; or
|
(ii)
|
the Ancillary Facility Outstandings under that Ancillary Facility can be repaid by a Revolving Facility Advance or Additional Facility Advance (as applicable) (and not less than 7 Business Days notice (or such shorter period as agreed to by the Company) is given to the relevant Borrower before payment becomes due).
|
(b)
|
For the purposes of repaying Ancillary Facility Outstandings (so long as paragraph (a)(i) above does not apply) a Revolving Facility Advance or Additional Facility Advance (as applicable) may be borrowed irrespective of whether a Default is outstanding or any other applicable condition precedent not satisfied.
|
(c)
|
The share of the Ancillary Facility Lender in a Revolving Facility Advance or Additional Facility Advance (as applicable) being used to refinance that Ancillary Facility Lender’s Ancillary Facility will be that amount which will result (so far as possible) in:
|
(i)
|
the proportion which its share of all Outstandings under the Revolving Facility or Additional Facility (as applicable) bears to the aggregate amount of the Outstandings under the Revolving Facility or Additional Facility (as applicable),
|
(ii)
|
the proportion which its Available Commitment with respect to the Revolving Facility or Additional Facility (as applicable) bears to the aggregate of the Available Commitments with respect to the Revolving Facility or Additional Facility (as applicable),
|
6.5
|
Continuation of Ancillary Facilities
|
(a)
|
A Borrower and an Ancillary Facility Lender may, as between themselves only, agree to continue to provide the same banking facilities following the Termination Date applicable to the Revolving Facility or Additional Facility (as applicable) or, as the case may be, the Revolving Facility Commitments or Additional Facility Commitments (as applicable) are cancelled under this Agreement.
|
(b)
|
If any arrangement contemplated in paragraph (a) above is to occur, the relevant Borrower and the Ancillary Facility Lender shall each confirm that to be the case in writing to the Facility Agent. Upon such Termination Date or, as the case may be, date of cancellation, any such facility shall continue as between the said entities on a bilateral basis and not as part of, or under, the Relevant Finance Documents. Save for any rights and obligations against any Relevant Finance Party under the Relevant Finance Documents prior to such Termination Date or, as the case may be, date of cancellation, no such rights or obligations in respect of such Ancillary Facility shall, as between the Relevant Finance Parties, continue and the Security shall not support any such facility in respect of any matters that arise after such Termination Date or, as the case may be, date of cancellation.
|
6.6
|
Affiliates of Lenders as Ancillary Facility Lenders
|
(a)
|
Subject to the terms of this Agreement, an Affiliate of a Lender may become an Ancillary Facility Lender. In such case, the Lender and its Affiliate shall be treated as a single Lender whose (i) Revolving Facility Commitment is the amount set out opposite the relevant Lender’s name in Part 1 of Schedule 1 (
Lenders and Commitments
) and/or the amount of any Revolving Facility Commitment transferred to or assumed by that Lender under this Agreement, to the extent (in each case) not cancelled, reduced or transferred by it under this Agreement or (ii) Additional Facility Commitment is the amount set out opposite the relevant Lender’s name in the relevant Additional Facility Accession Deed and/or the amount of any relevant Additional Facility Commitment transferred to or assumed by that Lender under this Agreement, to the extent (in each case) not cancelled, reduced or transferred by it under this Agreement (as applicable). For the purposes of calculating the Lender’s Available Commitment with respect to the Revolving Facility or Additional Facility (as applicable), the Lender’s Commitment shall be reduced to the extent of the aggregate of the Ancillary Facility Commitments of its Affiliates.
|
(b)
|
The Company shall specify any relevant Affiliate of a Lender in any Conversion Notice delivered by the Company to the Facility Agent pursuant to Clause 6.1 (
Utilisation of Ancillary Facilities
).
|
(c)
|
An Affiliate of a Lender which becomes an Ancillary Facility Lender shall accede to this Agreement as an Ancillary Facility Lender, and the Group Intercreditor Agreement and the HYD Intercreditor Agreement as a Senior Lender.
|
(d)
|
If a Lender assigns all of its rights and benefits or transfers all of its rights and obligations to a New Lender (in accordance with Clause 36 (
Assignments and Transfers
), its Affiliate shall cease to have any obligations under this Agreement or any Ancillary Facility Document.
|
(e)
|
Where this Agreement or any other Relevant Finance Document imposes an obligation on an Ancillary Facility Lender and the relevant Ancillary Facility Lender is an Affiliate of a Lender which is not a party to that document, the relevant Lender shall ensure that the obligation is performed by its Affiliate.
|
6.7
|
Affiliates of Borrowers
|
(a)
|
Subject to the terms of this Agreement, an Affiliate of a Borrower that is a member of the Bank Group may with the approval of the relevant Ancillary Facility Lender become a Borrower with respect to an Ancillary Facility.
|
(b)
|
The Company shall specify any relevant Affiliate of the Borrower in any Conversion Notice delivered by the Company to the Facility Agent pursuant to Clause 6.1 (
Utilisation of Ancillary Facilities
).
|
(c)
|
If any Borrower ceases to be a Borrower under this Agreement in accordance with Clause 36.2 (
Resignation of a Borrower
), its Affiliate shall cease to have any rights under this Agreement or any Ancillary Facility Document.
|
(d)
|
Where this Agreement or any other Relevant Finance Document imposes an obligation on a Borrower under an Ancillary Facility and the relevant Borrower is an Affiliate of a Borrower which is not a party to that document, the relevant Borrower shall ensure that the obligation is performed by its Affiliate.
|
(e)
|
Any reference in this Agreement or any other Relevant Finance Document to a Borrower being under no obligations (whether actual or contingent) as a Borrower under such Relevant Finance Document shall be construed to include a reference to any Affiliate of a Borrower being under no obligations under any Relevant Finance Document or Ancillary Facility Document.
|
7.
|
OPTIONAL CURRENCIES
|
7.1
|
Selection of Currency
|
7.2
|
Unavailability of Optional Currency
|
(a)
|
If before the Specified Time on the Quotation Date for the relevant Revolving Facility Advance or an Additional Facility Advance:
|
(i)
|
a Lender notifies the Facility Agent that the relevant Optional Currency is not readily available to it in the amount required; or
|
(ii)
|
a Lender notifies the Facility Agent that compliance with its obligation to participate in the Revolving Facility Advance or Additional Facility Advance in the proposed Optional Currency would contravene a Law or regulation applicable to it,
|
(b)
|
Any part of a Revolving Facility Advance or Additional Facility Advance treated as a separate Advance under this Clause 7 (
Optional Currencies
) will not be taken into account for the purposes of any limit on the number of Advances or currencies outstanding at any one time.
|
8.
|
REPAYMENT OF REVOLVING FACILITY OUTSTANDINGS
|
8.1
|
Repayment of Revolving Facility Advances
|
8.2
|
Rollover Advances
|
(a)
|
if the amount of the Maturing Advance exceeds the aggregate amount of the Rollover Advance:
|
(i)
|
the relevant Borrower will only be required to pay an amount in cash in the relevant currency equal to that excess; and
|
(ii)
|
each Lender’s participation (if any) in the Rollover Advance shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation (if any) in the Maturing Advance and that Lender will not be required to make its participation in the Rollover Advance available in cash; and
|
(b)
|
if the amount of the Maturing Advance is equal to or less than the aggregate amount of the Rollover Advance:
|
(i)
|
the relevant Borrower will not be required to make any payment in cash; and
|
(ii)
|
each Lender will be required to make its participation in the Rollover Advance available in cash only to the extent that its participation (if any) in the Rollover Advance exceeds that Lender’s participation (if any) in the Maturing Advance and the remainder of that Lender’s participation in the Rollover Advance shall be treated as having been made available and applied by the Borrower in or towards repayment of that Lender’s participation in the Maturing Advance.
|
8.3
|
Cash Collateralisation of Documentary Credits
|
(a)
|
If not previously repaid in accordance with paragraph (b) below, each Borrower must repay each Documentary Credit issued on its behalf in full on the date stated in that Documentary Credit to be its Expiry Date.
|
(b)
|
A Borrower may give the Facility Agent not less than five Business Days prior written notice of its intention to repay all or any portion of a Documentary Credit requested by it prior to its stated Expiry Date and, having given such notice, shall
|
8.4
|
Final Repayment
|
9.
|
REPAYMENT OF TERM FACILITY OUTSTANDINGS
|
9.1
|
Repayment of Additional Facility Outstandings
|
10.
|
CANCELLATION
|
10.1
|
Voluntary Cancellation
|
10.2
|
Notice of Cancellation
|
10.3
|
Cancellation of Available Commitments
|
(a)
|
On each Termination Date any Available Commitments in respect of the Facility to which such Termination Date relates shall automatically be cancelled and the Commitment of each Lender in relation to such Facility shall automatically be reduced to zero.
|
(b)
|
No Available Commitments which have been cancelled under this Agreement may thereafter be reinstated.
|
10.4
|
Right of Repayment and Cancellation in Relation to a Single Lender
|
(a)
|
If:
|
(i)
|
any sum payable to any Lender, Ancillary Facility Lender or L/C Bank by an Obligor is required to be increased under Clause 17.1 (
Tax Gross-up
);
|
(ii)
|
any Lender, Ancillary Facility Lender or L/C Bank claims indemnification from the Company or a Borrower under Clause 17.3 (
Tax Indemnity
) or Clause 18 (
Increased Costs
); or
|
(iii)
|
any Lender, Ancillary Facility Lender or L/C Bank invokes Clause 15.3 (
Market disruption
),
|
(A)
|
if the circumstance relates to a Lender, the Company may:
|
(1)
|
arrange for the transfer or assignment in accordance with this Agreement of the whole (but at par only) of that Lender’s Commitment and participation in the Utilisations to a new or existing Lender willing to accept that transfer or assignment; or
|
(2)
|
give the Facility Agent notice of cancellation of that Lender’s Commitment and the Company’s intention to procure the repayment of that Lender’s participation in the Utilisation, whereupon the Commitment of that Lender shall immediately be reduced to zero;
|
(B)
|
if the circumstance relates to an Ancillary Facility Lender, the Company may give the Facility Agent notice of cancellation of that Ancillary Facility Lender’s Ancillary Facility Commitment and the Company’s intention to procure the repayment of the utilisations of any Ancillary Facility granted by that Ancillary Facility Lender, whereupon the Ancillary Facility Commitment of that Ancillary Facility Lender shall immediately be reduced to zero; and
|
(C)
|
if the circumstance relates to an L/C Bank, the Company may give the Facility Agent notice of repayment of any outstanding
|
(b)
|
On the last day of each Interest Period or Term which ends after the Company has given notice under paragraph (a)(iii)(A)(2), (a)(iii)(B) or (a)(iii)(C) above (or, if earlier, the date specified by the Company in that notice), each Borrower to which a Utilisation or utilisation of an Ancillary Facility is outstanding shall repay that Lender’s participation in that Utilisation or the utilisation of the Ancillary Facility granted by that Ancillary Facility Lender (together with all interest and other amounts accrued under the Relevant Finance Documents) or, as the case may be, provide full cash cover in respect of any Documentary Credit issued by that L/C Bank or any contingent liability under an Ancillary Facility.
|
(c)
|
The Company may only exercise its rights under paragraph (a) above if:
|
(i)
|
in the case of paragraphs (a)(i) and (a)(ii) above, the circumstance giving rise to the requirement or indemnification continues or, in the case of (a)(iii) no more than 90 days have elapsed since the relevant invoking of Clause 15.3 (
Market disruption
); and
|
(ii)
|
it gives the Facility Agent and the relevant Lender not less than five Business Days prior notice.
|
(c)
|
The replacement of a Lender pursuant to paragraph (a)(iii)(A)(1) above shall be subject to the following conditions:
|
(i)
|
no Relevant Finance Party shall have any obligation to find a replacement Lender;
|
(ii)
|
any replaced Lender shall not be required to refund, or to pay or surrender to any other Lender, any of the fees or other amounts received by that replaced Lender under any Relevant Finance Document; and
|
(iii)
|
any replacement of a Lender which is the Facility Agent shall not affect its role as the Facility Agent.
|
10.5
|
Right of Cancellation in Relation to a Defaulting Lender
|
(a)
|
If any Lender becomes a Defaulting Lender, the Company may, at any time whilst the Lender continues to be a Defaulting Lender, give the Facility Agent three Business Days notice of cancellation of each Available Commitment of that Lender.
|
(b)
|
On the notice referred to in paragraph (a) above becoming effective, each Available Commitment of the Defaulting Lender shall immediately be reduced to zero.
|
(c)
|
The Facility Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above, notify all the Lenders.
|
11.
|
VOLUNTARY PREPAYMENT
|
11.1
|
Voluntary Prepayment
|
(a)
|
Any Additional Facility Borrower may, by giving to the Facility Agent not less than three Business Days prior written notice to that effect (or such shorter period which is agreed between the Company and the Facility Agent), repay any Additional Facility Advance by such minimum amount as is agreed by the Company and the relevant Additional Facility Lender.
|
(b)
|
Any Borrower may, by giving to the Facility Agent not less than three Business Days prior written notice to that effect or such shorter period which is agreed between the Company and the Facility Agent repay a Revolving Facility Advance drawn by it in whole or in part (but if in part, in an amount that reduces the Sterling Amount of the Revolving Facility Advance by a minimum amount of £1,000,000 and an integral multiple of £500,000 together with accrued interest on the amount repaid without premium or penalty but subject to the payment of any Break Costs (if applicable).
|
11.2
|
Application of Repayments
|
11.3
|
Release from Obligation to Make Advances
|
11.4
|
Notice of Prepayment or Cancellation
|
11.5
|
Restrictions on Repayment
|
11.6
|
Cancellation upon Repayment
|
12.
|
MANDATORY PREPAYMENT AND CANCELLATION
|
12.1
|
Change of Control
“
Change of Control
” means:
|
(i)
|
the Controlling Company (A) ceases to be the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent; and (B) ceases, by virtue of any powers conferred by the articles of association or other documents regulating the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent, as applicable, to, directly or indirectly, direct or cause the direction of management and policies of the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent, as applicable;
|
(ii)
|
the sale, lease, transfer, conveyance or other disposition (other than by way of a merger or consolidation) in one or a series of related transactions, of all or substantially all of the assets of the Company, a Permitted Affiliate Parent (after any Permitted Affiliate Group Designation Date) and the Restricted Subsidiaries (taken as a whole) to any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) other than a Permitted Holder (other than as a result of the transfer of receivables to any Asset Securitisation Subsidiary in connection with any asset securitisation programme or programmes and/or one or more receivables factoring transactions);
|
(iii)
|
at any time after a Permitted Affiliate Group Designation Date, any Permitted Affiliate Holdco ceases to be the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act) directly or indirectly of 100 per cent. of the total voting power of the Voting Stock of any Permitted Affiliate Parent; or
|
(b)
|
Notwithstanding the foregoing, upon consummation of the Post-Closing Reorganisation or a Spin-Off, “the Controlling Company” in paragraph (i) above will be replaced with New Intermediate Holdco, in respect of the Post-Closing Reorganisation, and the Spin Parent, in respect of a Spin-Off. For the purpose of this Clause 12 (
Mandatory Prepayment and Cancellation
) only:
|
(i)
|
“
Capital Stock
” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of interests in (howsoever designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.
|
(ii)
|
“
Controlling Company
” means:
|
(A)
|
at any prior to a Permitted Affiliate Group Designation Date, Virgin Media Communications and its successors;
|
(B)
|
at any time on or after a Permitted Affiliate Group Designation Date, the Common Holding Company and its successors;
|
(iii)
|
“
Exchange Act
” means the United States Securities Exchange Act of 1934, as amended.
|
(iv)
|
“
New Intermediate Holdco
” means the direct Subsidiary of the Ultimate Parent following the Post Closing Reorganisation.
|
(v)
|
“
Permitted Holder
” means, collectively:
|
(A)
|
the Ultimate Parent;
|
(B)
|
in the event of a Spin-Off, the Spin Parent and any Subsidiary of the Spin Parent; and
|
(C)
|
each Affiliate or Related Person of a Permitted Holder described in (A) above, and any successor to such Permitted Holder, Affiliate or Related Person;
|
(D)
|
any Person who is acting as an underwriter in connection with any public or private offering of Capital Stock of the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent, acting in such capacity; and
|
(E)
|
any “person” or “group” of related persons (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) whose acquisition of “beneficial ownership” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) of Voting Stock or all or substantially all of the assets of the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent and its Restricted Subsidiaries (taken as a whole) would constitute a Change of Control in respect of which the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent, as applicable has provided a notice to the Facility Agent under Clause 12.1(c)(i) (
Change of Control
) and the Facility Agent has not, within 60 Business Days of receipt of such notice, provided a notice to the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent, as applicable, under Clause 12.1(c)(ii) (
Change of Control
)
|
(vi)
|
“
Person
” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organisation, limited liability company, government or any agency of political subdivision hereof or any other entity.
|
(vii)
|
“
Post Closing Reorganisation
” means (A) a distribution or other transfer of Virgin Media Communications and its Subsidiaries or a Holding Company of Virgin Media Communications and its Subsidiaries to the Ultimate Parent or another direct Subsidiary of the Ultimate Parent through one or more mergers, transfers, consolidations or other similar transactions such that Virgin Media Communications or such Holding Company will become the direct Subsidiary of the Ultimate Parent or such other direct Subsidiary of the Ultimate Parent; (B) the insertion of a new entity as a direct Subsidiary of Virgin Media Communications, which new entity will become a Holding Company of the Virgin Media Finance plc; and/or (C) the issuance by Virgin Media Communications or the Virgin Media Finance plc of Capital Stock to the Ultimate Parent or another direct Subsidiary of the Ultimate Parent and, as consideration therefor, the assignment by the Ultimate Parent or a direct Subsidiary of the Ultimate Parent of a loan receivable to Virgin Media Communications or Virgin Media Finance plc, as the case may be.
|
(viii)
|
“
Preferred Stock
”, as applied to the Capital Stock of any corporation, means Capital Stock of any class or classes (however designated) which is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation, over shares of Capital Stock of any other class of such corporation.
|
(ix)
|
“
Related Person
” with respect to any Permitted Holder, means:
|
(A)
|
any controlling equity holder or majority (or more) owned Subsidiary of such Permitted Holder; or
|
(B)
|
in the case of an individual, any spouse, family member or relative of such individual, any trust or partnership for the benefit of one or more of such individual and any such spouse, family member or relative, or the estate, executor, administrator, committee or beneficiaries of any thereof; or
|
(C)
|
any trust, corporation, partnership or other person for which one or more of the Permitted Holders and other Related Persons of any thereof constitute the beneficiaries, stockholders, partners or owners thereof, or Persons beneficially holding in the aggregate a majority (or more) controlling interest therein.
|
(x)
|
“
Spin-Off
” means a transaction by which all outstanding ordinary shares of Virgin Media Communications or any of its Holding Companies directly or indirectly owned by the Ultimate Parent and, after any Permitted Affiliate Group Designation Date, a Holding Company of the Company and the Permitted Affiliate Parent are distributed to all of the Ultimate Parent’s shareholders in proportion to such shareholders’ holdings in the Ultimate Parent at the time of such transaction either directly or indirectly through the distribution of shares in a company holding Virgin Media Communications’ shares or such Holding Company’s shares.
|
(xi)
|
“
Spin Parent
” means the company the shares of which are distributed to the shareholders of the Ultimate Parent pursuant to the Spin-Off.
|
(xii)
|
“
Virgin Media Communications
” means Virgin Media Communications Limited (a company registered in England and Wales with registered number 03521915), together with its successors (by merger, consolidation, transfer, conversion of legal form or otherwise).
|
(xiii)
|
“
Voting Stock
” of a Person means all classes of Capital Stock of such Person then outstanding and normally entitled to vote in the election of directors.
|
(c)
|
Upon becoming aware of a Change of Control:
|
(i)
|
the Company or, after a Permitted Affiliate Group Designation Date, a Permitted Affiliate Parent, as applicable, shall promptly notify the Facility Agent; and
|
(ii)
|
if the Instructing Group so require, the Facility Agent shall, by not less than 30 Business Days’ notice to the Company, cancel each Facility and declare all outstanding Advances, together with accrued interest and all other relevant amounts accrued under the Relevant Finance Documents immediately due and payable, whereupon each Facility will be cancelled and all such outstanding amounts will become immediately due and payable.
|
12.2
|
Mandatory prepayment from disposal proceeds
|
(a)
|
Other than as provided in paragraphs (b) and (c) below, on a Permitted Disposal (other than (i) an amount equal to the greater of the first £200,000,000 of Net Proceeds and two per cent. of Total Assets of each Content Transaction or (ii) a disposal in accordance with Clause 23.11(b)(i) to (xxxiv) (
Disposals
)), the Company shall procure that an amount of the Facilities is prepaid which is the lesser of:
|
(i)
|
the amount of the Net Proceeds of such a disposal; and
|
(ii)
|
an amount so as to ensure that the financial ratio set out in Clause 22.2 (
Financial Ratio
) for the most recent Ratio Period ending prior to the receipt of such Net Proceeds would not be breached if such financial ratio was tested for that most recent Ratio Period taking into account (on a
pro-forma
basis) the amount of such prepayment (but ignoring such Net Proceeds),
|
(b)
|
No prepayment in accordance with paragraph (a) above is required:
|
(i)
|
where the amount of any such prepayment would be less than the greater of £200,000,000 and two per cent. of Total Assets; or
|
(ii)
|
in connection with any Permitted Disposal where an amount equal to the amount of such prepayment is reinvested in assets in the Business (for the avoidance of doubt, including Permitted Acquisitions, Capital Expenditure, Operational Expenditure and Permitted Joint Ventures). Any amount that has not been:
|
(A)
|
contracted to be so reinvested within 12 months of the relevant Permitted Disposal; and
|
(B)
|
so reinvested within 18 months of the relevant Permitted Disposal (“
Reinvestment End Date
”),
|
(1)
|
the amount of the Net Proceeds of such a disposal; and
|
(2)
|
an amount so as to ensure that the financial ratio set out in Clause 22.2 (
Financial Ratio
) for the most recent Ratio Period ending prior to the Reinvestment End Date would not be breached if such financial ratio was tested for that most recent Ratio Period taking into account (on a
pro-forma
basis) the amount of such prepayment (but ignoring such Net Proceeds),
|
(c)
|
The Facility Agent may, with the approval of the Instructing Group, waive the requirement for the Borrowers to make a prepayment in accordance with paragraph (a). Notwithstanding any such waiver, the Borrowers shall in any event be required to prepay an amount of the Facilities to ensure that the financial ratio set out in Clause 22.2 (
Financial ratio
) for the Latest Ratio Period (as defined in Clause 23.11) (
Disposals
)) in respect of the relevant disposal would not be breached if such financial ratio were tested for that Latest Ratio Period taking into account all disposals made since the last day of that Latest Ratio Period and the amount of such prepayment.
|
12.3
|
Application of mandatory prepayments and cancellations
|
(a)
|
A prepayment of Utilisations or cancellation of Available Commitments made under Clause 12.2 (
Mandatory prepayment from disposal proceeds
) shall be applied in the following order:
|
(i)
|
first, in prepayment of Advances made under the Term Facilities as contemplated in paragraphs (b) to (e) inclusive below;
|
(ii)
|
secondly, in prepayment of, at the election of the Company, Revolving Facility Outstandings and/or outstanding Additional Facility Advances in relation to an Additional Facility that is a revolving facility such that:
|
(A)
|
they are prepaid on a
pro rata
basis; and
|
(B)
|
Revolving Facility Advances and applicable Additional Facility Advances shall be prepaid before any Outstanding L/C Amounts (which shall then be prepaid on a
pro rata
basis)),
|
(iii)
|
then, in:
|
(A)
|
repayment of the Ancillary Facility Outstandings (and cancellation of corresponding Ancillary Facility Commitments); and
|
(B)
|
cancellation of Ancillary Facility Commitments; and
|
(iv)
|
finally, (on a
pro rata
basis) cancellation of the Revolving Facility Commitments and the Additional Facility Commitments in relation to any Additional Facility that is a revolving facility.
|
(b)
|
Unless the relevant Borrower makes an election under paragraph (d) below or notifies the Facility Agent that it intends to reinvest the Net Proceeds in assets in the Business of the Bank Group in accordance with Clause 12.2 (
Mandatory prepayment from disposal proceeds
) above,, it shall prepay Advances promptly upon receipt of the Net Proceeds of the Acquisition.
|
(c)
|
A prepayment under Clause 12.2 (
Mandatory prepayment from disposal proceeds
) shall prepay the Advances made under the Term Facilities at the discretion of the relevant Borrower.
|
(d)
|
Subject to paragraph (e) below, a Borrower may elect that any prepayment under Clause 12.2 (
Mandatory prepayment from disposal proceeds
) be applied in prepayment of an Advance on the last day of the Interest Period or Term relating to that Advance. If the relevant Borrower makes that election then a proportion of the Advance equal to the amount of the relevant prepayment will be due and payable on the last day of its Interest Period or Term.
|
(e)
|
If a Borrower has made an election under paragraph (d) above but a Default has occurred and is continuing, that election shall no longer apply and a proportion of the Advance in respect of which the election was made equal to the amount of the relevant prepayment shall be immediately due and payable (unless the Instructing Group otherwise agree in writing).
|
12.4
|
Right of prepayment and cancellation in relation to a single Lender
|
(a)
|
If:
|
(i)
|
any sum payable to any Lender by a Borrower is required to be increased under Clause 17.1 (
Tax Gross-up
); or
|
(ii)
|
any Lender claims indemnification from a Borrower under Clause 17.3 (
Tax Indemnity
) and Clause 18.1 (
Increased Costs
),
|
(b)
|
On receipt of a notice referred to in paragraph (a) above, the relevant Facility Commitment of that Lender shall each immediately be reduced to zero.
|
(c)
|
On the last day of each Interest Period which ends after the relevant Borrower has given notice under paragraph (a) above (or, if earlier, the date specified by that Borrower in that notice), the relevant Borrower shall repay that Lender’s participation in all relevant Advances.
|
(d)
|
Prepayments made pursuant to this Clause 12.4 (
Right of prepayment and cancellation in relation to a single Lender
) shall be applied against the outstanding Advances
pro rata
.
|
12.5
|
Miscellaneous provisions
|
(a)
|
All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and any other amounts due under this Agreement in respect of that prepayment and, subject to Clause 30.2 (
Break Costs
), without premium or penalty.
|
(b)
|
No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement.
|
(c)
|
Any prepayment in part of any Advance shall be applied against the participations of the Lenders in that Advance
pro rata
.
|
(d)
|
Any Lender may waive its right to be prepaid any amount under this Clause 12 (
Mandatory Prepayment and Cancellation
) and such amount may, subject to the terms of any other Relevant Finance Document, be retained or applied in any manner by the Company in its sole discretion.
|
13.
|
INTEREST ON REVOLVING FACILITY ADVANCES
|
13.1
|
Interest Payment Date for Revolving Facility Advances
|
13.2
|
Interest Rate for Revolving Facility Advances
|
14.
|
INTEREST ON TERM FACILITY ADVANCES
|
14.1
|
Interest Periods for Term Facility Advances
|
14.2
|
Duration
|
(a)
|
if such Borrower fails to give such notice of selection in relation to an Interest Period, the duration of that Interest Period shall, subject to the other provisions of this Clause 14 (
Interest on Term Facility Advances
), be three months; and
|
(b)
|
any Interest Period that would otherwise end during the month preceding or extend beyond a Repayment Date relating to the Term Facility Outstandings shall be of such duration that it shall end on that Repayment Date if necessary to ensure that there are Advances under the relevant Term Facility with Interest Periods ending on the relevant Repayment Date in a sufficient aggregate amount to make the repayment due on that Repayment Date.
|
14.3
|
Consolidation and Division of Term Facility Advances
|
(a)
|
Subject to paragraph (b) below, if two or more Interest Periods:
|
(i)
|
relate to Term Facility Advances under the same Term Facility made to the same Borrower in the same currency; and
|
(ii)
|
end on the same date,
|
(b)
|
Subject to the requirements of Clause 14.2 (
Duration
), a Borrower (or the Company on its behalf) may, by no later than 9:30am on the date falling three Business Days before the first day of the relevant Interest Period, direct that any Term Facility Advance borrowed by it shall, at the beginning of the next Interest Period relating to it, be divided into (and thereafter, save as otherwise provided in this Agreement, be treated in all respects as) two or more Advances in such amounts (equal in aggregate to the Sterling Amount of the Term Facility Advance being so divided) as shall be specified by that Borrower or the Company in such notice provided that no such direction may be made if:
|
(i)
|
as a result of so doing, there would be more than 10 Advances outstanding under the relevant Term Facility; or
|
(ii)
|
any Term Facility Advance thereby coming into existence would have a Sterling Amount of less than £25,000,000.
|
14.4
|
Payment of Interest for Term Facility Advances
|
14.5
|
Interest Rate for Term Facility Advances
|
14.6
|
Interest on Additional Facilities
|
14.7
|
Notification
|
15.
|
MARKET DISRUPTION AND ALTERNATIVE INTEREST RATES
|
15.1
|
Unavailability of Screen Rate
|
(a)
|
Interpolated Screen Rate
: If no Screen Rate is available for LIBOR or, if applicable, EURIBOR for the Interest Period or Term of an Advance, the applicable LIBOR or EURIBOR shall be the Interpolated Screen Rate for a period equal in length to the Interest Period of that Advance.
|
(b)
|
Shortened Interest Period
: If no Screen Rate is available for LIBOR or, if applicable, EURIBOR for:
|
(i)
|
the currency of an Advance; or
|
(ii)
|
the Interest Period or Term of an Advance and it is not possible to calculate the Interpolated Screen Rate,
|
(c)
|
Shortened Interest Period and Historic Screen Rate
: If the Interest Period of an Advance is, after giving effect to paragraph (b) above, either the applicable Fallback Interest Period or shorter than the applicable Fallback Interest Period and, in either case, no Screen Rate is available for LIBOR or, if applicable EURIBOR for:
|
(i)
|
the currency of that Advance; or
|
(ii)
|
the Interest Period or Term of that Advance and it is not possible to calculate the Interpolated Screen Rate,
|
(d)
|
Shortened Interest Period and Interpolated Historic Screen Rate
: If paragraph (c) above applies but no Historic Screen Rate is available for the Interest Period or Term of that Advance, the applicable LIBOR or EURIBOR shall be the Interpolated Historic Screen Rate for a period equal in length to the Interest Period or Term of that Advance.
|
(e)
|
Reference Bank Rate
: If paragraph (d) above applies but it is not possible to calculate the Interpolated Historic Screen Rate, the Interest Period or Term of that Advance shall, if it has been shortened pursuant to paragraph (b) above, revert to its previous length and the applicable LIBOR or EURIBOR shall be the Reference Bank Rate as of the Specified Time for the currency of that Advance and for a period equal in length to the Interest Period or Term of that Advance.
|
(f)
|
Alternative Reference Bank Rate
: If paragraph (e) above applies but no Reference Bank Rate is available for the relevant currency or Interest Period or Term the applicable LIBOR or EURIBOR shall be the Alternative Reference Bank Rate as of the Specified Time for the currency of that Advance and for a period equal in length to the Interest Period or Term of that Advance.
|
(g)
|
Cost of funds
: If paragraph (f) above applies but no Alternative Reference Bank Rate is available for the relevant currency or Interest Period or Term there shall be no LIBOR or EURIBOR for that Advance and Clause 15.4 (
Cost of funds
) shall apply to that Advance for that Interest Period or Term.
|
15.2
|
Calculation of Reference Bank Rate and Alternative Reference Bank Rate
|
(a)
|
Subject to paragraph (b) below, if LIBOR or EURIBOR is to be determined on the basis of a Reference Bank Rate but a Reference Bank does not supply a quotation by the Specified Time the Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Reference Banks.
|
(b)
|
If at or about noon on the Quotation Date none or only one of the Reference Banks supplies a quotation, there shall be no Reference Bank Rate for the relevant Interest Period or Term.
|
(c)
|
Subject to paragraph (d) below, if LIBOR or EURIBOR is to be determined on the basis of an Alternative Reference Bank Rate but an Alternative Reference Bank does not supply a quotation by the Specified Time, the Alternative Reference Bank Rate shall be calculated on the basis of the quotations of the remaining Alternative Reference Banks.
|
(d)
|
If before close of business in London on the date falling one Business Day after the Quotation Date none or only one of the Alternative Reference Banks supplies
|
15.3
|
Market disruption
|
(a)
|
If LIBOR or, if applicable, EURIBOR is determined otherwise than on the basis of an Alternative Reference Bank Rate and before close of business in London on the Quotation Date for the relevant Interest Period or Term, the Facility Agent receives notifications from a Lender or Lenders (whose participations in an Advance exceed 40 per cent. of that Advance) that the cost to it of funding its participation in that Advance from whatever source it may reasonably select would be in excess of LIBOR or, if applicable, EURIBOR then the applicable LIBOR or EURIBOR shall be the Alternative Reference Bank Rate as of the Specified Time for the currency of the Advance and for a period equal in length to the Interest Period or Term of that Advance and if no Alternative Reference Bank Rate is available for the relevant currency or Interest Period or Term there shall be no LIBOR or EURIBOR for that Advance and Clause 15.4 (
Cost of funds
) shall apply to that Advance for the relevant Interest Period or Term.
|
(b)
|
If LIBOR or, if applicable, EURIBOR is determined on the basis of an Alternative Reference Bank Rate and before close of business in London on the date falling one Business Day after the Quotation Date for the relevant Interest Period or Term of the Advance the Facility Agent receives notifications from a Lender or Lenders (whose participations in an Advance exceed 40 per cent. of that Advance) that the cost to it of funding its participation in that Advance from whatever source it may reasonably select would be in excess of LIBOR or, if applicable, EURIBOR then Clause 15.4 (
Cost of funds
) shall apply to that Advance for the relevant Interest Period or Term.
|
15.4
|
Cost of funds
|
(a)
|
If this Clause 15.4 (
Cost of funds
) applies, the rate of interest on each Lender’s share of the relevant Advance for the relevant Interest Period or Term shall be the percentage rate per annum which is the sum of:
|
(i)
|
the Margin; and
|
(ii)
|
the rate notified to the Facility Agent by that Lender as soon as practicable and in any event within one Business Day of the first day of that Interest Period (or, if earlier, on the date falling five Business Days before the date on which interest is due to be paid in respect of that Interest Period), to be that which expresses as a percentage rate per annum the cost to the relevant Lender of funding its participation in that Advance from whatever source it may reasonably select.
|
(b)
|
If this Clause 15.4 (
Cost of funds
) applies and the Facility Agent or the Company so requires, the Facility Agent and the Company shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.
|
(c)
|
Any alternative basis agreed pursuant to paragraph (b) above shall, with the prior consent of all the Lenders and the Company, be binding on all Parties.
|
(d)
|
If this Clause 15.4 (
Cost of funds
) applies pursuant to Clause 15.3 (
Market disruption
): and
|
(i)
|
a Lender’s Funding Rate is less than LIBOR or, in relation to any Advance in euro, EURIBOR; or
|
(ii)
|
a Lender does not supply a quotation by the time specified in paragraph (a)(ii) above,
|
(e)
|
If this Clause 15.4 (
Cost of funds
) applies pursuant to Clause 15.1 (
Unavailability of Screen Rate
) but any Lender does not supply a quotation by the time specified in paragraph (a)(ii) above the rate of interest shall be calculated on the basis of the quotations of the remaining Lenders.
|
15.5
|
Notification to Company
|
16.
|
COMMISSIONS AND FEES
|
16.1
|
Commitment Fees
|
(a)
|
The Company shall pay (or procure the payment of) to the Facility Agent for the account of each relevant Lender (other than an Ancillary Facility Lender or any Additional Facility Lender) a commitment fee on the aggregate amount of such Lender’s Available Revolving Facility Commitment made available by it (other than any Ancillary Facility or any Additional Facility) from day to day during the period beginning on the Closing Date and ending on the Termination Date for the Revolving Facility. Such commitment fee shall be calculated at the rate of 40 per cent. of the Revolving Facility Margin and shall be payable in arrears
|
(b)
|
No commitment fee is payable to the Facility Agent (for the account of a Lender) on any Available Revolving Facility Commitment of that Lender for any day on which that Lender is a Defaulting Lender.
|
16.2
|
Arrangement, Ticking and Underwriting Fee
|
(a)
|
The Company shall pay (or procure the payment of) to the Bookrunners and Mandated Lead Arrangers, as applicable, the fees specified in the Fee Letter at the times and in the amounts specified in such letter.
|
(b)
|
The Company shall pay (or procure the payment of) to any Additional Facility Lenders the fees specified in the relevant Additional Facility Accession Deed at the times and in the amounts specified in such Additional Facility Accession Deed.
|
16.3
|
Agency Fee
|
16.4
|
Documentary Credit Fee
|
16.5
|
L/C Bank Fee
|
17.
|
TAXES
|
17.1
|
Tax Gross-up
|
(a)
|
Each payment made by the Parent or an Obligor under a Relevant Finance Document shall be made by it without any Tax Deduction, unless a Tax Deduction is required by Law. Any Tax Deduction in relation to any payment due in any currency other than Sterling shall be calculated using the Facility Agent’s Spot Rate of Exchange on the date such payment is made and the Parent and the Obligors shall have no liability if any subsequent credit or refund received by any Lender from any tax authority in relation thereto is in a different amount (when converted to the non-Sterling currency on any date).
|
(b)
|
As soon as it becomes aware that the Parent or an Obligor is or will be required by Law to make a Tax Deduction (or that there is any change in the rate at which or the basis on which such Tax Deduction is to be made) the Parent or the relevant Obligor shall notify the Facility Agent accordingly. Similarly, a Lender shall notify the Facility Agent and the Parent upon becoming so aware in respect of a payment payable to that Lender.
|
(c)
|
If a Tax Deduction is required by Law to be made by the Parent or an Obligor, the amount of the payment due shall, unless paragraph (f) below applies, be increased to an amount so that, after the required Tax Deduction is made, the payee receives an amount equal to the amount it would have received had no Tax Deduction been required.
|
(d)
|
If a Tax Deduction is required by Law to be made by the Facility Agent or the Security Trustee (other than by reason of the Facility Agent or the Security Trustee performing its obligations as such under this Agreement through an office located outside the United Kingdom) from any payment to any Relevant Finance Party which represents an amount or amounts received from the Parent or an Obligor, either the Parent or that Obligor, as the case may be, shall, unless paragraph (f) below applies, pay directly to that Relevant Finance Party an amount which, after making the required Tax Deduction enables the payee of that amount to receive an amount equal to the payment which it would have received if no Tax Deduction had been required.
|
(e)
|
If a Tax Deduction is required by Law to be made by the Facility Agent or the Security Trustee from any payment to any Relevant Finance Party under paragraph (d) above, the Facility Agent or the Security Trustee as appropriate shall unless paragraph (g) below applies, make that Tax Deduction and any payment required in connection with that Tax Deduction to the relevant taxing authority within the time allowed and in the minimum amount required by Law and within 30 days of making either a Tax Deduction or any payment in
|
(f)
|
Neither the Parent nor any Obligor is required to make a Tax Payment to a Lender under paragraphs (c) or (d) above for a Tax Deduction in respect of Tax imposed by the United Kingdom on a payment of interest by a UK Borrower in respect of a participation in an Advance by that Lender to any UK Borrower where that Lender is not a Qualifying UK Lender on the date on which the relevant payment of interest is due (otherwise than as a consequence of a Change in Tax Law) to the extent that payment could have been made without a Tax Deduction if that Lender had been a Qualifying UK Lender on that date.
|
(g)
|
The Parent or the relevant Obligor (as the case may be) which is required to make a Tax Deduction shall make that Tax Deduction and any payment required in connection with that Tax Deduction to the relevant taxing authority within the time allowed and in the minimum amount required by Law.
|
(h)
|
Within 30 days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, either the Parent or the relevant Obligor making that Tax Deduction or other payment shall deliver to the Facility Agent for the Relevant Finance Party entitled to the interest to which such Tax Deduction or payment relates, evidence that the Tax Deduction or other payment has been made or accounted for to the relevant tax authority.
|
(i)
|
Each party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.
|
17.2
|
Lender Tax Status
|
(a)
|
Each Lender to any UK Borrower represents and warrants to the Facility Agent and to each UK Borrower:
|
(i)
|
in the case of an Original Lender, that as at the date of this Agreement, it has the tax status set out opposite its name in Part 2 of Schedule 1 (
Lenders Tax Status
); or
|
(ii)
|
in the case of any other Lender, that as at the relevant Transfer Date, Increase Date or the date of the relevant Additional Facility Accession Deed, it is:
|
(A)
|
a UK Bank Lender;
|
(B)
|
a UK Non-Bank Lender and falls within paragraph (a) or (b) of the definition thereof; or
|
(C)
|
a UK Treaty Lender,
|
(b)
|
Each Lender expressed to be a “UK Non-Bank Lender” in Part 2 of Schedule 1 (
Lenders Tax Status
) or in the Transfer Deed, Transfer Agreement, Additional Facility Accession Deed or Increase Confirmation pursuant to which it becomes a Lender represents and warrants to:
|
(i)
|
the Facility Agent and to each UK Borrower, on the date of this Agreement, or on the relevant Transfer Date, Increase Date or the date of the relevant Additional Facility Accession Deed (as the case may be) that it is within paragraph (a) of the definition of UK Non-Bank Lender on that date (unless, if it is not within such paragraph (a), it is within paragraph (b) of such definition on that date, and has notified the Facility Agent of the circumstances by virtue of which it falls within such paragraph (b) and has provided evidence of the same to the Company if and to the extent requested to do so, by the Facility Agent or the Company); and
|
(ii)
|
the Facility Agent and to each UK Borrower, that unless it notifies the Facility Agent and the Company to the contrary in writing prior to any such date, its representation and warranty in paragraph (i) above is true in relation to that Lender’s participation in each Advance made to such Borrowers, on each date that such UK Borrower makes a payment of interest in relation to such Advance.
|
(c)
|
(i) A Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall include an indication to that effect (for the benefit of the Facility Agent and without liability to the Parent or any Obligor) by including its scheme reference number and its jurisdiction of tax residence opposite its name in Part 2 of Schedule 1 (
Lenders Tax Status
).
|
(i)
|
A New Lender, an Additional Facility Lender or an Increase Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall include an indication
|
(ii)
|
If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (c)(i) or (ii) above, then neither the Parent nor any Obligor shall make any filing under or in relation to the HMRC DT Treaty Passport Scheme in respect of that Lender’s Commitment(s) or is participation in any Advance unless that Lender otherwise agrees.
|
(iii)
|
The Parent or the relevant Obligor that makes a payment to which that Lender is entitled shall cooperate with the Lender in completing any procedural formalities as may be necessary for either the Parent or the relevant Obligor to obtain authorisation to make that payment without a Tax Deduction (including where a Lender includes the indication described in paragraphs (c)(i) or (ii) above, filing with HMRC, within any applicable time limit, a form DTTP2 or such equivalent or other HMRC form(s) as may be required to be filed pursuant to the HMRC DT Treaty Passport Scheme in respect of that Lender, completed in accordance with the information provided by that Lender); provided, however, that nothing in this paragraph (c)(iii) shall require a Lender to disclose any confidential information or information regarding its business, tax affairs or tax computations (including, without limitation, its tax returns or its calculations).
|
(d)
|
(i) If, in relation to any interest payment to a Lender on an Advance made to a UK Borrower:
|
(A)
|
that Lender has confirmed to the relevant UK Borrower and to the Facility Agent before that interest payment would otherwise fall due that:
|
(1)
|
it has completed, where applicable, the necessary procedural formalities referred to in, and otherwise complied with, paragraph (c) above; and
|
(2)
|
H.M. Revenue & Customs has not declined to issue the authorisation referred to in the definition of “UK Treaty Lender” (the “
Authorisation
”) in respect of that Lender in relation to that Advance, or if H.M. Revenue & Customs
|
(B)
|
the relevant UK Borrower has not received the Authorisation,
|
(C)
|
the date on which the Authorisation is received by the relevant UK Borrower;
|
(D)
|
the date that Lender confirms to the relevant UK Borrower and the Facility Agent that it is not entitled to claim full relief from liability to taxation otherwise imposed by the United Kingdom (in relation to that Lender’s participation in Advances made to that UK Borrower) on interest under a Double Taxation Treaty in relation to the relevant Interest Payment; and
|
(E)
|
the earlier of (1) the date which is six months after the date on which the relevant Interest Payment had otherwise been due and payable and (2) the date of final repayment (whether scheduled, voluntary or mandatory) of principal in respect of the relevant Interest Payment.
|
(ii)
|
For the avoidance of doubt, in the event that paragraph (i) above applies, the Interest Period or Term to which the relevant Interest Payment relates shall not be extended and the start of the immediately succeeding Interest Period or Term shall not be delayed.
|
(e)
|
Any Lender which was a Qualifying UK Lender when it became party to this Agreement but subsequently ceases to be a Qualifying UK Lender (other than by reason of a Change in Tax Law in the United Kingdom) shall promptly notify the UK Borrowers of that event, provided that if there is a Change in Tax Law in the United Kingdom which in the reasonable opinion of such UK Borrowers may result in any Lender which was a Qualifying UK Lender when it became a party to this Agreement ceasing to be a Qualifying UK Lender, such Qualifying UK Lender shall co-operate with such UK Borrowers and provide reasonable evidence requested by such UK Borrowers in order for such UK Borrowers to determine whether such Lender has ceased to be a Qualifying UK Lender
|
(f)
|
For the purposes of paragraphs (a) to (e) above, each Lender shall promptly deliver such documents evidencing its corporate and tax status as the Facility Agent or the Company may reasonably request, provided that in the event that any Lender fails to comply with the foregoing requirement, any UK Borrower shall be permitted:
|
(i)
|
to withhold and retain an amount in respect of the applicable withholding tax estimated in good faith by the Borrower to be required to be withheld in respect of interest payable to such Lender; or
|
(ii)
|
subject to the provisions of paragraph (a) of Clause 36.4 (
Assignments or Transfers by Lenders
), to refuse to grant its consent to such transfer.
|
(g)
|
In the event that either the Facility Agent or the Company has reason to believe that any representation given by a Lender in accordance with this Clause 17.2 (
Lender Tax Status
) is incorrect or inaccurate, the Facility Agent or the Company (as the case may be) shall promptly inform the other party and the relevant Lender, and may thereafter request such documents relating to the corporate and tax status of such Lender as the Facility Agent or the Company may reasonably require for the purposes of determining whether or not such representation was indeed incorrect.
|
(h)
|
If, following delivery of such documentation and following consultation between the Facility Agent, the Company and the relevant Lender, the Company concludes (acting reasonably and in good faith) that there is insufficient evidence to determine the relevant tax status of such Lender, the UK Borrower shall be permitted in respect of such Lender, to withhold and retain an amount in respect of the applicable withholding tax estimated in good faith by the UK Borrower to be required to be withheld in respect of interest payable to such Lender until such time as that Lender has delivered sufficient evidence of its tax status to the Facility Agent and the Company.
|
(i)
|
Each Relevant Finance Party shall confirm whether it is entitled to receive payments under the Relevant Finance Documents free from withholding under FATCA and shall provide any documentation, forms and other information relating to its status under FATCA reasonably requested by the Facility Agent or a Borrower sufficient for the Facility Agent and the Borrowers to comply with their obligations under FATCA and to determine whether such Relevant Finance Party has complied with such applicable reporting requirements.
|
(j)
|
Solely in the case of a Tax Deduction imposed by a jurisdiction other than the United Kingdom, and notwithstanding any other provision of this Clause 17 (
Taxes
):
|
(i)
|
any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments made by a Borrower under any Relevant Finance Document shall deliver to the Borrowers and the Facility Agent, at the time or times reasonably requested by the Borrowers or the Facility Agent (and promptly after the occurrence of a change in the Lender’s circumstance requiring a change in the most recent documentation previously delivered), such properly completed and executed documentation reasonably requested by the Borrower or the Facility Agent as will permit such payments to be made without withholding or at a reduced rate of withholding; and
|
(ii)
|
any Lender, if reasonably requested by the Borrowers or the Facility Agent, shall deliver such other documentation prescribed by an applicable requirement of law or reasonably requested by the Borrowers or the Facility Agent as will enable the Borrowers or the Facility Agent to determine whether or not such Lender is subject to withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding sentence, the completion, execution and submission of such documentation shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. In the event that any Lender fails to comply with the foregoing requirement, any Borrower shall be permitted to withhold and retain an amount in respect of the applicable withholding tax (excluding for the avoidance of doubt, any withholding tax imposed by the United Kingdom) estimated in good faith by the Borrowers to be required to be withheld in respect of interest payable to such Lender. Neither the Parent nor any Obligor is required to make a Tax Payment to a Lender under paragraphs (c) or (d) above to the extent such Taxes are attributable to a failure by a Lender to provide the documentation required to be delivered pursuant to the first sentence of this Clause 17.2(j) (
Lender Tax Status
). For the avoidance of doubt, nothing in this Clause 17.2(j) (
Lender Tax Status
) shall be understood to affect the rights of Lenders to a gross-up in respect of a Tax Deduction levied in the United Kingdom, but only to the extent permitted under Clause 17.1 (
Tax Gross-up)
.
|
17.3
|
Tax Indemnity
|
(a)
|
Subject to paragraph (b) below, the Company shall (within 10 Business Days of written demand by the Facility Agent) pay (or procure that either the Parent or the relevant Obligor pays) for the account of a Protected Party an amount equal to any Tax Liability which that Protected Party reasonably determines has been or will be suffered by that Protected Party (directly or indirectly) in connection with any Relevant Finance Document. The Protected Party shall within five Business Days’ of request by the Company provide to the Company reasonable written details explaining the loss, liability or cost and the calculation of the amount claimed by the Protected Party.
|
(b)
|
Paragraph (a) above shall not apply:
|
(i)
|
with respect to any Tax Liability of a Protected Party in respect of Tax on Overall Net Income of that Protected Party;
|
(ii)
|
to the extent that any Tax Liability has been compensated for by an increased payment or other payment under paragraphs (c) or (d) of Clause 17.1 (
Tax Gross-up
) or would have been compensated for by such an increased payment or other payment, but for the application of paragraph (f) of Clause 17.1 (
Tax Gross-up
);
|
(iii)
|
relates to a FATCA Deduction required to be made by a Party; or
|
(iv)
|
to the extent that any Tax Liability is suffered or incurred by a Finance Party in respect of a Bank Levy.
|
(c)
|
A Protected Party making, or intending to make, a claim pursuant to paragraph (a) above shall promptly notify the Facility Agent of the event which will give, or has given, rise to the claim together with supporting evidence, following which the Facility Agent shall notify the Company and provide such evidence to it.
|
(d)
|
A Protected Party shall, on receiving a payment from either the Parent or an Obligor under this Clause 17.3 (
Tax Indemnity
), notify the Facility Agent.
|
(e)
|
In this Clause 17.3 (
Tax Indemnity
):
|
(i)
|
any liability or any increase in the liability of that person to make any payment of or in respect of tax;
|
(ii)
|
any loss of any relief, allowance, deduction or credit in respect of tax which would otherwise have been available to that person;
|
(iii)
|
any setting off against income, profits or gains or against any tax liability of any relief, allowance, deduction or credit in respect of tax which would otherwise have been available to that person; and
|
(iv)
|
any loss or setting off against any tax liability of a right to repayment of tax which would otherwise have been available to that person.
|
17.4
|
Tax Credit
|
(a)
|
If either the Parent or an Obligor makes a Tax Payment and the relevant Relevant Finance Party determines, in its sole opinion, that:
|
(i)
|
a Tax Credit is attributable to that Tax Payment; and
|
(ii)
|
that Relevant Finance Party has obtained, utilised and retained that Tax Credit,
|
(b)
|
Each Relevant Finance Party shall have an absolute discretion as to the time at which and the order and manner in which it realises or utilises any Tax Credits and shall not be obliged to arrange its business or its tax affairs in any particular way in order to be eligible for any credit or refund or similar benefit.
|
(c)
|
No Relevant Finance Party shall be obliged to disclose to any other person any information regarding its business, tax affairs or tax computations (including, without limitation, its tax returns or its calculations).
|
(d)
|
If a Relevant Finance Party has made a payment to the Parent or an Obligor pursuant to this Clause 17.4 (
Tax Credit
) on account of a Tax Credit and it subsequently transpires that that Relevant Finance Party did not receive that Tax Credit, or received a reduced Tax Credit, either the Parent or such Obligor, as the case may be, shall, on demand, pay to that Relevant Finance Party the amount which that Relevant Finance Party determines, acting reasonably and in good faith, will put it (after that payment is received) in the same after-tax position as it would have been in had no such payment or a reduced payment been made to the Parent or such Obligor.
|
(e)
|
No Relevant Finance Party shall be obliged to make any payment under this Clause 17.4 (
Tax Credit
) if, by doing so, it would contravene the terms of any applicable Law or any notice, direction or requirement of any governmental or regulatory authority (whether or not having the force of law).
|
18.
|
INCREASED COSTS
|
18.1
|
Increased Costs
|
(a)
|
the introduction or implementation of or any change in (or any change in the interpretation, administration or application of) any Law, regulation, practice or concession or any directive, requirement, request or guideline (whether or not having the force of law but where such law, regulation, practice, concession, directive, requirement, request or guideline does not have the force of law, it is one with which banks or financial institutions subject to the same are generally accustomed to comply) of any central bank, including the European Central Bank, the Financial Services Authority or any other fiscal, monetary, regulatory or other authority after the date of this Agreement; or
|
(b)
|
compliance with any Law, regulation, practice, concession or any such directive, requirement, request or guideline made after the date of this Agreement.
|
18.2
|
Increased Costs Claims
|
(a)
|
A Relevant Finance Party intending to make a claim pursuant to Clause 18.1 (
Increased Costs
) shall notify the Facility Agent of the event giving rise to the claim, following which the Facility Agent shall promptly notify the Company.
|
(b)
|
Each Relevant Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its, or if applicable, its Affiliate’s Increased Costs and setting out in reasonable detail the circumstances giving rise to such claim and its calculations in relation to such Increased Costs.
|
18.3
|
Exceptions
|
(a)
|
is attributable to a Tax Deduction required by Law to be made by the Parent or an Obligor, as the case may be;
|
(b)
|
is compensated for by Clause 17.3 (
Tax Indemnity
) (or would have been compensated for by Clause 17.3 (
Tax Indemnity
) but was not so compensated solely because Clause 17.3(b) (
Tax Indemnity
) applied) or because of any failure to complete necessary procedural formalities under Clause 17.2(c) (
Lender Tax Status
);
|
(c)
|
is attributable to the gross negligence of or wilful breach by, the Relevant Finance Party or, if applicable, any of its Affiliates of any law, regulation, practice, concession, directive, requirement, request or guideline, to which the imposition of such Increased Cost relates;
|
(d)
|
suffered by a Relevant Finance Party and in respect of which that Relevant Finance Party intends to make a claim pursuant to Clause 18.2(a) (
Increased Costs Claims
), is not (and its claim under Clause 18.2(a) (
Increased Costs Claims
) is not) notified by that Relevant Finance Party to the Facility Agent within 30 days of that Relevant Finance Party becoming aware that it had suffered the relevant Increased Cost; or
|
(e)
|
is attributable to the implementation of or compliance with the “International Convergence of Capital Measurement and Capital Standards, a Revised Framework” published by the Basel Committee on Banking Supervision in June 2004 in the form existing on the Signing Date (“
Basel II
”) or any other law or regulation which implements Basel II (whether such implementation, application or compliance is by a government, regulator, Relevant Finance Party or any of its Affiliates).
|
(f)
|
attributable to a FATCA Deduction required to be made by a Party; or
|
(g)
|
is attributable to any Bank Levy but only to the extent that such Bank Levy is no more onerous than in respect of:
|
(i)
|
a Bank Levy not yet enacted into law, any draft of such proposed Bank Levy as at the date of this Agreement; or
|
(ii)
|
any other Bank Levy, as set out under existing law as at the date of this Agreement.
|
19.
|
ILLEGALITY
|
19.1
|
Illegality of a Lender
|
(a)
|
that Lender shall promptly notify the Facility Agent upon becoming aware of that event;
|
(b)
|
upon the Facility Agent notifying the Company, the Commitments of that Lender shall immediately be reduced to zero and cancelled or, if required by the Company, on such date transferred to another bank or institution willing to accept that transfer; and
|
(c)
|
upon the Facility Agent notifying the Company, the Company shall procure that each Borrower will, on such date as the Facility Agent shall have specified (being no earlier than the last day permitted by law):
|
(i)
|
repay that Lender’s participation in the Utilisations utilised by that Borrower (together with accrued interest on and all other amounts owing to that Lender under the Relevant Finance Documents) or, if required by the Company, that Lender’s participations shall on such date be transferred at par to another bank or institution willing to accept that transfer (to the extent it is lawful for such Lender to undertake such transfer); and/or
|
(ii)
|
repay each amount payable or, as the case may be, provide full cash cover in respect of each contingent liability under each Ancillary Facility of that Ancillary Facility Lender.
|
19.2
|
Illegality in Relation to an L/C Bank
|
(a)
|
that L/C Bank shall promptly notify the Facility Agent upon becoming aware of that event:
|
(b)
|
upon the Facility Agent notifying the Company, that L/C Bank shall not be obliged to issue any future Documentary Credit that would give rise to such unlawfulness; and
|
(c)
|
upon the Facility Agent notifying the Company, each relevant Borrower shall use its best endeavours to procure the release of any Affected Documentary Credit.
|
20.
|
MITIGATION
|
20.1
|
Mitigation
|
(a)
|
Each Relevant Finance Party shall in consultation with the Company, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under, or pursuant to, or cancelled pursuant to, any of Clause 17 (
Taxes
), Clause 18 (
Increased Costs
) or Clause 19 (
Illegality
) including (but not limited to) transferring its rights and obligations under the Relevant Finance Documents to another Affiliate or Facility Office or financial institution acceptable to the Company which is willing to participate in any Facility in which such Lender has participated.
|
(b)
|
Paragraph (a) above does not in any way limit the obligations of the Parent or any Obligor under the Relevant Finance Documents.
|
20.2
|
Limitation of Liability
|
(a)
|
With effect from the Signing Date, each of the Borrowers agrees to indemnify each Relevant Finance Party for all costs and expenses reasonably incurred by that Relevant Finance Party as a result of steps taken by it under Clause 20.1 (
Mitigation
).
|
(b)
|
A Relevant Finance Party is not obliged to take any steps under Clause 20.1 (
Mitigation
) if, in the opinion of that Relevant Finance Party (acting reasonably), to do so might in any way be prejudicial to it.
|
21.
|
REPRESENTATIONS AND WARRANTIES
|
21.1
|
Representations and warranties
|
21.2
|
Status
|
(a)
|
It is a company duly organised or a partnership duly formed, in either case, validly existing under the laws of its jurisdiction of incorporation or establishment.
|
(b)
|
It has the power to own its assets and carry on its business as it is being conducted.
|
21.3
|
Powers and authority
|
(a)
|
to enter into and comply with all obligations expressed on its part under the Relevant Finance Documents; and
|
(b)
|
(in the case of a Borrower) to borrow under this Agreement; and
|
(c)
|
(in the case of a Guarantor) to give the guarantee in Clause 28 (
Guarantee and Indemnity
),
|
(d)
|
and has taken all necessary actions to authorise the execution, delivery and performance of the Relevant Finance Documents to which it is a party.
|
21.4
|
Legal validity
|
(a)
|
Each Relevant Finance Document to which it is or will be a party constitutes, or when executed in accordance with its terms will constitute, its legal, valid and binding obligations enforceable, subject to any relevant reservations or qualifications as to matters of law contained in any legal opinion delivered under this Agreement, in accordance with its terms.
|
(b)
|
The choice of English law, or as the case may be, Delaware law, or as the case may be Scots law, as the governing law of the Relevant Finance Documents and its irrevocable submission to the jurisdiction of the courts of England in respect of any proceedings relating to the Relevant Finance Documents (in each case other than any Relevant Finance Document which is expressly to be governed by a law other than English law, or as the case may be, Delaware law, or as the case may be Scots law) will be recognised and enforced in its jurisdiction of
|
(c)
|
Any judgment obtained in England in relation to a Relevant Finance Document (in each case other than any Security Document which is expressly to be governed by a law other than English law) will be recognised and enforced in its jurisdiction of incorporation, subject to any relevant reservation or qualification as to matters of law contained in any legal opinion referred to in paragraph (a) above.
|
21.5
|
Non-violation
|
(a)
|
in any material respect, any law or regulation or official judgment or decree applicable to it;
|
(b)
|
in any material respect, its constitutional documents; or
|
(c)
|
any agreement or instrument to which it is a party or binding on any of its assets or binding upon any other member of the Bank Group or any other member of the Bank Group’s assets, where such violation would or is reasonably likely to have a Material Adverse Effect.
|
21.6
|
Consents
|
(a)
|
Subject to any relevant reservations or qualifications contained in any legal opinion referred to in Clause 21.4(a) (
Legal validity
) above, all material and necessary authorisations, registrations, consents, approvals, licences (other than the Licences), and filings required by it in connection with the execution, validity or enforceability of the Relevant Finance Documents to which it is a party and performance of the transactions contemplated by the Relevant Finance Documents have been obtained (or, if applicable, will be obtained within the required time period) and are validly existing.
|
(b)
|
The Licences are in full force and effect and each member of the Bank Group is in compliance in all material respects with all provisions thereof such that the Licences are not the subject of any pending or, to the best of its knowledge, threatened attack, suspension or revocation by a competent authority except, in each case, to the extent that any lack of effect, non-compliance or attack, suspension or revocation of a Licence would not have or not be reasonably likely to have a Material Adverse Effect.
|
(c)
|
All the Necessary Authorisations are in full force and effect, each member of the Bank Group is in compliance in all material respects with all provisions thereof
|
21.7
|
Event of Default
|
21.8
|
Telecommunications, Cable and Broadcasting Laws
|
(a)
|
To the best of its knowledge and belief, it and each member of each Joint Venture Group is in compliance in all material respects with all Telecommunications, Cable and Broadcasting Laws (but excluding, for these purposes only, breaches of Telecommunications, Cable and Broadcasting Laws which have been expressly waived by the relevant regulatory authority), in each case, where failure to do so would reasonably be expected to have a Material Adverse Effect.
|
(b)
|
To the best of its knowledge and belief, it and each member of each Joint Venture Group is in compliance in all material respects with any conditions set by the Director General of Telecommunications or by OFCOM under section 45 of the Communications Act 2003 as are applicable to it or such member of the Joint Venture Group (as the case may be), in each case, where failure to do so would reasonably be expected to have a Material Adverse Effect.
|
21.9
|
Accounts
|
(a)
|
The consolidated financial statements of the Reporting Entity most recently delivered to the Facility Agent (which, at the date of this Agreement are the Original Financial Statements):
|
(i)
|
present fairly in all material respects its financial position and the consolidated financial position of the Company as at the date to which they were drawn up; and
|
(ii)
|
have been prepared in all material respects in accordance with the Relevant Accounting Principles (except that such consolidated financial statements do not include all consolidated Subsidiaries to the extent they are Unrestricted Subsidiaries); and
|
(b)
|
the consolidated financial statements and other information related to the financial position of the Bank Group provided under this Agreement and most recently delivered to the Facility Agent are correct in all material respects.
|
21.10
|
Financial condition
|
21.11
|
Environmental laws
|
(a)
|
Each member of the Bank Group is in compliance with Clause 23.33 (
Environmental compliance
) and to the best of its knowledge and belief (having made due and careful enquiry) no circumstances have occurred which would prevent such compliance in a manner or to an extent which has or is reasonably likely to have a Material Adverse Effect.
|
(b)
|
No Environmental Claim has been commenced or (to the best of its knowledge and belief (having made due and careful enquiry)) is threatened against any member of the Bank Group where that claim has or is reasonably likely, if determined against that member of the Bank Group, to have a Material Adverse Effect.
|
21.12
|
Security Interests
|
21.13
|
Litigation and insolvency proceedings
|
(a)
|
No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency have been started against any member of the Bank Group and, to its knowledge, no such proceedings are threatened, where in any such case, there is a reasonable likelihood of an adverse outcome to any member of the Bank Group where that outcome is of a nature which would or is reasonably likely to have a Material Adverse Effect.
|
(b)
|
None of the circumstances referred to in Clause 26.7 (
Insolvency proceedings
) have been commenced against it or any member of the Bank Group which is a Material Subsidiary.
|
21.14
|
Tax liabilities
|
21.15
|
Ownership of assets
|
21.16
|
Intellectual Property Rights
|
21.17
|
Bank Group structure
|
21.18
|
ERISA
|
21.19
|
Anti-Terrorism Laws
|
(a)
|
is, or is controlled by, a Designated Party;
|
(b)
|
to its knowledge, has received funds or other property from a Designated Party; or
|
(c)
|
to its knowledge, is in breach of any Anti-Terrorism Law.
|
21.20
|
Margin stock
|
21.21
|
Investment Company Act
|
21.22
|
Claims Pari Passu
|
21.23
|
No Immunity
|
21.24
|
Centre of Main Interests
|
21.25
|
Broadcasting Act 1990
|
21.26
|
No Material Misstatements
|
21.27
|
Solvency
|
21.28
|
Sanctions
|
21.29
|
Pension Plans
|
(a)
|
Each UK DB Scheme has been valued by an actuary appointed by the trustees of such plan in all material respects in accordance with all laws applicable to it and using actuarial assumptions and recommendations complying with statutory requirements or approved by the actuary and since the most recent valuation the relevant employers have paid contributions to the plan in accordance with the schedule of contributions in force from time to time in relation to the plan, in the case of each of the foregoing, save to the extent that any failure to do so would not reasonably be expected to have a Material Adverse Effect.
|
(b)
|
Neither it nor any ERISA Affiliate has, at any time, maintained or contributed to, and is not obliged to maintain or contribute to, any Plan that is subject to Title IV or Section 302 of ERISA and/or Section 412 of the Code or any Multiemployer Plan.
|
21.30
|
Times for making representations and warranties
|
(a)
|
The representations and warranties set out in this Clause 21 (
Representations and warranties
) are made by each Obligor, the Company (as applicable) and the Parent regarding itself (other than those contained in Clauses 21.9 (
Accounts
), 21.10 (
Financial condition
) and Clause 21.14 (
Tax liabilities
) which shall only be made by the Company) on the Signing Date and the representations and warranties set out in Clauses 21.2 (
Status
), 21.3 (
Powers and authority
), 21.4 (
Legal validity
), 21.9 (
Accounts
), 21.20 (
Margin stock
), 21.23 (
No Immunity
) and 21.24 (
Centre of Main Interests
) are deemed to be made again by each relevant Obligor, the Company (as applicable) or the Parent, as applicable on the date of each Utilisation Request, the first day of each Interest Period and on each Utilisation Date with reference to the facts and circumstances then existing and the representations and warranties set out in Clause 21.27 (
Solvency
) are deemed to be made by the US Obligors on the dates set out in that clause with reference to the facts and circumstances then existing.
|
(b)
|
The representations and warranties set out in this Clause 21 (
Representations and warranties
) (except Clauses 21.9 (
Accounts
), 21.10 (
Financial condition
), 21.17 (
Bank Group structure
) and 21.22 (
Claims Pari Passu
)) are repeated by each Acceding Obligor with respect to itself on the date of the Obligor Accession
|
22.
|
FINANCIAL COVENANT
|
22.1
|
Financial definitions
|
(a)
|
for the purposes of the definition of Permitted Acquisition, Clause 23.11 (
Disposals
) and Clause 12.2 (
Mandatory prepayment from disposal proceeds
) in respect of any person, in respect of any six month period, two times EBITDA of that person (calculated on a consolidated basis) for that period; and
|
(b)
|
for all other purposes, in respect of any Ratio Period, two times EBITDA of the Bank Group for that Ratio Period.
|
(a)
|
depreciation;
|
(b)
|
amortisation;
|
(c)
|
non-cash stock compensation expenses;
|
(d)
|
other non-cash impairment charges;
|
(e)
|
one off reorganisation or restructuring charges;
|
(f)
|
direct acquisition costs, losses (gains) on the sale of operating assets;
|
(g)
|
accrued Management Fees (whether paid or not paid);
|
(h)
|
(at the Company’s option) non-cash charges;
|
(i)
|
(at the Company’s option) any stock based compensation expenses;
|
(j)
|
(at the Company’s option) direct or related acquisition, disposal, recapitalisation, debt incurrence or equity offering costs;
|
(k)
|
(at the Company’s option) any non-recurring, exceptional, extraordinary, one-off or unusual items (including one-off reorganisation and restructuring charges);
|
(l)
|
(at the Company’s option) the effects of adjustments pursuant to Relevant Accounting Principles attributable to the application of recapitalisation
|
(m)
|
(at the Company’s option) Holding Company Expenses paid to the extent that they were permitted to be paid under this Agreement for such Ratio Period;
|
(n)
|
(at the Company’s option) Specified Legal Expenses;
|
(o)
|
(at the Company’s option) the amount of loss on sale of assets or transfer of any assets in connection with an asset securitisation programme receivables factoring transaction or other receivables transaction;
|
(p)
|
(at the Company’s option) any net earnings or losses attributable to non-controlling interests;
|
(q)
|
(at the Company’s option) any share of income or loss on equity investments;
|
(r)
|
(at the Company’s option) any deferred financing costs written off and premiums paid to extinguish debt early;
|
(s)
|
(at the Company’s option) any unrealised gains or losses in respect of hedging;
|
(t)
|
(at the Company’s option) tangible or intangible asset impairment charges;
|
(u)
|
(at the Company’s option) capitalised interest on Subordinated Funding;
|
(v)
|
(at the Company’s option) accruals and reserves established or adjusted within twelve months after the closing date of any acquisition required to be established or adjusted in accordance with the Relevant Accounting Principles;
|
(w)
|
(at the Company’s option) any expense to the extent covered by insurance or indemnity and actually reimbursed;
|
(x)
|
(at the Company’s option) any realised and unrealised gains and losses due to changes in the fair value of equity investments;
|
(y)
|
(at the Company’s option) realised gains (losses) (to the extent not already included) arising at maturity or on termination of forward foreign exchange and other currency hedging contracts entered into with respect to operational cash flows;
|
(z)
|
(at the Company’s option) any up-front installation fees associated with commercial contract installations completed during such Ratio Period (less any portion of such fees included in earnings);
|
(aa)
|
(at the Company’s option) earn out payments to the extent such payments are treated as capital payments under the Relevant Accounting Principles;
|
(bb)
|
(at the Company’s option) any fees or other amounts charged or credited to the Company’s and the guarantors related to Intra-Group Services may be excluded to the extent such fees or other amounts:
|
(i)
|
are not included in the Company’s externally reported operating cash flow or equivalent measure; or
|
(ii)
|
are deemed to be exceptional or unusual item; and
|
(cc)
|
to the extent not already included in operating income, the amount received from business interruption insurance and reimbursements of any expenses covered by indemnification or other reimbursement in connection with a Permitted Acquisition, any investment or any Permitted Disposal,
|
(a)
|
interest and amounts in the nature of interest (including without limitation, the interest element of finance leases) accrued;
|
(b)
|
discounts suffered and repayment premiums payable in respect of Financial Indebtedness (other than repayment premiums in respect of the High Yield Notes and Senior Secured Notes), in each case to the extent that the applicable Relevant Accounting Principles require that such discounts and premiums be treated as or in like manner to interest;
|
(c)
|
discount fees and acceptance fees payable or deducted in respect of any Financial Indebtedness (including all commissions payable in connection with any letters of credit); and
|
(d)
|
any net payment (or, if appropriate in the context, receipt) under any interest rate hedging agreement or instrument (including without limitation under the Hedging Agreements), taking into account any premiums payable.
|
(a)
|
any Financial Indebtedness of any member of the Bank Group to another member of the Bank Group (including contingent obligations) or under any Subordinated Funding, to the extent not prohibited under this Agreement;
|
(b)
|
any Financial Indebtedness arising by reason only of mark to market fluctuations in respect of interest rate and foreign exchange hedging arrangements since the original date on which such hedging arrangements were consummated;
|
(c)
|
any Financial Indebtedness referred to in Clauses 23.13(b)(viii), 23.13(b)(xii), 23.13(b)(xiii) and 23.13(b)(xvii) (
Restrictions on Financial Indebtedness
), and for a period of six months following the date of completion of an acquisition referred to in Clause 23.13(b)(xi) only and to the extent outstanding as at the relevant time, Clause 23.13(b)(ix) (
Restrictions on Financial Indebtedness
);
|
(d)
|
any Financial Indebtedness up to a maximum amount equal to the Revolving Facility Excluded Amount (or its equivalent in other currencies) at the relevant time incurred under the Revolving Facility or under any Additional Facility that is a revolving credit facility; and
|
(e)
|
any Financial Indebtedness which is a contingent obligation.
|
(a)
|
any Financial Indebtedness of any member of the Bank Group to another member of the Bank Group (including contingent obligations) or under any Subordinated Funding, to the extent not prohibited under this Agreement;
|
(b)
|
any Financial Indebtedness arising by reason only of mark to market fluctuations in respect of interest rate and foreign exchange hedging arrangements since the original date on which such hedging arrangements were consummated;
|
(c)
|
any Financial Indebtedness referred to in Clauses 23.13(b)(viii), 23.13(b)(xii), 23.13(b)(xiii), 23.13(b)(xvii) and, for a period of six months following the date of completion of an acquisition referred to in Clause 23.13(b)(xi) only and to the extent outstanding as at the relevant time, Clause 23.13(b)(xi) (
Restrictions on Financial Indebtedness
);
|
(d)
|
any Financial Indebtedness up to a maximum amount equal to the Revolving Facility Excluded Amount (or its equivalent in other currencies) at the relevant time incurred under the Revolving Facility or under any Additional Facility that is a revolving credit facility; and
|
(e)
|
any Financial Indebtedness which is a contingent obligation,
|
22.2
|
Financial Ratio
|
22.3
|
Calculations
|
22.4
|
Cure provisions
|
(a)
|
The Company may cure a breach of the financial ratio set out in Clause 22.2 (
Financial Ratio
) by procuring that additional equity is injected into the Bank Group by one or more Restricted Persons and/or additional Subordinated Funding are/is provided to the Bank Group in an aggregate amount equal to the amount which:
|
(i)
|
if it had been deducted from Total Net Debt (as applicable) for the Ratio Period in respect of which the breach arose, would have avoided the breach; or
|
(ii)
|
if it had been added to EBITDA for the Ratio Period in respect of which the breach arose, would have avoided the breach.
|
(b)
|
A cure under this Clause 22.4 (
Cure provisions
) will not be effective unless the required amount of additional equity or the proceeds of any Subordinated Funding is/are received by one or more members of the Bank Group within 15 Business Days of delivery of the financial statements delivered under Clause 23.2 (
Financial information
) which show that Clause 22.2 (
Financial Ratio
) has been breached.
|
(c)
|
No cure may be made under this Clause 22.4 (
Cure provisions
):
|
(i)
|
in respect of more than five Ratio Periods during the life of the Facilities; or
|
(ii)
|
in respect of consecutive Ratio Periods.
|
(d)
|
The Company shall be under no obligation to apply any equity injected or the proceeds of any Subordinated Funding into the Bank Group under paragraph (a) in prepayment of the Facilities and to the extent not applied such amount will be deemed to be deducted from Total Net Debt or added to EBITDA for the purposes of Clause 22.2 (
Financial Ratio
) (as applicable).
|
(e)
|
For the purpose of ascertaining compliance with Clause 22.2 (
Financial Ratio
), the ratio set out in Clause 22.2 (
Financial Ratio
), will be tested or retested, as applicable, giving effect to the adjustment referred to in paragraph (d) above. If, after giving effect to the adjustment, the requirements of Clause 22.2 (
Financial Ratio
) are met, then the requirements under Clause 22.2 (
Financial Ratio
) shall be deemed to have been satisfied as at the relevant original date of determination.
|
22.5
|
Determinations
|
(a)
|
Financial Indebtedness of the Bank Group or the Parent and any other issuer of Parent Debt originally denominated in any currency other than Sterling that has been swapped, directly or indirectly through one or more foreign exchange hedging transactions, into Sterling, will be taken into account at its Sterling equivalent using the effective exchange rate in the relevant foreign exchange hedging transactions;
|
(b)
|
subject to Clause 1.2 (
Accounting Expressions
), all the terms used above are to be calculated in accordance with the Relevant Accounting Principles;
|
(c)
|
notwithstanding paragraphs (a) and (b) above, Hedged Debt (as defined below) will be taken into account at its Sterling equivalent calculated using the same weighted average exchange rates for the relevant ratio period used in the profit and loss statements of the relevant accounts of the Bank Group or the Parent and any other issuer of Parent Debt for calculating the Sterling equivalent of EBITDA denominated in the same currency as the currency in which that Hedged Debt is denominated or into which it has been swapped, as described below:
|
(i)
|
Financial Indebtedness of the Bank Group or the Parent or any other issuer of Parent Debt originally denominated in any currency other than Sterling in which any member of the Bank Group or the Parent or any other issuer of Parent Debt earns EBITDA (a functional currency) and that has not been swapped, directly or indirectly through one or more foreign exchange hedging transactions, into Sterling; and
|
(ii)
|
Financial Indebtedness of the Bank Group or the Parent or any other issuer of Parent Debt that has been swapped, directly or indirectly through one or more foreign exchange hedging transactions, into a functional currency; and
|
(d)
|
if there is a dispute as to any interpretation of or computation for Clause 22.1 (
Financial definitions
), the interpretation or computation of the Auditors shall prevail.
|
22.6
|
Pro forma
calculations
|
(a)
|
the calculations shall be determined in good faith by a responsible financial or accounting officer of the Bank Group and shall be made on a
pro forma
basis giving effect to all material acquisitions and disposals made by the Bank Group (including in respect of anticipated expense and cost reductions) and including as a result of, or that would result from, any actions taken, committed to be taken or with respect to which substantial steps have been taken, by the Company or any other member of the Bank Group in connection with any cost reduction synergies or cost savings plan or program or in connection with any transaction, investment, acquisition, disposition, restructuring, corporate reorganization or otherwise (regardless of whether such cost reduction synergies and cost savings plans or programs could then be reflected in
pro forma
financial statements to the extent prepared);
|
(b)
|
unless otherwise specified in this Agreement, all references to Annualised EBITDA shall be for the most recent Ratio Period for which financial statements have been delivered to the Facility Agent under this Agreement;
|
(c)
|
EBITDA for the relevant period will be calculated after giving
pro forma
effect thereto as if such transaction, investment, acquisition, disposition, restructuring, corporate reorganization or otherwise occurred on the first day of such period; and
|
(d)
|
interest on any indebtedness that bears interest at a floating rate and that is being given
pro forma
effect shall be calculated as if the rate in effect on the date of calculation had been applicable for the entire period (taking into account any hedging in respect of such indebtedness).
|
23.
|
UNDERTAKINGS
|
23.1
|
Duration
|
23.2
|
Financial information
|
(a)
|
The Company shall provide to the Facility Agent in sufficient copies for all the Lenders the following financial information relating to the Reporting Entity or the Bank Group, as the case may be (provided however, that to the extent any reports are filed on the SEC’s website or the Company’s website, such reports shall be deemed supplied to the Facility Agent in sufficient copies for all the Lenders):
|
(i)
|
as soon as they become available but in any event within 150 days after the end of each of the Reporting Entity’s financial years, the audited consolidated financial statements for such financial year for the Reporting Entity; and
|
(ii)
|
as soon as they become available but in any event within 60 days after the end of each of the first three Financial Quarters of each financial year (and within 150 days after the end of the last Financial Quarter), the unaudited balance sheet, statement of cash flows and statement of operations for such Financial Quarter in respect of the Reporting Entity with such adjustments as may be necessary to include the balance sheet, statement of cash flows and statement of operations of members of the Bank Group that are not Subsidiaries of the Reporting Entity.
|
(b)
|
Together with any financial statements provided in accordance with paragraph (a) above, the Company shall provide to the Facility Agent a certificate signed by an authorised signatory of the Reporting Entity:
|
(i)
|
confirming that no Default is outstanding or if a Default is outstanding, specifying the Default and the steps, if any, being taken to remedy it;
|
(ii)
|
if as at the last day of the Ratio Period ending on or immediately prior to the date of such financial statements the aggregate of the Revolving Facility Outstandings and any Additional Facility Outstandings in relation to an Additional Facility that is a revolving facility and the net indebtedness outstanding under each Ancillary Facility exceeds an amount equal to 33⅓ per cent. of the aggregate of the Revolving Facility Commitments and any Additional Facility Commitments in relation to an Additional Facility that is a revolving facility and each Ancillary Facility Commitment, setting out in reasonable detail computations establishing as at the date of such financial statements, compliance (or detailing any non-compliance) with the financial ratio set out in Clause 22.2 (
Financial Ratio
) and showing figures representing the actual financial ratio then in effect, together with a schedule containing the components and amounts of Parent Debt; and
|
(iii)
|
certifying compliance with Clause 23.12(a) (
Acquisitions and mergers
).
|
(c)
|
Without prejudice to Clause 23.4 (
Change in Accounting Practices
) the financial information delivered pursuant to paragraphs (a)(ii) and (a)(iii) above shall be prepared in good faith using the same methodologies applied in preparing the audited consolidated financial statements of the Reporting Entity delivered to the Facility Agent pursuant to paragraph (a)(i) above.
|
(d)
|
If at any time the Company is not the Reporting Entity, the Company shall provide to the Facility Agent, together with the financial statements delivered under paragraph (a) above, in sufficient copies for all the Lenders, the Bank Group Reconciliation for the relevant Accounting Period (provided however, that to the extent the Bank Group Reconciliation for the relevant Accounting Period is filed on the SEC’s website or the Company’s website, such Bank Group Reconciliation shall be deemed supplied to the Facility Agent in sufficient copies for all the Lenders).
|
(e)
|
Any financial statements provided to the Facility Agent pursuant to this Agreement shall be provided together with the accounts of any Permitted Affiliate Parent and any of its Subsidiaries that are members of the Bank Group on a combined basis.
|
23.3
|
Information – Miscellaneous
|
(a)
|
all notices, reports or other documents despatched by or on behalf of any Obligor to its creditors generally in relation to it or any of its Subsidiaries;
|
(b)
|
a copy of any material report or other notice, statement or circular, sent or delivered by any member of the Bank Group whose shares are pledged to the Security Trustee pursuant to any Security Document to any person in its capacity as shareholder of such member of the Bank Group, which materially adversely affects the interest of the Relevant Finance Parties under such Security Document; and
|
(c)
|
such other material information regarding the Bank Group and which is in the possession or control of any member of the Bank Group as the Facility Agent may from time to time reasonably request.
|
23.4
|
Change in Accounting Practices
|
(a)
|
The Company may elect to apply for all purposes of this Agreement, in lieu of GAAP, IFRS. Thereafter, the Company may re-elect to apply for all purposes of this Agreement, in
lieu
of IFRS, GAAP.
|
(b)
|
Subject to the provisions of this Clause 23.4 (
Change in Accounting Practices
), after any such election in accordance with paragraph (a) above all:
|
(i)
|
accounting expressions not otherwise defined in this Agreement shall be construed in accordance with; and
|
(ii)
|
ratios, computations, and other determinations based on GAAP contained in this Agreement shall be computed in conformity with,
|
(c)
|
The Company shall ensure that each set of financial information delivered to the Facility Agent pursuant to Clause 23.2(a) (
Financial information
) is prepared using accounting policies, practices and procedures consistent with that applied in the preparation of the Original Financial Statements, unless in relation to any such set of financial information, the Company elects to notify the Facility Agent that there have been one or more changes in any such accounting policies, practices or procedures (including, without limitation, any change in the basis upon which costs are capitalised or any changes resulting from the Company’s decision at any time to adopt GAAP or IFRS) and:
|
(i)
|
in respect of any change in the basis upon which the information required to be delivered pursuant to Clause 23.2 (
Financial information
) is prepared, the Company provides either a statement (providing reasonable detail) confirming the changes would have no material effect on the operation of the ratio set out in Clause 22.2 (
Financial Ratio
) and/or any other ratio set out in this Agreement or:
|
(A)
|
a description of the changes and the adjustments which would be required to be made to that financial information in order to cause them to reflect the accounting policies, practices or procedures upon which the Original Financial Statements were prepared; and
|
(B)
|
sufficient information, in such detail and format as may be reasonably required by the Facility Agent, to enable the Lenders to make an accurate comparison between the financial positions indicated by that financial information and by the Original Financial Statements,
|
(ii)
|
in the event of any changes to such accounting policies, practices or procedures other than resulting from the Company’s decision to adopt IFRS, if the Company notifies the Facility Agent that it is no longer practicable to test compliance with the financial covenant set out in Clause 22 (
Financial Covenant
) and/or any other ratio set out in this Agreement against the financial information required to be delivered pursuant to this Clause 23 (
Undertakings
) or that it wishes to cease preparing the additional information required by paragraph (a) above, in which case:
|
(A)
|
the Facility Agent and the Company shall enter into negotiations with a view to agreeing an alternative financial covenant and/or ratio to replace the ratio contained in Clause 22 (
Financial Covenant
) and/or any other ratio set out in this Agreement in order to maintain a consistent basis for such financial covenant or ratio (and for approval by the Instructing Group); and
|
(B)
|
if the Facility Agent and the Company agree alternative financial covenant to replace those contained in Clause 22 (
Financial Covenant
) and/or any other ratio set out in this Agreement which are acceptable to the Instructing Group, such alternative financial covenant shall be binding on all parties hereto; and
|
(C)
|
if, after three months following the date of the notice given to the Facility Agent pursuant to this paragraph (c), the Facility Agent and the Company cannot agree an alternative financial covenant/and or other ratio set out in this Agreement which are acceptable to the Instructing Group, the Facility Agent shall refer the matter to any of the auditors as may be agreed between the Company and the Facility Agent for determination of the adjustments required to be made to such financial information or the calculation of such ratios to take account of such change, such determination to be binding on the parties hereto, provided that pending such determination (but not thereafter) the Company shall continue to prepare financial information and calculate such financial covenant in accordance with paragraph (i) above; or
|
(iii)
|
in the event of any changes to such accounting policies, practices or procedures resulting from the Company’s decision to adopt IFRS, if the Company notifies the Facility Agent that it is no longer practicable to test compliance with the financial covenant set out in Clause 22 (
Financial Covenant
) and/or any other ratio set out in this Agreement against the financial information required to be delivered pursuant to this Clause 23
|
(A)
|
the Company shall provide the Facility Agent with a revised (1) financial covenant ratio level to replace that contained in Clause 22.2 (
Financial Ratio
) and/or a revised ratio to replace that set out in any other provision of this Agreement (the “
Revised Ratios
”) and (2) financial covenant definitions to replace those contained in Clause 22.1 (
Financial definitions
) (the “
Revised Definitions
”), in each case resulting from the adoption of IFRS by the Company and that are substantially equivalent to the financial covenant ratio levels and definitions in existence at such time on the basis of GAAP, as confirmed by a report of a reputable accounting firm; and
|
(B)
|
the Revised Ratios and Revised Definitions shall become effective, and this Agreement be amended accordingly to reflect such amendments without any further consents from any Lender, if the Facility Agent (acting on the instructions of the Instructing Group) has not objected (acting reasonably) to the implementation of the Revised Ratios and Revised Definitions within 60 days after receipt thereof provided that, if at any time after the Company has adopted IFRS, it then elects to adopt GAAP, this Agreement shall, immediately upon such election, be amended to reflect such amendments without any further consents by any Relevant Finance Party to implement a deletion of the Revised Ratios and Revised Definitions and to reinstate the financial covenant ratio level contained in Clause 22.2 (
Financial Ratio
) and/or any other ratio set out in any other provision of this Agreement and the financial covenant definitions contained in Clause 22 (
Financial definitions
), in each case, as at the First Effective Date (updated to reflect any other amendments made since the First Effective Date) subject to any amendments in accordance with paragraphs (i) and (ii) above and provided that the reconciliation required under paragraph (i) above is also provided by the Company,
|
23.5
|
Notification of Default and inspection rights
|
(a)
|
Each Obligor shall notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it (unless that Obligor is aware that such a notification has already been provided by another Obligor).
|
(b)
|
Each Obligor shall, if required by the Facility Agent (acting on the instructions of the Instructing Group), at any time whilst an Event of Default is continuing or the Facility Agent has reasonable grounds to believe that an Event of Default may exist and at other times if the Facility Agent has reasonable grounds for such request, permit representatives of the Facility Agent upon reasonable prior written notice to the Company to:
|
(i)
|
visit and inspect the properties of any member of the Bank Group during normal business hours;
|
(ii)
|
inspect its books and records other than records which the relevant member of the Bank Group is prohibited by law, regulation or contract from disclosing to the Facility Agent; and
|
(iii)
|
discuss with its principal officers and Auditors its business, assets, liabilities, financial position, results of operations and business prospects provided that (A) any such discussion with the Auditors shall only be on the basis of the audited financial statements of the Bank Group and any compliance certificates issued by the Auditors and (B) representatives of the Company shall be entitled to be present at any such discussion with the Auditors.
|
(c)
|
Any Obligor must promptly upon becoming aware of it notify the Facility Agent of:
|
(i)
|
any Reportable Event;
|
(ii)
|
the termination of or withdrawal from, or any circumstances reasonably likely to result in the termination of or withdrawal from, any Plan subject to Title IV of ERISA; and
|
(iii)
|
material non-compliance with any law or regulation relating to any Plan which would or is reasonably likely to have a Material Adverse Effect.
|
23.6
|
Authorisations
|
(a)
|
obtain or cause to be obtained, maintain and comply with the terms of:
|
(i)
|
every material consent, authorisation, licence or approval of, or filing or registration with or declaration to, governmental or public bodies or authorities or courts; and
|
(ii)
|
every material notarisation, filing, recording, registration or enrolment in any court or public office,
|
(b)
|
obtain or cause to be obtained every Necessary Authorisation and the Licences and ensure that (i) none of the Necessary Authorisations or Licences is revoked, cancelled, suspended, withdrawn, terminated, expires and is not renewed or otherwise ceases to be in full force and effect and (ii) no Necessary Authorisation or Licence is modified and no member of the Bank Group commits any breach of the terms or conditions of any Necessary Authorisation or Licence which, in each case, would or is reasonably likely to have a Material Adverse Effect.
|
23.7
|
Pari passu ranking
|
23.8
|
Negative pledge
|
(a)
|
Each Obligor will not permit (and the Company shall procure that no member of the Bank Group shall permit) any Security Interest (other than the Permitted Security Interests) by any member of the Bank Group to subsist, arise or be
|
(b)
|
“
Permitted Security Interest
” means any Security Interest:
|
(i)
|
arising hereunder or under any Finance Document or in respect of liabilities under any Hedging Agreements entered into in connection with the High Yield Notes or High Yield Refinancing;
|
(ii)
|
which is an Existing Security Interest set out in Part 1 of Schedule 11 (
Existing Security Interests
) provided that the principal amount secured thereby may not be increased unless any Security Interest in respect of such increased amount would be permitted under another paragraph of this Clause 23.8 (
Negative pledge
);
|
(iii)
|
which arises by operation of Law or by a contract having a similar effect or under an escrow arrangement required by a trading counterparty of any member of the Bank Group and in each case arising or entered into the ordinary course of business of the relevant member of the Bank Group;
|
(iv)
|
which is created by any member of the Bank Group in substitution for any Existing Security Interest referred to in paragraph (ii) above, provided that the principal amount secured thereby may not be increased unless any Security Interest in respect of such increased amount would be permitted under another paragraph of this Clause 23.8 (
Negative pledge
);
|
(v)
|
which is a lien arising in the ordinary course of business by operation of law or by way of contract which secures indebtedness under any agreement for the supply of goods or services in respect of which payment is not deferred for more than 180 days (or 360 days if such deferral is in accordance with the terms pursuant to which the relevant goods were acquired or services were provided) after the relevant goods were or are to be acquired or the relevant services were or are to be supplied, or after the relevant invoice date;
|
(vi)
|
imposed by any taxation or governmental authority in respect of amounts which are being contested in good faith and not yet payable and for which adequate reserves have been set aside in the accounts of the member of the Bank Group in respect of the same in accordance with the Relevant Accounting Principles;
|
(vii)
|
which arises in respect of any right of set-off, netting arrangement, title transfer or title retention arrangements which:
|
(A)
|
arises in the ordinary course of business and/or by operation of law;
|
(B)
|
is entered into by any member of the Bank Group in the normal course of its banking arrangements for the purpose of netting debit and credit balances on bank accounts of members of the Bank Group operated on a net balance basis;
|
(C)
|
arises in respect of netting or set off arrangements contained in any Hedging Agreement or other contract permitted under Clause 23.25 (
Hedging
);
|
(D)
|
is entered into by any member of the Bank Group on terms which are generally no worse than the counterparty’s standard or usual terms and entered into in the ordinary course of business of the relevant member of the Bank Group;
|
(viii)
|
which is a retention of title arrangement with respect to customer premises equipment in favour of a supplier (or its Affiliate); provided that the title is only retained to individual items of customer premises equipment in respect of which the purchase price has not been paid in full;
|
(ix)
|
granted by a member of the Bank Group over its shareholding in any of its Subsidiaries which is not itself a member of the Bank Group;
|
(x)
|
arising from any Finance Leases, sale and leaseback arrangements or Vendor Financing Arrangements permitted to be incurred pursuant to Clause 23.13 (
Restrictions on Financial Indebtedness
);
|
(xi)
|
over or affecting any asset acquired by a member of the Bank Group after the date of this Agreement and subject to which such asset is acquired, if:
|
(A)
|
such Security Interest was not created in contemplation of the acquisition of such asset by a member of the Bank Group; and
|
(B)
|
the Financial Indebtedness secured thereby is Financial Indebtedness of, or is assumed by, the relevant acquiring member of the Bank Group, is Financial Indebtedness which at all times falls within Clauses 23.13(b)(xi) or 23.13(b)(xviii) (
Restrictions on Financial Indebtedness
) and the amount of Financial Indebtedness so secured is not increased at any time;
|
(xii)
|
over or affecting any asset of any company which becomes a member of the Bank Group after the date of this Agreement, where such Security Interest is created prior to the date on which such company becomes a member of the Bank Group, if:
|
(A)
|
such Security Interest was not created in contemplation of the acquisition of such company; and
|
(B)
|
to the extent not repaid by close of business on the date upon which such company became a member of the Bank Group, the Financial Indebtedness secured by such Security Interest at all times falls within Clause 23.13(b)(xi) or 23.13(b)(xviii) (
Restrictions on Financial Indebtedness
);
|
(xiii)
|
over any property or other assets to satisfy any pension plan contribution liabilities provided that the aggregate value of any such property or other assets, when taken together with the aggregate amount utilised under the basket in Clause 23.11(b)(xv) (
Disposals
), shall not exceed £100,000,000 at any time;
|
(xiv)
|
constituted by a rent deposit deed entered into on arm’s length commercial terms and in the ordinary course of business securing the obligations of a member of the Bank Group in relation to property leased to a member of the Bank Group;
|
(xv)
|
which is granted over the shares of, Indebtedness owed by or other interests held in, or over the assets (including, without limitation, present or future revenues), attributable to a Project Company, a Bank Group Excluded Subsidiary or a Permitted Joint Venture;
|
(xvi)
|
over cash deposited as security for the obligations of a member of the Bank Group in respect of a performance bond, guarantee, standby letter of credit or similar facility entered into in the ordinary course of business of the Bank Group;
|
(xvii)
|
in respect of any Permitted Transaction;
|
(xviii)
|
which is created by any member of the Bank Group in substitution for any Security Interest under any existing Security Document, provided that the principal amount secured thereby may not be increased unless any Security Interest in respect of such increased amount would be permitted under another paragraph of this Clause 23.8 (
Negative pledge
);
|
(xix)
|
securing any Financial Indebtedness on a
pari passu
or junior ranking basis with respect to any part of the Facilities, provided that:
|
(A)
|
the ratio of Senior Net Debt to Annualised EBITDA (giving effect to any such Financial Indebtedness and the use of proceeds thereof) would be equal to, or less than, 4.50:1.00 (rounded to the second decimal number), provided that this limitation shall not apply to any Financial Indebtedness the proceeds of which are used to refinance (1) the Facilities (including any Additional Facility), (2) any Senior Secured Notes or (3) any other Financial Indebtedness which is secured by assets that are subject to the Security; and
|
(B)
|
any such Financial Indebtedness ranking
pari passu
with the Facilities outstanding on the Signing Date or any Financial Indebtedness that would have ranked
pari passu
with (1) the Facilities outstanding on the Signing Date is subject to the Group Intercreditor Agreement and the HYD Intercreditor Agreement and (2) any such Financial Indebtedness which is secured on a junior ranking basis over assets subject to the Security, such junior ranking security shall be granted on terms where the rights of the relevant mortgagee, chargee or other beneficiary of such security in respect of any payment will be subordinated to the rights of the Relevant Finance Parties under an intercreditor agreement (providing for contractual subordination on terms comparable to the Loan Market Association’s form of intercreditor agreement at such time for mezzanine debt) and, in each case, the Relevant Finance Parties agree to execute such intercreditor agreement as soon as practicable following request from the Company; or
|
(xx)
|
created with the prior written consent of the Instructing Group;
|
(xxi)
|
arising under agreements entered into in the ordinary course of business relating to (A) network leases or (B) the leasing of (1) building; (2) cars; and (3) other operational equipment;
|
(xxii)
|
securing:
|
(A)
|
proceeds from the offering of any debt securities or other Financial Indebtedness (and accrued interest thereon) paid into escrow accounts with an independent escrow agent on the date of the applicable offering or incurrence pursuant to escrow arrangements that permit the release of amounts on deposit in such escrow accounts upon satisfaction of certain conditions or
|
(B)
|
cash set aside at the time of the incurrence of any Financial Indebtedness or government securities purchased with such cash, in either case, to the extent such cash or government securities prefund the payment of interest on such Financial Indebtedness and are held in escrow accounts or similar arrangement to be applied for such purpose;
|
(xxiii)
|
created to secure any Financial Indebtedness on a second lien ranking basis provided that:
|
(A)
|
(other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) the Total Net Debt to Annualised EBITDA ratio would not be greater than 5.50:1; and
|
(B)
|
such Financial Indebtedness is subject to intercreditor arrangements on terms satisfactory to the Facility Agent and the Security Trustee (in each case, acting reasonably) and, where the rights of the holders of such Financial Indebtedness will be contractually subordinated to the rights of the Lenders, on terms comparable to the intercreditor agreement precedent most recently entered into by an Affiliate of the Company prior to the incurrence of such Financial Indebtedness which provides for a second lien financing (as amended from time to time) with such adjustments and amendments as agreed between the Company, the Security Trustee and the Facility Agent (acting reasonably in each case);
|
(xxiv)
|
over cash deposits or other Security Interests constituting or for the purpose of securing Limited Recourse;
|
(xxv)
|
consisting of any right of set-off granted to any financial institution acting as a lockbox bank in connection with any asset securitisation programme or one or more receivables factoring transactions;
|
(xxvi)
|
for the purpose of perfecting the ownership interests of a purchaser of receivables and related assets pursuant to any asset securitisation programme or one or more receivables factoring transactions;
|
(xxvii)
|
on investments in Asset Securitisation Subsidiaries;
|
(xxviii)
|
arising in connection with other sales of receivables permitted under the this Agreement without recourse to any member of the Bank Group; and
|
(xxix)
|
securing Financial Indebtedness the principal amount of which (when aggregated with the principal amount of any other Financial Indebtedness which has the benefit of a Security Interest other than as permitted pursuant to paragraphs (b)(i) to (b)(xx) above) does not exceed the greater of (A) £300,000,000 (or its equivalent in other currencies) and (B) two per cent. of Total Assets:
|
(A)
|
which may be secured on assets not subject to the Security; or
|
(B)
|
which may be secured on a junior ranking basis over assets subject to the Security provided that such junior ranking security shall be granted on terms where the rights of the relevant mortgagee, chargee or other beneficiary of such security in respect of any payment will be subordinated to the rights of the Relevant Finance Parties under an intercreditor arrangement (providing for contractual subordination on terms comparable to the Loan Market Association’s form of intercreditor agreement at such time for mezzanine debt) and provided further that each of the Relevant Finance Parties agrees to execute such intercreditor agreement as soon as practicable following request from the Company.
|
23.9
|
Business
|
23.10
|
Compliance with laws
|
23.11
|
Disposals
|
(a)
|
Without the consent of the Instructing Group each Obligor will not and the Company will procure that no other member of the Bank Group will, sell, transfer, lend (subject to Clause 23.15 (
Loans and guarantees
)) or otherwise dispose of or cease to exercise direct control over (each a disposal) any part of its present or future undertaking, assets, rights or revenues whether by one or a series of transactions related or not (other than Permitted Disposals).
|
(b)
|
As used herein a “
Permitted Disposal
” means:
|
(i)
|
any payment required to be made under the Relevant Finance Documents;
|
(ii)
|
any Permitted Transaction;
|
(iii)
|
disposals (including, for the avoidance of doubt, the outsourcing of activities that support or are incidental to the Business) on arm’s length commercial terms in the ordinary course of business;
|
(iv)
|
the disposal of property or other assets on
bona fide
arm’s length commercial terms in the ordinary course of business in consideration for, or to the extent that contractual arrangements are in place within 12 months of such disposals and the Net Proceeds of that disposal are applied within 18 months after such disposal in the acquisition of, property or other assets of a similar nature and approximately equal value to be used in the Business;
|
(v)
|
disposals of assets on
bona fide
arm’s length commercial terms where such assets are obsolete or no longer required for the purposes of the Business;
|
(vi)
|
the application of cash in payments (or any disposals of Cash Equivalent Investments or Marketable Securities) which are not otherwise restricted by the terms of this Agreement and the Security Documents including, for the avoidance of doubt, Permitted Acquisitions and Permitted Payments;
|
(vii)
|
disposals (or the payment of management, consultancy or similar fees):
|
(A)
|
by an Obligor to another Obligor; or
|
(B)
|
from a member of the Bank Group which is not an Obligor, to any member of the Group; or
|
(C)
|
from an Obligor to another member of the Bank Group which is not an Obligor; or
|
(D)
|
by one member of the Bank Group to another member of the Bank Group provided that, if such assets subject to the disposal are subject to existing Security, the Company within 15 Business Days of such disposal is in compliance with the 80% Security Test as of the most recent prior Quarter Date after giving effect to the disposal;
|
(viii)
|
disposals of any interest in an Unrestricted Subsidiary;
|
(ix)
|
payment, transfer or other disposal of consideration for any Acquisition, merger or consolidation permitted by Clause 23.12 (
Acquisitions and mergers
);
|
(x)
|
disposals of cash or cash equivalents constituting any distribution, dividend, transfer, loan or other transaction permitted by Clause 23.14 (
Restricted Payments
);
|
(xi)
|
the grant of indefeasible rights of use or equivalent arrangements with respect to network capacity, communications, fibre capacity or conduit, in each case on arm’s length commercial terms or on terms that are fair and reasonable and in the best interests of the Bank Group;
|
(xii)
|
payment, transfer or other disposal between members of the Bank Group, constituting consideration or investment for or towards or in furtherance of any Acquisition, Permitted Acquisition, Permitted Joint Venture, merger or consolidation permitted by Clause 23.12 (
Acquisitions and mergers
);
|
(xiii)
|
disposals of any interest in real or heritable property by way of a lease or licence granted by a member of the Bank Group to another member of the Bank Group;
|
(xiv)
|
disposals of any assets pursuant to the implementation of an Asset Passthrough or of any funds received pursuant to the implementation of a Funding Passthrough;
|
(xv)
|
disposals of any property or other assets to satisfy any pension plan contribution liabilities;
|
(xvi)
|
disposals of any accounts receivable on arms’ length commercial terms pursuant to an asset securitisation programme or one or more receivables factoring transactions provided that:
|
(A)
|
such disposal is conducted on a non-recourse basis, except for recourse to:
|
(1)
|
the receivables which are the subject of such asset securitisation programme or receivables factoring transaction;
|
(2)
|
the debtor in respect of the Financial Indebtedness under that programme or transaction for the purpose of enforcing a security interest against it, so long as:
|
(I)
|
the recourse is limited to recoveries in respect of the receivables; and
|
(II)
|
the providers of the Financial Indebtedness under that programme or transaction do not have the right to take any steps towards its winding up or dissolution or the appointment of a liquidator, administrator, administrative receiver or similar officer (other than in respect of the receivables);
|
(3)
|
a member of the Wider Group to the extent of its shareholding or other interest in any Asset Securitisation Subsidiary; or
|
(4)
|
a member of the Wider Group under any form of assurance, undertaking or support, where recourse is limited to:
|
(I)
|
a claim for damages (not being liquidated damages or damages required to be calculated in a specified way) for breach of a warranty or undertaking;
|
(II)
|
a claim for breach of warranty relating to the receivables;
|
(III)
|
a claim for breach of undertaking relating to the management and/or collection of the receivables; or
|
(IV)
|
a claim for breach of representations, warranties, undertakings, guarantees of performance (excluding any recourse with respect to the collectability of any receivables or assets related to such receivables) and indemnities entered into
|
(B)
|
the aggregate principal amount of all such securitisations or factoring transactions conducted in reliance on this paragraph (xvi) does not exceed the greater of:
|
(1)
|
£330,000,000 (or its equivalent in other currencies) at any time; and
|
(2)
|
three per cent. of Total Assets;
|
(xvii)
|
disposals of any shares or other interests in any Project Company, Bank Group Excluded Subsidiary or Joint Venture or the assignment of any Financial Indebtedness owed to a member of the Bank Group by a Project Company, Bank Group Excluded Subsidiary or Joint Venture;
|
(xviii)
|
disposals of accounts receivable which have remained due and owing from a third party for a period of more than 90 days and in respect of which the relevant member of the Bank Group has diligently pursued payment in the normal course of its business and where such disposal is on non-recourse terms to such member of the Bank Group;
|
(xix)
|
disposals of assets subject to finance or capital leases pursuant to the exercise of an option by the lessee under such finance or capital leases;
|
(xx)
|
disposals of assets in exchange for the receipt of assets of a similar or comparable value provided that:
|
(A)
|
to the extent that the assets being disposed of are subject to existing Security, the assets received following such exchange will be subject to the existing Security Documents, or will be made subject to Security (in form and substance substantially similar to the existing Security or otherwise in such form and substance as may reasonably be required by the Facility Agent) within 10 Business Days of such disposal; and
|
(B)
|
where the aggregate net book value of all assets being exchanged in reliance on this paragraph (xx) exceeds £10,000,000 (or its
|
(xxi)
|
disposals constituting the surrender of tax losses by any member of the Bank Group:
|
(A)
|
to any other member of the Bank Group;
|
(B)
|
to any other member of the Wider Group, where the surrendering company receives fair market value for such tax losses from the relevant recipient; or
|
(C)
|
in order to eliminate, satisfy or discharge any tax liability of a former member of the Wider Group which has been disposed of pursuant to a disposal permitted by the terms of this Agreement, to the extent that a member of the Bank Group would have a liability (in the form of an indemnification obligation or otherwise) to one or more persons in relation to such tax liability if not so eliminated, satisfied or discharged;
|
(xxii)
|
disposals of assets to and sharing assets with any person who is providing services related to such assets, the provision of which have been or are to be outsourced by the Company or any member of the Bank Group to such person;
|
(xxiii)
|
disposals of assets pursuant to sale and leaseback transactions (regardless of whether any such lease resulting from such a transaction constitutes an operating or a finance lease) where the aggregate fair market value of any assets disposed of in reliance on this paragraph (xxiii) does not exceed the greater of:
|
(A)
|
£150,000,000 (or its equivalent in other currencies); and
|
(B)
|
1.5 per cent. of Total Assets,
|
(xxiv)
|
subject to the requirements of Clause 23.25 (
Hedging
), disposals of any Hedging Agreements;
|
(xxv)
|
disposals of non-core assets acquired in connection with a transaction permitted under Clause 23.12 (
Acquisitions and mergers
);
|
(xxvi)
|
any disposal of all or part of the Virgin Media business division pursuant to a Business Division Transaction;
|
(xxvii)
|
any disposals constituted by licences of intellectual property rights permitted by Clause 23.17 (
Intellectual Property Rights
);
|
(xxviii)
|
any disposal of assets made pursuant to the establishment of a Permitted Joint Venture or any disposal of assets to a Permitted Joint Venture;
|
(xxix)
|
any disposal made in relation to a compulsory purchase order or any other order of any agency of state, authority or other regulatory body or any applicable law or regulation not exceeding £25,000,000 (or its equivalent in other currencies) in any financial year;
|
(xxx)
|
any disposal by any member of the Bank Group of customer premises equipment to a customer;
|
(xxxi)
|
any Regulatory Authority Disposal;
|
(xxxii)
|
any disposal of real property if the fair market value in any financial year does not exceed the greater of £50,000,000 and three per cent. of Total Assets (with any unused amounts in any financial year being carried over to the next succeeding financial year subject to the maximum of the greater of £50,000,000 and three per cent. of Total Assets of carried over amounts for any financial year);
|
(xxxiii)
|
any disposal of assets where the aggregate fair market value of the asset disposed of in any financial year does not exceed the greater of £50,000,000 and one per cent. of Total Assets in any financial year;
|
(xxxiv)
|
disposals of assets on arms’ length commercial terms where the cash proceeds of such disposal are reinvested within 12 months of the date of the relevant disposal in the purchase of replacement assets by a member of the Bank Group (or within 18 months of the date of the relevant disposal if the proceeds are, within 12 months of the date of the relevant disposal, contractually committed to be so applied) provided that where the relevant member of the Bank Group that has made the disposal is an Obligor, such replacement assets are either subject to existing Security Documents granted by the relevant member of the Bank Group that has acquired the
|
(xxxv)
|
(in addition to those described in paragraphs (i) to (xxxiv) above) a disposal of any person or asset the Annualised EBITDA of or attributable to which does not exceed the Remaining Percentage of the Annualised EBITDA of the Bank Group for the Latest Ratio Period, provided that:
|
(A)
|
no Default has occurred and is continuing or would occur as a result of such disposal;
|
(B)
|
where required, a prepayment is made in accordance with Clause 12.2(a) (
Mandatory prepayment from disposal proceeds
) in respect of such disposal; and
|
(C)
|
the Company delivers to the Facility Agent a certificate signed by an authorised signatory of the Company which certifies that, if:
|
(1)
|
the Senior Net Debt to Annualised EBITDA ratio was calculated for the Latest Ratio Period but adjusting the:
|
(2)
|
the Total Net Debt to Annualised EBITDA ratio was calculated for the Latest Ratio Period but adjusting the:
|
(xxxvi)
|
a disposal of any person or asset otherwise pursuant to paragraph (xxxv) provided that:
|
(A)
|
if, at the time of such disposal, any member of the Bank Group has contractually committed or agreed to a future Acquisition and such an Acquisition occurs within 12 months (or less) of the disposal;
|
(B)
|
the Remaining Percentage (as defined in paragraph (c) below) would not be exceeded if the aggregate percentage value of the contemplated Acquisition is added to the calculation and tested at the time of the disposal on a pro forma basis (giving effect to the Annualised EBITDA (as defined in paragraph (d) below) of the Target based on then available historical financial information) and on an actual basis at the completion of the Acquisition (and for these purposes the proviso in paragraph (c) below shall be disapplied so that the percentage of the Annualised EBITDA of the Bank Group represented by the Annualised EBITDA of the relevant disposal could be more than the Remaining Percentage immediately prior to such disposal provided that the Remaining Percentage would not be exceeded
|
(C)
|
for the purpose of the certificate required by paragraph (xxxv)(C), the financial ratios shall be calculated giving pro forma effect to such Acquisition (based on the then available historical financial information of the Target and including the Annualised EBITDA of the Target and any Financial Indebtedness expected to be incurred by the Bank Group to finance such Acquisition) (and any such amendment, waiver or other modification contemplated by this paragraph (C) may apply to all such disposals and future Acquisitions or only to specified disposals and Acquisitions).
|
(c)
|
The “
Remaining Percentag
e” is:
|
(i)
|
17.5 per cent.;
|
(ii)
|
less the aggregate percentage value of all previous disposals made after the Signing Date;
|
(iii)
|
and plus the aggregate percentage value of all Reinvestments made,
|
(d)
|
For the purposes of paragraphs (b)(xxxv), (b)(xxxvi) and (c) above:
|
(a)
|
in relation to a disposal, the percentage of the Annualised EBITDA of the Bank Group for what was the Latest Ratio Period at the time of the disposal which is represented by the Annualised EBITDA of the person or asset disposed of (the “
EBITDA Percentage
”), after deducting a percentage equal to the EBITDA Percentage multiplied by the Proportion Repaid; and
|
(b)
|
in relation to a Reinvestment, the percentage of the Annualised EBITDA of the Bank Group for what was the Latest Ratio Period at the time of the Reinvestment (but taking into account each disposal made by the Bank Group after the last day of that Latest Ratio Period and prior to the date of the relevant Reinvestment) which is represented by the Annualised EBITDA of the person or asset acquired multiplied by the Proportion Reinvested,
|
(e)
|
In the event that a transaction (or a portion thereof) meets the criteria of a Permitted Disposal and also meets the criteria of a Permitted Payment, the Company, in its sole discretion, will be entitled to divide and classify such transaction (or a portion thereof) as a disposal permitted under Clause 23.11 (
Disposals
) and/or a Restricted Payment under Clause 23.14(c) (
Restricted Payments
).
|
23.12
|
Acquisitions and mergers
|
(a)
|
No Obligor will, and the Company will procure that no other member of the Bank Group will, make any Acquisition, other than:
|
(i)
|
any Acquisition approved in writing by the Instructing Group;
|
(ii)
|
any Permitted Acquisition;
|
(iii)
|
any Permitted Transaction;
|
(iv)
|
any Permitted Joint Venture;
|
(v)
|
any Acquisition from any person which is a member of the Bank Group or subscription of an interest in the share capital (or equivalent) in any person which is a member of the Bank Group; or
|
(vi)
|
in connection with a merger or consolidation permitted by paragraph (b) below or by Clause 23.31 (
Internal Reorganisations
),
|
(A)
|
the acquired entity must be a Subsidiary (directly or indirectly) of the Company; or
|
(B)
|
the relevant member of the Bank Group (or Virgin Media Communications, as applicable) must provide security over all of the shares acquired by it in the acquired entity on terms acceptable to the Facility Agent (acting reasonably), together with such corporate authorisations and legal opinions that may reasonably required by the Facility Agent in connection with the entry into, validity and enforceability of such security documentation.
|
(b)
|
Each Obligor will not merge or consolidate with any other company or person and will procure that no member of the Bank Group will merge or consolidate with any other company or person save for:
|
(i)
|
any Permitted Transaction;
|
(ii)
|
Acquisitions permitted by paragraph (a) above and disposals permitted by Clause 23.11 (
Disposals
); or
|
(iii)
|
with the prior written consent of the Facility Agent (acting on the instructions of the Instructing Group); or
|
(iv)
|
mergers between any member of the Bank Group with any or all of the other members of the Bank Group or an Unrestricted Subsidiary (“
Original Entities
”), into one or more entities (each a “
Merged Entity
”) provided that:
|
(A)
|
reasonable details of the proposed merger in order to demonstrate satisfaction with subparagraphs (C) to (G) below are provided to the Facility Agent within 30 days after the date on which the merger is entered into;
|
(B)
|
if the proposed merger is between a member of the Bank Group and an Unrestricted Subsidiary, the Company has delivered to the Facility Agent within 30 days after the date on which the merger is entered into, a certificate signed by an authorised signatory which demonstrates that the ratio of Total Net Debt to Annualised EBITDA will be equal to, or less than, 5.50:1;
|
(C)
|
such Merged Entity will be a member of the Bank Group and will be liable for the obligations of the relevant Original Entities (including the obligations under this Agreement and the Security Documents), which obligations remain unaffected by the merger, and entitled to the benefit of all rights of such Original Entities;
|
(D)
|
(if all or any part of the share capital of any of the relevant Original Entities was charged pursuant to a Security Document) the equivalent part of the issued share capital of such Merged Entity is charged pursuant to a Security Document on terms of at least an equivalent nature and equivalent ranking as any Security Document relating to the shares in each relevant Original Entity within 60 days of the merger;
|
(E)
|
such Merged Entity has entered into Security Documents (if applicable) within 60 days of the merger which provide security over the same assets of at least an equivalent nature and ranking to the security provided by the relevant Original Entities pursuant to any Security Documents entered into by them;
|
(F)
|
any possibility of the Security Documents referred to in subparagraphs (D) or (E) above being challenged or set aside is not materially greater than any such possibility in relation to the
|
(G)
|
all the property and other assets of the relevant Original Entities are vested in the Merged Entity and the Merged Entity has assumed all the rights and obligations of the relevant Original Entities under any, material Necessary Authorisations and Licences and other licences or registrations (to the extent reasonably necessary for the business of the relevant Original Entities) granted in favour of the Original Entities under Telecommunications and Cable Laws and/or all such rights and obligations have been transferred to the Merged Entity and/or the relevant Necessary Authorisations and Licences and other licences or registrations (to the extent reasonably necessary for the business of the relevant Original Entities) granted in favour of the Original Entities under Telecommunications and Cable Laws have been reissued to the Merged Entity,
|
(1)
|
both of which are not Obligors; and
|
(2)
|
neither one of which is party to a Security Document, neither one of whose share capital is charged pursuant to a Security Document and neither one of whom owes any receivables to another member of the Bank Group which are pledged pursuant to a Security Document; or
|
(v)
|
in the event that the relevant member of the Bank Group liquidates or dissolves in accordance with the provisions of Clause 23.31 (
Internal Reorganisations
).
|
23.13
|
Restrictions on Financial Indebtedness
|
(a)
|
Each Obligor will not, and the Company will procure that no other member of the Bank Group will, create, incur or otherwise permit to be outstanding any Financial Indebtedness (other than Permitted Financial Indebtedness).
|
(b)
|
As used herein, “
Permitted Financial Indebtedness
” means, without duplication:
|
(i)
|
any Financial Indebtedness arising hereunder or under the Security Documents or the Relevant Finance Documents;
|
(ii)
|
until the first Utilisation Date, any Financial Indebtedness arising under the Existing Senior Credit Facilities Agreement;
|
(iii)
|
any Existing Financial Indebtedness;
|
(iv)
|
any Financial Indebtedness or guarantees permitted pursuant to Clause 23.15 (
Loans and guarantees
);
|
(v)
|
any Financial Indebtedness of any member of the Bank Group arising as a result of the issue by it or a financial institution of a surety or performance bond in relation to the performance by such member of the Bank Group or its obligations under contracts entered into in the ordinary course of its business (other than for the purpose of raising finance);
|
(vi)
|
any Financial Indebtedness approved in writing by the Facility Agent (acting on the instructions of the Instructing Group);
|
(vii)
|
any Financial Indebtedness incurred in connection with the Hedging Agreements and any other hedging arrangements permitted by Clause 23.25 (
Hedging
);
|
(viii)
|
any deposits or prepayments constituting Financial Indebtedness received by any member of the Bank Group from a customer or subscriber for its services;
|
(ix)
|
any Financial Indebtedness owing by any member of the Bank Group being Management Fees or management, consultancy or similar fees payable to another member of the Bank Group in respect of which payment has been deferred;
|
(x)
|
any Financial Indebtedness being Permitted Payments in respect of which payment has been deferred;
|
(xi)
|
any Financial Indebtedness of a company which is acquired by a member of the Bank Group after the date hereof as an acquisition permitted by Clause 23.12 (
Acquisitions and mergers
) where such Financial Indebtedness existed at the date of completion of such Permitted Acquisition provided that the amount of such Financial Indebtedness is not increased beyond the amount in existence at the date of completion of the acquisition (subject to the accrual of interest);
|
(xii)
|
any Financial Indebtedness of any member of the Bank Group, in respect of which the person or persons to whom such Financial Indebtedness is or may be owed has or have no recourse whatever to any member of the
|
(A)
|
the extent of such recourse to such member is limited solely to the amount of any recoveries made on any such enforcement;
|
(B)
|
such person or persons are not entitled, pursuant to the terms of any agreement evidencing any right or claim arising out of or in connection with such Financial Indebtedness, to commence proceedings for the winding up, dissolution or administration of any member of the Bank Group (or proceedings having an equivalent effect) or to appoint or procure the appointment of any receiver, trustee or similar person or officer in respect of any member of the Bank Group or any of its assets until after the Commitments have been reduced to zero and all amounts outstanding under the Relevant Finance Documents have been repaid or paid in full; and
|
(C)
|
the aggregate outstanding amount of all such Financial Indebtedness of all members of the Bank Group does not exceed £100,000,000 (or its equivalent in other currencies);
|
(xiii)
|
any Financial Indebtedness of any member of the Bank Group (other than any Obligor) constituting Financial Indebtedness to all the holders (or their Associated Companies) of the share capital of any such member of the Bank Group on a basis that is substantially proportionate to their interests in such share capital (with any disproportionately large interest received by any member of the Bank Group or any disproportionately small interest received by any person other than a member of the Bank Group, in each case relative to its interests in such share capital, being ignored for this purpose), provided such Financial Indebtedness does not bear interest (other than by way of addition to its principal amount on a proportionate basis as described above) and is made on terms that repayment or pre-payment of such Financial Indebtedness shall only be made to each such holder (A) in proportion to their respective interests in such share capital (ignoring any disproportionately large interest held by any member of the Bank Group or any disproportionately small interest received by any person other than a member of the Bank Group, in each case relative to its interests in such share capital, for this purpose) and (B) only on and in connection with the liquidation or winding up (or equivalent) of such member of the Bank Group;
|
(xiv)
|
any Financial Indebtedness arising as a result of any cash pooling arrangements in the ordinary course of the Bank Group’s banking business to which any member of the Bank Group is a party;
|
(xv)
|
Financial Indebtedness arising in respect of:
|
(A)
|
the existing subordinated unsecured guarantees given by the Company and Intermediate Holdco in respect of the Existing High Yield Notes;
|
(B)
|
any subordinated unsecured guarantee granted by the Company and/or Intermediate Holdco in respect of any Additional High Yield Notes in accordance with paragraph (e) of the definition of Additional High Yield Notes, provided that no Default or Event of Default is outstanding or occurs as a result of the issuance of such Additional High Yield Notes;
|
(C)
|
any subordinated unsecured guarantee granted by the Company and/or Intermediate Holdco in respect of any High Yield Refinancing in accordance with paragraph (c) of the definition of High Yield Refinancing, provided that no Default or Event of Default is outstanding or occurs as a result of such High Yield Refinancing; and
|
(D)
|
any Senior Secured Notes and any guarantee in respect of any Senior Secured Notes given by any member of the Bank Group that is an Obligor;
|
(xvi)
|
Financial Indebtedness arising in relation to either an Asset Passthrough or a Funding Passthrough;
|
(xvii)
|
Financial Indebtedness arising in respect of any guarantee given by the Company or Intermediate Holdco in respect of the relevant borrower’s obligations under any Parent Debt, provided that any such guarantee is given on a subordinated unsecured basis and is subject to the terms of the HYD Intercreditor Agreement, the Group Intercreditor Agreement or any other applicable intercreditor agreement in form satisfactory to the Facility Agent and further provided that no Default or Event of Default is outstanding or occurs as a result of such Parent Debt being raised or issued;
|
(xviii)
|
Financial Indebtedness arising under (A) Finance Leases (B) sale and leaseback arrangements or (C) Vendor Financing Arrangements, to the extent that such Finance Leases, arrangements and/or Vendor Financing
|
(xix)
|
Financial Indebtedness relating to deferral of PAYE taxes with the agreement of H.M. Revenue & Customs by any member of the Bank Group;
|
(xx)
|
Financial Indebtedness arising in respect of any performance bond, guarantee, standby letter of credit or similar facility entered into by any member of the Bank Group to the extent that cash is deposited as security for the obligations of such member of the Bank Group thereunder;
|
(xxi)
|
Financial Indebtedness of any Asset Securitisation Subsidiary incurred solely to finance any asset securitisation programme or programmes or one or more receivables factoring transactions otherwise permitted by Clause 23.11(b)(xvi) (
Disposals
);
|
(xxii)
|
Financial Indebtedness arising under tax-related financings designated in good faith as such by prior written notice from the Company to the Facility Agent, provided that the aggregate principal amount of such Financial Indebtedness outstanding at any time does not exceed £500,000,000;
|
(xxiii)
|
Financial Indebtedness which constitutes Subordinated Funding provided that each Obligor that is a debtor in respect of Subordinated Funding shall (and the Company shall procure that each member of the Bank Group that is a debtor in respect of Subordinated Funding shall) procure that the relevant creditor of such Subordinated Funding, to the extent not already a party at the relevant time, accedes to the Group Intercreditor Agreement and the HYD Intercreditor Agreement, as
|
(xxiv)
|
Financial Indebtedness of any Obligor, provided that the ratios (after giving effect to the incurrence of any such Financial Indebtedness pursuant to this paragraph (xxiv) and the ultimate use of proceeds thereof and giving pro forma effect to any movement of cash out of the Bank Group since such date pursuant to any Permitted Payments) on the Quarter Date prior to any such incurrence (i) would not exceed a Senior Net Debt to Annualised EBITDA ratio of 4.25:1 and (ii) would not exceed a Total Net Debt to Annualised EBITDA ratio of 5.50:1 and, provided further that such Financial Indebtedness is subject to the terms of the HYD Intercreditor Agreement and the Group Intercreditor Agreement, or a Supplemental HYD Intercreditor Agreement as applicable; and
|
(xxv)
|
any Financial Indebtedness constituting a Permitted Transaction;
|
(xxvi)
|
any Financial Indebtedness reasonably necessary to effect any UPC Ireland Share Acquisition;
|
(xxvii)
|
any Financial Indebtedness which is incurred on a second lien ranking basis provided that:
|
(A)
|
(other than in the case of a refinancing of other secured Financial Indebtedness in the same or a lesser principal amount) the Total Net Debt to Annualised EBITDA ratio would not be greater than 5.50:1; and
|
(B)
|
such Financial Indebtedness is subject to intercreditor arrangements on terms satisfactory to the Company, the Facility Agent and the Security Trustee (in each case, acting reasonably) and, where the rights of the holders of such Financial Indebtedness will be contractually subordinated to the rights of the Lenders, on terms comparable to the intercreditor agreement precedent most recently entered into by an Affiliate of the Company prior to the incurrence of such Financial Indebtedness which provides for a second lien financing (as amended from time to time) with such adjustments and amendments as agreed between the Company, the Security Trustee and the Facility Agent (acting reasonably in each case);
|
(xxviii)
|
any other Financial Indebtedness in addition to the Financial Indebtedness falling within paragraphs (i) to (xxvii) above or as otherwise permitted
|
(A)
|
£330,000,000 in aggregate (or its equivalent); and
|
(B)
|
three per cent. of Total Assets,
|
(c)
|
In the event that Financial Indebtedness meets the criteria of more than one of the types of Permitted Financial Indebtedness described in Clause 23.13(b) (
Restrictions on Financial Indebtedness
), the Company, in its sole discretion, shall classify such item of Financial Indebtedness on the date of its incurrence and shall only be required to include the amount and type of such Financial Indebtedness in one of such paragraphs and will be permitted on the date of such incurrence to divide and classify an item of such Financial Indebtedness in more than one of the types of Financial Indebtedness described in such paragraphs, and, from time to time, may reclassify all or a portion of such Financial Indebtedness, in any manner that complies with this covenant.
|
23.14
|
Restricted Payments
|
(a)
|
Each Obligor will not, and the Company will procure that no member of the Bank Group will, make any Restricted Payments other than Permitted Payments.
|
(b)
|
As used herein, a “
Restricted Payment
” means, in each case whether in cash, securities, property or otherwise:
|
(i)
|
any direct or indirect distribution, dividend or other payment on account of any class of its share capital or capital stock or other securities;
|
(ii)
|
any payment of principal of, or interest on, any loan;
|
(iii)
|
any transfer of assets, loan or other payment; or
|
(iv)
|
any transfer of tax losses (provided that the amount of such tax losses shall be deemed reduced by any payment received by a member of the Bank Group from any Restricted Person for such tax losses),
|
(c)
|
As used herein, a “
Permitted Payment
” means any distribution, dividend, transfer of assets, loan or other payment:
|
(i)
|
in respect of a Permitted Transaction, a Permitted Acquisition or a Permitted Disposal;
|
(ii)
|
by way of a payment in connection with any earn out;
|
(iii)
|
in relation to any tax losses received by any member of the Bank Group from any member of the Wider Group that is not a member of the Bank Group provided that such payments shall only be made in relation to such tax losses in an amount equal to the amount of tax that would have otherwise been required to be paid by any member of the Bank Group if those tax losses were not so received and such payment shall only be made in the tax year in which such losses are utilised by any member of the Bank Group;
|
(iv)
|
to fund the purchase of any management equity which is subsequently transferred to other or new management (together with the purchase or repayment of any related loans) and/or to make other compensation payments to departing management;
|
(v)
|
required in connection with any UPC Ireland Share Acquisition;
|
(vi)
|
to any Restricted Person in relation to transactions carried out on
bona fide
arm’s length commercial terms in the ordinary course of business or on terms which are fair and reasonable and in the best interest of the Bank Group;
|
(vii)
|
by way of payment of Management Fees (A) which are paid on
bona fide
arm’s length terms in the ordinary course of business to a Restricted Person or (B) of up to the greater of £15,000,000 and 0.5 per cent. of Total Assets in any financial year provided that, at the time of payment, no Default is outstanding or would occur as a result of such payment;
|
(viii)
|
by way of transfer of tax losses or payment of principal or interest on Subordinated Funding or by way of loan, distributions, dividends, repayment of a loan, redemption of loan stock or other payments paid by the Company or any Permitted Affiliate Parent in respect of its share capital provided that:
|
(A)
|
the ratio of Senior Net Debt to Annualised EBITDA is 4.00:1 or less prior to such transfer of tax losses or the making of the relevant payment and will be 4.00:1 or less after such transfer of tax losses or the relevant payment has been made and after giving effect to the transactions, if any, to be completed using the proceeds of such payment; and
|
(B)
|
no Default has occurred and is continuing or would occur as a result of such payment;
|
(ix)
|
by way of payment to any Restricted Person of consideration for an acquisition, merger or consolidation permitted by Clause 23.12 (
Acquisitions and mergers
);
|
(x)
|
to the extent required for the purpose of making payments to:
|
(A)
|
the indenture trustee for the Existing High Yield Notes in respect of High Yield Trustee Amounts (as such term is defined in the HYD Intercreditor Agreement);
|
(B)
|
for the purpose of making payments in respect of any similar amounts to the indenture trustee in respect of any High Yield Refinancing or any Additional High Yield Notes; or
|
(C)
|
for the purpose of making payments in respect of any similar amounts to the indenture trustee in respect of any Senior Secured Notes issued by the Parent or a SSN Finance Subsidiary of the Parent;
|
(xi)
|
at any time after the occurrence of an Event of Default, to the extent required to fund Permitted Payments not otherwise prohibited by the HYD Intercreditor Agreement (including clause 4.2 (
Suspension of Permitted Payments prior to the Senior Discharge Date
) thereof), the Group Intercreditor Agreement or a Supplemental HYD Intercreditor Agreement;
|
(xii)
|
to the extent such distribution, dividend, transfer of assets, loan or other payment is in respect of a nominal amount;
|
(xiii)
|
for payment of any dividend, payment, loan or other distribution, or the repayment of a loan, or the redemption of loan stock or redeemable equity, in each case, which is required in order to facilitate the making of payments by any member of the Bank Group (or, for the purposes of paragraph (E) below, Virgin Media Inc.) and to the extent required:
|
(A)
|
by the terms of the Relevant Finance Documents;
|
(B)
|
by the terms of the Senior Secured Notes Documents;
|
(C)
|
by the terms of any Parent Debt (or, in each case, any guarantee of the obligations thereunder);
|
(D)
|
by the terms of any Hedging Agreement to the extent such payment is not prohibited by the Group Intercreditor Agreement;
|
(E)
|
by the terms of the Convertible Senior Notes, but only to the extent necessary to service scheduled interest payments thereunder, or
|
(F)
|
for the purposes of implementing any Content Transaction or Business Division Transaction;
|
(xiv)
|
made directly or by means of discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a person or entity that is not a member of the Bank Group in connection with, an asset securitisation programme or receivables factoring transaction otherwise permitted by Clause 23.11(b)(xvi) (
Disposals
);
|
(xv)
|
made pursuant to and in accordance with the Tax Cooperation Agreement, provided that a copy of the certification or filings referred to in Clause 5 (
Documentary Credits
) of the Tax Cooperation Agreement, as the case may be, shall have been provided to the Facility Agent not less than five Business Days before such payment is to be made and provided always that immediately prior to and immediately after such payment, (i) the Senior Net Debt to Annualised EBITDA ratio does not exceed 4.25:1 and (ii) the Total Net Debt to Annualised EBITDA ratio does not exceed 5.50:1, in each case, after giving effect to such payment;
|
(xvi)
|
or other distribution, or the repayment of a loan, or the redemption of loan stock or redeemable equity made pursuant to an Asset Passthrough or a Funding Passthrough, in each case, funded solely from cash generated by entities outside of the Bank Group;
|
(xvii)
|
or other distribution, or the repayment of a loan, or the redemption of loan stock or redeemable equity made to any member of the Wider Group (other than a member of the Bank Group), provided that:
|
(A)
|
an amount equal to such payment is reinvested by such member of the Wider Group (other than a member of the Bank Group) into a member of the Bank Group within three days of receipt thereof;
|
(B)
|
the aggregate principal amount of such payments and reinvested amounts at any one time does not exceed an amount equal to £300,000,000; and
|
(C)
|
to the extent any such payments are made in cash, any re-invested amounts are also made in cash provided that any such re-invested
|
(xviii)
|
in an amount of up to the greater of £200,000,000 and two per cent. of Total Assets from the cash proceeds of a Content Transaction provided always that no Event of Default has occurred or is continuing or would result following such payment;
|
(xix)
|
in an amount to enable any Holding Company of a member of the Bank Group to pay taxes that are formally due by such Holding Company but which are allocable to (A) the Bank Group and are due by such Holding Company as a result of the Bank Group being included in a fiscal unity (for corporate income and/or VAT purposes) with such Holding Company or (B) acting as a holding and/or financing company of the Bank Group;
|
(xx)
|
by way of payment to the Parent and any Permitted Affiliate Holdco of any amounts outstanding in relation to Subordinated Funding the proceeds of which are used by such person in connection with the refinancing of Parent Debt provided that concurrently with such payment such person advances directly or indirectly new Subordinated Funding to an Obligor in an amount equal to or greater than the outstanding amount of the Subordinated Funding discharged;
|
(xxi)
|
contemplated by a Regulatory Authority Disposal;
|
(xxii)
|
by way of payment to any direct or indirect shareholder of the Parent or any direct or indirect shareholder of any Permitted Affiliate Parent for all of its out-of-pocket expenses incurred in connection with its direct or indirect investment in the Parent or any Permitted Affiliate Parent and any of their Subsidiaries;
|
(xxiii)
|
to fund the payment of Holding Company Expenses;
|
(xxiv)
|
for financial advisory, financing, underwriting or placement services or in respect of other investment banking activities, including without limitation in connection with acquisitions or divestitures, which payments are approved by a majority of the members of the board of directors of Holdco or any Permitted Affiliate Holdco;
|
(xxv)
|
made with the prior consent of the Instructing Group;
|
(xxvi)
|
in an amount of up to the Revolving Facility Excluded Amount provided that:
|
(A)
|
no breach of this Clause 23.14 (
Restricted Payments
) shall occur as a result of a decrease in Annualised EBITDA after any such distribution, dividend, transfer of assets, loan or other payment has been made; and
|
(B)
|
if an amount equal to the Revolving Facility Excluded Amount in respect of any prior Ratio Period has been the subject of a distribution, dividend, transfer of assets, loan or other payment under this paragraph (xxvi), no further distribution, dividend, transfer of assets, loan or other payment may be made under this paragraph (xxvi) until there is an increase in Annualised EBITDA in respect of any subsequent Ratio Period (the “
Incremental EBITDA Amount
”) such that it is above the level of Annualised EBITDA at the time when the most recent distribution, dividend, transfer of assets, loan or other payment was made under this paragraph (xxvi), in which case an amount equal to 0.25 multiplied by the Incremental EBITDA Amount for such Ratio Period may be the subject of a distribution, dividend, transfer of assets loan or other payment under this paragraph (xxvi) provided that if at any time after a Permitted Payment is made under paragraph (xxvi) the Revolving Facility is prepaid or repaid in full, a distribution, dividend, transfer of assets, loan or other payment may be made under this paragraph (xxvi) in an amount equal to the Revolving Facility Excluded Amount at any time after the date of such repayment and notwithstanding any further Revolving Facility Utilisation is made (including by way of Rollover Advance at the time of such repayment); or
|
(xxvii)
|
any other distribution, dividend, transfer of assets, loan, other payment or transfer of tax losses not falling within paragraphs (i) to (xxvi) above and not exceeding at any time, in an aggregate amount, more than the greater of:
|
(A)
|
£250,000,000 in aggregate (or its equivalent); and
|
(B)
|
three per cent. of Total Assets.
|
(d)
|
In the event that a Permitted Payment meets the criteria of more than one of the categories described in paragraphs (c)(i) to (c)(xxvii), the Company will be entitled to classify such Permitted Payment (or portion thereof) on the date of its payment or later reclassify such Permitted Payment (or portion thereof) in any manner that complies with the covenant in this Clause 23.14(d) (
Restricted Payments
).
|
(e)
|
The restriction contained in paragraph (a) on the payment by any member of the Bank Group of Management Fees shall cease to apply during such period as the applicable ratio of
Senior Net Debt to Annualised EBITDA is 4.00:1 (or less), provided that no Management Fees may be paid by any member of the Bank Group at any time after a Relevant Event has occurred or if a Relevant Event would result from such payment.
|
23.15
|
Loans and guarantees
|
(a)
|
loans from a member of the Bank Group to another member of the Bank Group or loan notes issued by one member of the Bank Group and held by another member of the Bank Group;
|
(b)
|
any credit given by a member of the Bank Group to another member of the Bank Group which arises by reason of cash pooling, set off or other cash management arrangements of the Bank Group or other credits relating to services performed or allocation of expenses;
|
(c)
|
as permitted by Clause 23.13 (
Restrictions on Financial Indebtedness
);
|
(d)
|
normal trade credit in the ordinary course of business;
|
(e)
|
guarantees given:
|
(i)
|
under the Finance Documents;
|
(ii)
|
by any Obligor in respect of the liabilities of another Obligor;
|
(iii)
|
by a member of the Bank Group in respect of the liabilities of an Obligor; or
|
(iv)
|
by a member of the Bank Group (which is not an Obligor) in respect of the liabilities of another member of the Bank Group (which is not an Obligor);
|
(v)
|
by an Obligor in respect of the liabilities of any other member of the Bank Group to the extent that such liabilities could have been incurred by such Obligor directly without breaching this Agreement; or
|
(vi)
|
by an Obligor in respect of the liabilities of any other member of the Bank Group which is not an Obligor provided that that other member of the
|
(f)
|
to the extent that the same constitute Permitted Payments or a Permitted Disposal (not being a Permitted Disposal of cash or cash equivalents);
|
(g)
|
loans, the granting of credit, guarantees and other transactions having the effect of lending money (each a “
Lending Transaction
”) from a member of the Bank Group, in connection with an acquisition by that member which is permitted by Clause 23.12 (
Acquisitions and mergers
), to the relevant person being acquired or one or more of its Subsidiaries, provided that:
|
(i)
|
no Lending Transaction may have a term longer than 12 months (including any extensions or refinancings of the original Lending Transaction); and
|
(ii)
|
the aggregate outstanding principal amount of all Lending Transactions (which principal amount shall be deemed to be no longer outstanding for this purpose at the time the beneficiary of the relevant Lending Transaction becomes a member of the Bank Group upon completion of the relevant acquisition, provided such Lending Transaction was made to or in favour of the person acquired or its Subsidiaries) shall not exceed £330,000,000 at any time;
|
(h)
|
Lending Transactions from a member of the Bank Group to any person of the proceeds of equity subscribed by any Restricted Person in, or Subordinated Funding provided to, such member (other than any such proceeds which are otherwise applied in mandatory prepayment of any or all Facilities under this Agreement or pursuant to Clause 22.4 (
Cure provisions
) or otherwise); and
|
(i)
|
the Existing Loans including any loan made under binding commitments in effect on the Signing Date (an “
Investment
”) provided that the aggregate principal amount outstanding thereunder may not be increased from that existing at the Signing Date in reliance on this paragraph (i) (except with respect to accrual or capitalisation of interest) other than:
|
(i)
|
as required by the terms of the Investment in existence on the Signing Date; or
|
(ii)
|
as otherwise permitted under this Agreement;
|
(j)
|
any loans or credit granted:
|
(i)
|
in accordance with Clause 23.12 (
Acquisitions and mergers
); and
|
(ii)
|
by a SSN Finance Subsidiary as contemplated in the definition of “SSN Finance Subsidiary” or the on-lending by the Parent to the Company of the proceeds of an issuance of Senior Secured Notes;
|
(k)
|
any loans made by any member of the Bank Group to its employees either:
|
(i)
|
in the ordinary course of its employees’ employment; or
|
(ii)
|
to fund the exercise of share options or the purchase of capital stock by its employees, directors, officers or consultants of the Group,
|
(l)
|
any loan made by a member of the Bank Group pursuant to either an Asset Passthrough or a Funding Passthrough;
|
(m)
|
any loan made by a member of the Bank Group to a member of the Wider Group, where the proceeds of such loan are, or are to be (whether directly or indirectly) used:
|
(i)
|
to make payments to the High Yield Trustee in respect of High Yield Trustee Amounts (as such terms are defined in the HYD Intercreditor Agreement) in respect of the Existing High Yield Notes;
|
(ii)
|
to make equivalent payments to those specified in paragraph (i) above in respect of any High Yield Refinancings or in respect of any Additional High Yield Notes;
|
(iii)
|
to make payments under the Senior Secured Notes Documents;
|
(iv)
|
provided that no Event of Default has occurred and is continuing or is likely to occur as a result thereof, to fund Permitted Payments; or
|
(v)
|
at any time after the occurrence of an Event of Default, to fund Permitted Payments to the extent not prohibited by the HYD Intercreditor Agreement, the Group Intercreditor Agreement or a Supplemental HYD Intercreditor Agreement;
|
(n)
|
credit granted by any member of the Bank Group to a member of the Wider Group, where the Financial Indebtedness outstanding thereunder relates to Intra-Group Services in the ordinary course of business;
|
(o)
|
any guarantee given in respect of membership interests in any company limited by guarantee where the acquisition of such membership interest is permitted under Clause 23.12
(
Acquisitions and mergers
)
;
|
(p)
|
any customary title guarantee given in connection with the assignment of leases where such assignment is permitted under Clause 23.11 (
Disposals
);
|
(q)
|
any guarantees or similar undertakings granted by any member of the Bank Group in favour of H.M. Revenue & Customs in respect of any obligations of Virgin Media (UK) Group, Inc. in respect of UK tax in order to facilitate the winding up of Virgin Media (UK) Group, Inc. provided that the Facility Agent shall have first received confirmation from the Company that based on discussions with H.M. Revenue & Customs and the Company’s reasonable assumptions, the Company does not believe that the liability under such guarantee will exceed £15,000,000 (such confirmation to be supported by a letter from the Company’s auditors for the time being, confirming that based on the Company’s calculations of such tax liability the Company’s confirmation is a reasonable assessment of such tax liability);
|
(r)
|
any loan granted as a result of a Subscriber being allowed terms, in the ordinary course of trade, whereby it does not have to pay for the services provided to it for a period after the provision of such services;
|
(s)
|
a loan made or a credit granted to a Joint Venture to the extent permitted under Clause 23.12(a)(iv) (
Acquisitions and mergers
);
|
(t)
|
any loans or guarantees relating to Excess Capacity Network Services provided that the price payable to any member of the Bank Group in relation to such Excess Capacity Network Services is no less than the Cost incurred by the relevant member of the Bank Group in providing such Excess Capacity Network Services;
|
(u)
|
liquidity loans of a type which is customary for asset securitisation programmes or other receivables factoring transactions, provided in connection with any asset securitisation programme or receivables factoring transaction otherwise permitted by Clause 23.11(b)(xvi) (
Disposals
);
|
(v)
|
any counter guarantee in relation to a rental guarantee;
|
(w)
|
any loans and guarantees entered into in respect of a Permitted Transactions;
|
(x)
|
any loans or other credit made available to Asset Securitisation Subsidiaries and any notes issued by, and other amounts payable over time, by a purchaser of receivables in relation to any asset securitisation programme or receivables factoring transaction using a deferred purchase price structure including amounts payable pursuant to financing or operating leases; and
|
(y)
|
loans made, credit granted or guarantees given by any member of the Bank Group not falling within paragraphs (a) to (x) above, in an aggregate amount not
|
23.16
|
Insurance
|
23.17
|
Intellectual Property Rights
|
(a)
|
make such registrations and pay such fees and similar amounts as are necessary to keep those registered Intellectual Property Rights owned by any member of the Bank Group and which are material to the conduct of the business of the Bank Group as a whole from time to time;
|
(b)
|
take such steps as are necessary and commercially reasonable (including, without limitation, the institution of legal proceedings) to prevent third parties infringing those Intellectual Property Rights referred to in paragraph (a) above) and (without prejudice to paragraph (a) above) take such other steps as are reasonably practicable to maintain and preserve its interests in those rights, except where failure to do so will not have or not be reasonably likely to have a Material Adverse Effect;
|
(c)
|
ensure that any licence arrangements in respect of the Intellectual Property Rights referred to in paragraph (a) above entered into with any third party are entered into on arm’s length terms and in the ordinary course of business (which shall include, for the avoidance of doubt, any such licensing arrangements entered into in connection with outsourcing on normal commercial terms) and will not have or not be reasonably likely to have a Material Adverse Effect;
|
(d)
|
not permit any registration of any of the Intellectual Property Rights referred to in paragraph (a) above to be abandoned, cancelled or lapsed or to be liable to any claim of abandonment for non-use or otherwise to the extent the same would or is reasonably likely to have a Material Adverse Effect; and
|
(e)
|
pay all fees, and comply with each of its material obligations under, any licence of Intellectual Property Rights which are material to the conduct of the business of the Bank Group as a whole from time to time.
|
23.18
|
Share capital
|
23.19
|
Financial year end
|
23.20
|
Capital expenditure
|
23.21
|
Constitutive documents
|
23.22
|
ERISA
|
(a)
|
Each Obligor will, and the Company will procure that each member of the Bank Group will, give the Facility Agent prompt notice of the adoption of, participation in or contribution to any Plan by it or any ERISA Affiliate, or any action by any of these to adopt, participate in or contribute to any Plan, or the incurrence by any of them of any liability or obligation to any Plan.
|
(b)
|
Each Obligor must (and will procure that its Subsidiaries that are member of the Bank Group will) promptly upon becoming aware of it notify the Facility Agent of:
|
(i)
|
any Reportable Event;
|
(ii)
|
the termination of or withdrawal from, or any circumstances reasonably likely to result in the termination of or withdrawal from, any Plan subject to Title IV of ERISA; and
|
(iii)
|
a claim or other communication alleging material non-compliance with any law or regulation relating to any Plan.
|
(c)
|
No Obligor or any of its ERISA Affiliates may or is required to make any payment or contribution with respect to any Plan.
|
(d)
|
Each Obligor and its ERISA Affiliates must be, and remain, in compliance in all material respects with all laws and regulations relating to each of its Plans.
|
(e)
|
Each of the Obligors and its ERISA Affiliates must ensure that no event or condition exists at any time in relation to a Plan which is reasonably likely to result in the imposition of a lien or other encumbrance on any of its assets or which is reasonably likely to have a Material Adverse Effect.
|
23.23
|
Pension Plans
|
(a)
|
The Company shall use reasonable endeavours to ensure that all pension plans maintained and operated by it or any member of the Bank Group, generally for the benefit of employees of any member of the Bank Group are maintained and operated and have been valued by an actuary appointed by the Company in accordance with all applicable laws, if any, from time to time and that the employer contributions are assessed and paid in all material respects in accordance with the governing provisions of such schemes and all laws applicable thereto, in each case, save to the extent that any failure to do so does not have or is not reasonably likely to have a Material Adverse Effect.
|
(b)
|
Without prejudice to the generality of Clause 23.23(a) (
Pension Plans
):
|
(i)
|
the Company shall ensure that, except for the NTL Pension Plan and the NTL 1999 Pension Scheme (the “
UK DB Schemes
”), each UK Pension Scheme is, or has at any time been, a money purchase scheme as defined in s181 of the Pension Schemes Act 1993) and no member of the Wider Group is, for the purposes of either s38 or s43 of the Pensions Act 2004, connected with or an associate of any employer of an occupational pension scheme which is not a money purchase scheme;
|
(ii)
|
each Participating Employer shall ensure that, in relation to each UK Pension Scheme, no action or omission is taken or omitted to be taken by it and no circumstances or event within its control is permitted to occur which has or is reasonably likely to have a Material Adverse Effect (including, without limitation, any statutory debt arising on any Participating Employer under the Pensions Act 1995 (or any regulations made under it) or, in the case of any UK DB Scheme, the issue of a Financial Support Direction or Contribution Notice to any member of the Wider Group);
|
(iii)
|
the Company shall promptly notify the Facility Agent of any change in the rate of contributions to any UK DB Schemes, paid or recommended to be paid (whether by the scheme actuary or otherwise) or required by law or otherwise which would reasonably be expected to have a Material Adverse Effect;
|
(iv)
|
each Obligor shall immediately notify the Facility Agent of any investigation or proposed investigation by the Pensions Regulator which it has been informed may lead to the issue of a Financial Support Direction or a Contribution Notice to it or any member of the Bank Group;
|
(v)
|
each Obligor shall immediately notify the Facility Agent if it receives a Financial Support Direction or a Contribution Notice from the Pensions Regulator; and
|
(vi)
|
the Company shall procure that each member of the Bank Group shall ensure that all Foreign Pension Plans administered by them or into which they make payments, obtain or retain (as applicable) registered status under and as required by applicable law and are administered in a timely manner in all respects in compliance with all applicable laws, in the case of each of the foregoing, except where the failure to do any of the foregoing will not have a Material Adverse Effect.
|
23.24
|
“Know your client” checks
|
(a)
|
If:
|
(i)
|
the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;
|
(ii)
|
any change in the status of an Obligor or the composition of the shareholders of an Obligor after the date of this Agreement; or
|
(iii)
|
a proposed assignment or transfer by a Lender of any of its rights and/or obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,
|
(b)
|
Each Lender shall promptly upon the request of the Facility Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself) in order for the Facility Agent to carry out and be satisfied it has complied with all necessary “know your client” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Relevant Finance Documents.
|
(c)
|
The Company shall, by not less than 5 Business Days prior written notice to the Facility Agent, notify the Facility Agent (which shall promptly notify the Lenders) of its intention to request that any person becomes an Acceding Obligor pursuant to Clause 25 (
Acceding Group Companies
).
|
(d)
|
Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Acceding Obligor obliges the Facility Agent or any Lender to comply with “know your client” or similar identification procedures in circumstances where the necessary information is not already available to it, the Company shall promptly upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective New Lender) in order for the Facility Agent or such Lender or any prospective New Lender to carry out and be satisfied it has complied with all necessary “know your client” or other similar checks under all applicable laws and regulations pursuant to the accession of such Subsidiary to this Agreement as an Acceding Obligor.
|
23.25
|
Hedging
|
(a)
|
ensure that the Group enters into sufficient Hedging Agreements so as to ensure that (in its opinion) the Group has adequately hedged its liabilities; and
|
(b)
|
as soon as reasonably practicable following request by the Facility Agent provide the Facility Agent with copies of each such Hedging Agreement entered into.
|
23.26
|
Further Assurance
|
(a)
|
The Parent and each Obligor shall (and the Company shall procure that each member of the Bank Group shall) at its own expense, promptly take all such reasonable action as the Facility Agent or the Security Trustee may require for the purpose of complying with the provisions of paragraph (b) below and for the registration or filing of any Security Documents delivered pursuant thereto with all appropriate authorities to the extent necessary for the purposes of perfecting the Security created thereunder.
|
(b)
|
The Company shall:
|
(i)
|
within 60 days after the Closing Date, ensure that sufficient members of the Bank Group shall become a party to this Agreement as an Obligor so as to satisfy the 80% Security Test, as tested by reference to the Original Financial Statements, and, thereafter, subject to the proviso below and except as otherwise provided in this Clause 23.26 (
Further Assurance
), procure that the 80% Security Test is satisfied at the end of each financial year starting with the financial year ending 31 December 2013 where such test is calculated by reference to the annual financial information relating to the Bank Group most recently delivered pursuant to Clause 23.2 (
Financial information
) and certified in the relevant compliance certificate accompanying the same;
|
(ii)
|
ensure that any member of the Bank Group who gives a guarantee in respect of the Senior Secured Notes shall also become a Guarantor hereunder;
|
(iii)
|
procure that in relation to any member of the Bank Group which becomes a Borrower for the purposes of this Agreement, any Holding Company of that Borrower that is a member of the Bank Group shall also become a Guarantor hereunder; and
|
(iv)
|
subject to any Security Interests permitted under Clause 23.8
(
Negative pledge
) and Clause 42.7 (
Release of Guarantees and Security
) procure
|
(c)
|
A breach of paragraph (b) above shall not constitute a Default if:
|
(i)
|
one or more members of the Bank Group become Obligors in accordance with Clause 25.2 (
Acceding Borrowers
) or Clause 25.3 (
Acceding Guarantors
), as applicable, within 10 Business Days of the delivery of a compliance certificate by the Borrower demonstrating that the 80% Security Test is not satisfied; and
|
(ii)
|
the Facility Agent (acting reasonably) is satisfied that the 80% Security Test would have been satisfied at the end of the relevant financial year if such compliance certificate had been prepared on the basis that such members of the Bank Group had been Obligors as at that date.
|
(d)
|
In relation to any provision of this Agreement which requires the Obligors or any member of the Bank Group to deliver a Security Document for the purposes of granting any guarantee or Security for the benefit of the Relevant Finance Parties, the Security Trustee agrees to execute, as soon as reasonably practicable, any such guarantee or Security Document which is presented to it for execution.
|
(e)
|
At any time after an Event of Default has occurred and whilst such Event of Default is continuing, each Obligor shall, at its own expense, take any and all action as the Security Trustee may deem necessary for the purposes of perfecting or otherwise protecting the Lenders’ interests in the Security constituted by the Security Documents.
|
(f)
|
For the purposes of determining whether the 80% Security Test is satisfied at any time under this Agreement other than at the end of a financial year pursuant to Clause 23.26(b) (
Further Assurance
) or for purposes of determining whether the 80% Security Test would be satisfied after a disposal or other transaction is
|
(i)
|
the 80% Security Test shall be applied using the financial statements in respect of the Financial Quarter immediately preceding the Testing Date (and in the case of Clause 23.26(g) (
Further Assurance
), including the financial information delivered pursuant to Clause 25.1 (
Permitted Affiliate Group Designation
), adjusted pro forma for the transaction (which, in the case of Clause 23.26(g) (
Further Assurance
) means the designation of the Permitted Affiliate Parent as a Borrower and/or a Guarantor and the inclusion of the Subsidiaries of the Permitted Affiliate Parent as members of the Bank Group in the manner set of out Clause 25.1 (
Permitted Affiliate Group Designation
)) for which the 80% Security Test is being tested and any other transactions that took place after the end of such Financial Quarter that also required the satisfaction of the 80% Security Test; and
|
(ii)
|
any member of the Bank Group which (A) is not an Obligor or (B) has not granted Security over assets in accordance with the 80% Security Test, each in favour of the Security Trustee in accordance with this Clause, shall be excluded from the numerator (but not the denominator) in the determination of whether members of the Bank Group generating not less than 80% of Annualised EBITDA have acceded as Guarantors for purposes of the 80% Security Test.
|
(g)
|
On or prior to the date falling 60 Business Days from any Permitted Affiliate Group Designation Date, the Company shall deliver to the Facility Agent a certificate signed by an authorised signatory of the Company confirming that the 80% Security Test (calculated on a combined basis (in accordance with paragraph (f) above) across the Bank Group (as existing immediately prior to the Permitted Affiliate Group Designation Date) and the Permitted Affiliate Parent and its Subsidiaries) is satisfied.
|
23.27
|
Content Transaction
|
(a)
|
Notwithstanding any other provisions of this Agreement, no Content Transaction shall be restricted by (nor deemed to constitute a utilisation of any of the permitted exceptions to) any provision of this Agreement, neither shall the implementation of any Content Transaction constitute a breach of any provision of any Relevant Finance Document, provided that:
|
(i)
|
the cash proceeds of any Content Transaction are applied in accordance with Clause 12 (
Mandatory Prepayment and Cancellation
);
|
(ii)
|
after giving pro forma effect for such Content Transaction, (i) the Senior Net Debt to Annualised EBITDA ratio does not exceed 4.50:1 and (ii) the Total Net Debt to Annualised EBITDA ratio does not exceed 5.50:1; and
|
(iii)
|
at the time of completion of such Content Transaction, no Event of Default has occurred and is continuing and no Event of Default would occur as a result of such Content Transaction.
|
(b)
|
Any Joint Venture established pursuant to a Content Transaction shall thereafter not be subject to any restrictions under this Agreement.
|
23.28
|
High Yield Notes
|
23.29
|
SSN Finance Subsidiary Covenants
|
(a)
|
effecting or facilitating the issuance of Senior Secured Notes and on-lending the proceeds thereof as contemplated in the definition of “SSN Finance Subsidiary”;
|
(b)
|
intergroup debit balances, intergroup credit balances and other credit balances in bank accounts and cash, provided that any intergroup credit balances owed to any SSN Finance Subsidiary by an Obligor shall be:
|
(i)
|
subject to Security;
|
(ii)
|
to the extent applicable, subject to the provisions of the HYD Intercreditor Agreement or the Group Intercreditor Agreement;
|
(c)
|
any rights and liabilities arising under the Relevant Finance Documents, any Senior Secured Notes Documents or any High Yield Notes;
|
(d)
|
having rights and liabilities under any Hedging Agreements entered into other than for speculative purposes, it being acknowledged by the parties to this Agreement that hedging of actual or reasonably anticipated interest rate and/or foreign exchange rate exposure shall not constitute speculative purposes;
|
(e)
|
incurring liabilities for or in connection with Tax Liabilities or arising by operation of law; and
|
(f)
|
in respect of any service contracts for any directors or employees.
|
23.30
|
No Amendments
|
(a)
|
No Obligor shall (and the Company shall procure that no member of the Bank Group shall) amend the Tax Cooperation Agreement (to the extent it is a party thereto) or its constitutional documents, in each case, in a manner which could reasonably be expected to have a Material Adverse Effect.
|
(b)
|
The Company shall procure that, except as permitted by the HYD Intercreditor Agreement and the Group Intercreditor Agreement, no amendment is made to the Existing High Yield Notes or, any Additional High Yield Notes or any Senior Secured Notes (including, in each case as applicable, the terms of the guarantees given in respect thereof), in each case in a manner which could reasonably be expected to have a Material Adverse Effect, other than with the prior written consent of the Instructing Group or where required by law.
|
23.31
|
Internal Reorganisations
|
(a)
|
Neither any Obligor nor the Parent (for these purposes, a “
Predecessor Obligor
”) shall, without the prior written consent of the Instructing Group, liquidate on a solvent basis any Borrower, any Obligor that is a Material Subsidiary, the Company, Intermediate Holdco or Virgin Media Secured Finance PLC (a “
Solvent Liquidation
”) unless:
|
(i)
|
on or prior to the Solvent Liquidation, an entity (the “
Successor Entity
”) acquires substantially all of the assets and assumes substantially all of the liabilities of the Predecessor Obligor (a “
Liquidation Transfer
”), excluding any rights under contracts that cannot be assigned or liabilities that will be satisfied or released upon the Solvent Liquidation, on an arms’ length basis and for full consideration;
|
(ii)
|
the Successor Entity is organised in the same jurisdiction as that in which the Predecessor Obligor is organised and is either:
|
(A)
|
an existing Obligor; or
|
(B)
|
a Subsidiary of the Company or any Permitted Affiliate Parent that is entitled to become (and subsequently does become) an Obligor in accordance with the provisions of Clause 25.2 (
Acceding Borrowers
) or Clause 25.3 (
Acceding Guarantors
);
|
(iii)
|
the Successor Entity does not incur any additional material liabilities in connection with the Solvent Liquidation other than those which are to be transferred to it by the Predecessor Obligor but which did not arise directly as a result of the Solvent Liquidation;
|
(iv)
|
to the extent previously provided in respect of the shares or the assets of the Predecessor Obligor, the Relevant Finance Parties are granted a first ranking security interest over the shares and/or assets of the Successor Entity (but only, in the case of any Predecessor Obligor other than the Company, to the extent required in order to comply with the 80% Security Test);
|
(v)
|
no Event of Default has occurred and is continuing or would arise from the Liquidation Transfer or the Solvent Liquidation; and
|
(vi)
|
immediately after the Solvent Liquidation, the following documents are delivered to the Facility Agent each in a form previously approved by the Facility Agent (acting on the instructions of the Instructing Group):
|
(A)
|
copies of solvency declarations of the directors of the Successor Entity confirming to the best of their knowledge and belief, that the Successor Entity was balance sheet solvent immediately prior to and after the Solvent Liquidation, accompanied by any report by the auditors or other advisers of the relevant Successor Entity on which such directors have relied for the purposes of giving such declaration;
|
(B)
|
copies of the resolutions of the Predecessor Obligor and the Successor Entity (to the extent required by law) approving the Liquidation Transfer and/or the Liquidation (as applicable);
|
(C)
|
copies of the statutory declarations of the directors of the Predecessor Obligor (to the extent required by law) given in connection with Solvent Liquidation;
|
(D)
|
a copy of the executed transfer agreement relating to the Liquidation Transfer; and
|
(E)
|
the legal opinion from the Successor Entity’s counsel confirming (1) the due capacity and incorporation of each of the Successor Entity and the Predecessor Obligor, (2) the power and authority of the Successor Entity to enter into and perform its obligations under this Agreement and any other Relevant Finance Document to which it is a party and (3) that the transfer agreement giving
|
(b)
|
The solvent liquidation, dissolution or other reorganisation of any member of the Bank Group (other than any Borrower, the Company, Intermediate Holdco and Virgin Media Secured Finance PLC) shall be permitted provided that any payments or assets distributed as a result of such solvent liquidation, dissolution or other reorganisation are distributed to other members of the Bank Group.
|
23.32
|
Undertakings in Respect of the Group Intercreditor Agreement
|
23.33
|
Environmental compliance
|
(a)
|
The Company shall (and the Company shall ensure that each member of the Bank Group will):
|
(i)
|
comply with all Environmental Law;
|
(ii)
|
obtain, maintain and ensure compliance with all requisite Environmental Permits;
|
(iii)
|
implement procedures to monitor compliance with and to prevent liability under any Environmental Law,
|
(b)
|
The Company shall (and the Company shall procure that each member of the Bank Group will) promptly notify the Facility Agent of any Environmental Claim (to the best of the Company’s or member of the Bank Group’s knowledge and belief) pending or threatened against it which, if substantiated, has or is reasonably likely to have a Material Adverse Effect.
|
(c)
|
The Company shall not (and the Company shall procure that no member of the Bank Group will) permit or allow to occur any discharge, release, leak, migration or other escape of any Hazardous Substance into the Environment on, under or from any property owned, leased, occupied or controlled by it, where such discharge, release, leak, migration or escape has or is reasonably likely to have a Material Adverse Effect.
|
23.34
|
United States laws
|
(a)
|
extend credit for the purpose, directly or indirectly, of buying or carrying Margin Stock in violation of the Margin Regulations; or
|
(b)
|
use the proceeds of any Advance or drawings under any Letter of Credit, in each case, directly or indirectly, to buy or carry Margin Stock or for any other purpose in violation of the Margin Regulations.
|
24.
|
CONFIDENTIALITY OF FUNDING RATES AND REFERENCE BANK QUOTATIONS
|
24.1
|
Confidentiality and disclosure
|
(a)
|
The Facility Agent, each Borrower and each Obligor agree to keep each Funding Rate (and, in the case of the Facility Agent, each Reference Bank Quotation) confidential and not to disclose it to anyone, save to the extent permitted by paragraphs (b), (c) and (d) below.
|
(b)
|
The Facility Agent may disclose:
|
(i)
|
any Funding Rate (but not, for the avoidance of doubt, any Reference Bank Quotation) to the relevant Borrower pursuant to Clause 14.7 (
Notification
); and
|
(ii)
|
any Funding Rate or any Reference Bank Quotation to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Facility Agent and the relevant Lender or Reference Bank or Alternative Reference Bank, as the case may be.
|
(c)
|
The Facility Agent may disclose any Funding Rate or any Reference Bank Quotation, each Borrower and each Obligor may disclose any Funding Rate, to:
|
(i)
|
any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and representatives if any person to whom that Funding Rate or Reference Bank Quotation is to be given pursuant to this paragraph (c) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or Reference Bank Quotation or is otherwise bound by requirements of confidentiality in relation to it;
|
(ii)
|
any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances;
|
(iii)
|
any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate or Reference Bank Quotation is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Facility Agent or the relevant Borrower or Obligor, as the case may be, it is not practicable to do so in the circumstances; and
|
(iv)
|
any person with the consent of the relevant Lender or Reference Bank or Alternative Reference Bank, as the case may be.
|
(d)
|
The Facility Agent’s obligations in this Clause 24 relating to Reference Bank Quotations are without prejudice to its obligations to make notifications under Clause 14.7 (
Notification
) provided that (other than pursuant to paragraph (b)(i) above) the Facility Agent shall not include the details of any individual Reference Bank Quotation as part of any such notification.
|
24.2
|
Related obligations
|
(a)
|
The Facility Agent, each Borrower and each Obligor acknowledge that each Funding Rate (and, in the case of the Facility Agent, each Reference Bank Quotation) is or may be price-sensitive information and that its use may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and the Facility Agent, each Borrower and each Obligor undertake not to use any Funding Rate or, in the case of the Facility Agent, any Reference Bank Quotation for any unlawful purpose.
|
(b)
|
The Facility Agent, each Borrower and each Obligor agree (to the extent permitted by law and regulation) to inform the relevant Lender or Reference Bank or Alternative Reference Bank, as the case may be:
|
(i)
|
of the circumstances of any disclosure made pursuant to Clause 24.1(c)(ii) (
Confidentiality and disclosure
) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and
|
(ii)
|
upon becoming aware that any information has been disclosed in breach of this Clause 24.
|
24.3
|
No Event of Default
|
25.
|
ACCEDING GROUP COMPANIES
|
25.1
|
Permitted Affiliate Group Designation
|
(a)
|
The Company may provide the Facility Agent with notice that it wishes to include any direct or indirect Subsidiary (the “
Permitted Affiliate Parent
”) of the Ultimate Parent and the Subsidiaries of any such Permitted Affiliate Parent as members of the Bank Group for the purposes of this Agreement. Such Subsidiary shall become a Permitted Affiliate Parent for the purposes of this Agreement upon confirmation from the Facility Agent to the Company that:
|
(i)
|
such Subsidiary and the Company have complied with the requirements of:
|
(A)
|
Clause 25.2 (
Acceding Borrowers
) and such Subsidiary has acceded to this Agreement as a Borrower; or
|
(B)
|
Clause 25.3 (
Acceding Guarantors
) and such Subsidiary has acceded to this Agreement as a Guarantor;
|
(ii)
|
Security has been granted (in form and substance satisfactory, to the Facility Agent (acting reasonably)) in favour of the Security Trustee over all of its shares and all of the rights in relation to loans from any member of the Wider Group (other than a member of the Bank Group and the Permitted Affiliate Parent and its Subsidiaries) to it and its Subsidiaries;
|
(iii)
|
the Company has delivered a certificate to the Facility Agent signed by an authorised signatory of the Company which certifies that:
|
(A)
|
the designation of such Subsidiary as a Permitted Affiliate Parent under this Agreement will not:
|
(1)
|
materially and adversely affect the Security and guarantees provided in relation to the liabilities under this Agreement; or
|
(2)
|
result in the Lenders under this Agreement becoming structurally subordinated in right of payment to lenders to the Permitted Affiliate Parent and its Subsidiaries; and
|
(B)
|
if the ratio of Senior Net Debt to Annualised EBITDA and Total Net Debt to Annualised EBITDA of the Bank Group is calculated for the most recent Ratio Period ending prior to the Permitted Affiliate Parent becoming a Party for which financial statements have been delivered pursuant to Clause 23.2 (
Financial Information
) (the “
Relevant Ratio Period
”) but adding to the:
|
(1)
|
amount of Senior Net Debt and of Total Net Debt used in such calculations any net increase in the Senior Net Debt or Total Net Debt of the Bank Group (as applicable) since the end of the Relevant Ratio Period or subtracting from the amount of Senior Net Debt or Total Net Debt (as applicable) used in such calculation any net deduction in the Senior Net Debt or Total Net Debt of the Bank Group (as applicable) (in each case taking into account the
|
(2)
|
Annualised EBITDA of the Bank Group, the Annualised EBITDA of the Permitted Affiliate Parent and its Subsidiaries for the Relevant Ratio Period,
|
(iv)
|
it has received, in form and substance satisfactory to it (acting reasonably):
|
(A)
|
a combined Bank Group business plan pro forma for the designation of such Subsidiary as a Permitted Affiliate Parent which sets out the management plan for the period from the date of the proposed designation up to and including the earlier to occur of:
|
(1)
|
the then latest applicable Final Maturity Date; and
|
(2)
|
the date falling three years from the date of the relevant designation;
|
(B)
|
an updated Group Structure Chart showing the Common Holding Company (as defined below) and all of its direct and indirect Subsidiaries pro forma for the designation of such Subsidiary as a Permitted Affiliate Parent; and
|
(C)
|
financial statements for the last financial year of the Permitted Affiliate Parent and its Subsidiaries or any Holding Company of the Permitted Affiliate Parent and its Subsidiaries including consolidated balance sheets, consolidated income statements and statements of cash flow; and
|
(v)
|
the Company has given written notice to the Facility Agent identifying a person that is a Holding Company of the Company and each Permitted Affiliate Parent as the common Holding Company for the purposes of this Agreement (“
Common Holding Company
”) provided that the Common Holding Company and any of its Holding Companies has not issued or incurred, and shall not issue or incur, Parent Debt.
|
25.2
|
Acceding Borrowers
|
(a)
|
Subject to paragraph (b) below, the Company may, upon not less than 5 Business Days prior written notice to the Facility Agent, request that it, any Permitted Affiliate Parent or any member of the Bank Group which is a directly or indirectly wholly-owned Subsidiary of:
|
(i)
|
the Company; or
|
(ii)
|
any Permitted Affiliate Parent that is a wholly owned Subsidiary of any Permitted Affiliate Holdco,
|
(b)
|
Such member of the Bank Group or any Permitted Affiliate Parent may become an Acceding Borrower to a Facility if:
|
(i)
|
it is incorporated in the same jurisdiction as an existing Borrower for that Facility or the Instructing Group has approved the addition of that member of the Bank Group or any Permitted Affiliate Parent as an Acceding Borrower (provided that no such consent shall be required for the US Borrower);
|
(ii)
|
the Company delivers to the Facility Agent a duly completed and executed Accession Notice pursuant to which such member of the Bank Group or Permitted Affiliate Parent, as applicable, agrees to become a party to this Agreement as an Acceding Borrower and (subject to any provision of law prohibiting the same) an Acceding Guarantor;
|
(iii)
|
the Company confirms that no Event of Default is continuing or would occur as a result of that member of the Bank Group or any Permitted Affiliate Parent becoming an Acceding Borrower and (if applicable) an Acceding Guarantor; and
|
(iv)
|
the Facility Agent has received all of the documents and other evidence listed in Schedule 8 (
Accession Documents
) in relation to that member of the Bank Group or any Permitted Affiliate Parent, each in form and substance satisfactory to the Facility Agent, acting reasonably.
|
(c)
|
The Facility Agent shall notify the Company and the Lenders promptly upon being satisfied that the conditions specified in paragraph (b) above (and, in the case of any Permitted Affiliate Parent, Clause 25.1(a) (
Permitted Affiliate Group Designation
)) have been satisfied.
|
25.3
|
Acceding Guarantors
|
(a)
|
Subject to paragraph (b) below, the Company may, upon not less than 5 Business Days prior written notice to the Facility Agent, request that any member of the Bank Group or any Permitted Affiliate Parent becomes an Acceding Guarantor under this Agreement.
|
(b)
|
Such member of the Bank Group or Permitted Affiliate Parent may become an Acceding Guarantor if:
|
(i)
|
the Company delivers to the Facility Agent a duly completed and executed Accession Notice;
|
(ii)
|
the Company confirms that no Event of Default is continuing or would occur as a result of that member of the Bank Group or any proposed Permitted Affiliate Parent becoming an Acceding Guarantor; and
|
(iii)
|
the Facility Agent has received all of the documents and other evidence listed in Schedule 8 (
Accession Documents
) in relation to that member of the Bank Group or any proposed Permitted Affiliate Parent, each in form and substance satisfactory to the Facility Agent, acting reasonably.
|
(c)
|
The Facility Agent shall notify the Company and the Lenders promptly upon being satisfied that the conditions specified in paragraph (b) above have been satisfied.
|
25.4
|
Assumption of Rights and Obligations
|
26.
|
EVENTS OF DEFAULT
|
26.1
|
Events of Default
|
26.2
|
Non-payment
|
26.3
|
Breach of other obligations
|
(a)
|
Any Obligor does not comply with any of Clauses 23.7 (
Pari passu ranking
), 23.8 (
Negative pledge
), 23.11 (
Disposals
), 23.12 (
Acquisitions and mergers
), 23.14 (
Restricted Payments
), 23.15 (
Loans and guarantees
) or 23.18 (
Share capital
).
|
(b)
|
An Obligor does not comply with any provision of the Relevant Finance Documents (other than those referred to in paragraph (a) above, Clause 26.2 (
Non-payment
) other than non payment by the Company of any amount under Clause 12.2(a) (
Mandatory prepayment from disposal proceeds)
and, subject to Clause 26.20 (
Revolving Facility Acceleration
), Clause 22 (
Financial Covenant
))
and such failure (if capable of remedy before the expiry of such period) continues unremedied for a period of 28 days from the earlier of the date on which (i) such Obligor has become aware of the failure to comply or (ii) the Facility Agent gives notice to the Company requiring the same to be remedied.
|
(c)
|
During the Clean Up Period (as defined below), references to the Group, Material Subsidiaries or members of the Bank Group in Clauses 21 (
Representations and Warranties
), 23 (
Undertakings
) and this Clause 26 will not include any company which has been acquired pursuant to an Acquisition permitted under Clause 23.12(a)(i) or (ii) (
Acquisitions and mergers
) if the relevant event or circumstance, which would, but for the operation of this paragraph (c), have resulted in a Default:
|
(i)
|
existed prior to the date of such Acquisition;
|
(ii)
|
is capable of remedy during the Clean Up Period and reasonable steps are being taken, having become aware of such event or circumstance, to ensure that such event or circumstance is being remedied;
|
(iii)
|
was not procured or approved by any member of the Bank Group; and
|
(iv)
|
has not resulted in or could not be reasonably expected to have, a Material Adverse Effect.
|
26.4
|
Misrepresentation
|
26.5
|
Cross default
|
(a)
|
Subject to paragraph (d) below, any Financial Indebtedness of a member of the Group is not paid when due or within any originally applicable grace period.
|
(b)
|
Subject to paragraph (d) below, any Financial Indebtedness of a member of the Group becomes prematurely due and payable or is placed on demand, in each case as a result of an event of default (howsoever described) under the document relating to that Financial Indebtedness.
|
(c)
|
Subject to paragraph (d) below, any Financial Indebtedness of a member of the Group becomes capable of being declared prematurely due and payable or placed on demand, in each case as a result of an event of default (howsoever described) under the document relating to that Financial Indebtedness.
|
(d)
|
It shall not be an Event of Default under this Clause 26.5 (
Cross default
):
|
(i)
|
where the aggregate principal amount of all Financial Indebtedness to which any event specified in paragraphs (a), (b) or (c) relates is less than £75,000,000 or the equivalent in other currencies; or
|
(ii)
|
if the circumstance which would otherwise have caused an Event of Default under this Clause 26.5 (
Cross default
) is being contested in good faith by appropriate action; or
|
(iii)
|
if the relevant Financial Indebtedness is cash-collateralised and such cash is available for application in satisfaction of such Financial Indebtedness; or
|
(iv)
|
if such Financial Indebtedness is owed by one member of the Bank Group to another member of the Bank Group; or
|
(v)
|
in the case of the Acquisition of an entity which results in that entity becoming a member of the Bank Group, for a period of 180 days following completion of that Acquisition, by reason only of an event of default (however described) arising in relation to the Financial Indebtedness of that acquired entity as a result only of the Acquisition of that acquired entity, provided that such Financial Indebtedness is not placed on demand, becomes prematurely due and payable or is otherwise accelerated during that period); or
|
(vi)
|
if the relevant Financial Indebtedness relates to Hedging Agreements in respect of which a termination event occurs as a result of the refinancing or redemption of any Financial Indebtedness of the Bank Group or any Holding Company of a member of the Bank Group at any time.
|
26.6
|
Insolvency
|
(a)
|
Proceedings have been commenced in respect of the Parent, any Borrower or any Obligor that is a Material Subsidiary in relation to its inability to pay its debts as they fall due or is declared to be unable to pay its debts under applicable law, or it ceases or suspends or threatens to suspend making payments on any of its debts or, by reason of actual or anticipated financial difficulties, it commences negotiations with one or more of its creditors (excluding any Finance Party in its capacity as such) with a view to rescheduling any of its material indebtedness.
|
(b)
|
A moratorium is declared in respect of the Financial Indebtedness in respect of the Parent, any Borrower or any Obligor that is a Material Subsidiary. If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.
|
26.7
|
Insolvency proceedings
|
(a)
|
do not relate to the appointment of an administrator and are stayed or discharged within 30 days from their commencement;
|
(b)
|
relating to a solvent liquidation or dissolution set forth under Clause 23.12 (
Acquisitions and mergers
) or Clause 23.31(b) (
Internal Reorganisations
); or
|
(c)
|
in connection with a reconstruction or amalgamation on terms approved by the Facility Agent (acting on the instructions of the Instructing Group).
|
26.8
|
United States Bankruptcy Laws
|
(a)
|
In this Clause:
|
(b)
|
Any of the following occurs in respect of a US Obligor that is a Borrower or a Material Subsidiary:
|
(i)
|
it makes a general assignment for the benefit of creditors;
|
(ii)
|
it commences a voluntary case or proceeding under any U.S. Bankruptcy Law; or
|
(iii)
|
an involuntary case under any U.S. Bankruptcy Law is commenced against it and is not dismissed or stayed within 60 days after commencement of the case; or
|
(iv)
|
an order for relief or other order approving any case or proceeding is entered under any U.S. Bankruptcy Law.
|
26.9
|
Execution or distress
|
26.10
|
Similar events
|
26.11
|
Unlawfulness
|
26.12
|
Repudiation
|
26.13
|
Cessation of Business
|
26.14
|
Intercreditor Default
|
26.15
|
Loss of Licences
|
(a)
|
terminated, suspended or revoked or does not remain in full force and effect or otherwise expires and is not renewed prior to its expiry (in each case, without replacement by Licence(s) having substantially equivalent effect) in any case in a manner which would or is reasonably likely to have a Material Adverse Effect; or
|
(b)
|
is modified or is breached in a manner which would or is reasonably likely to have a Material Adverse Effect.
|
26.16
|
Material Adverse Change
|
26.17
|
ERISA
|
26.18
|
Acceleration Following Financial Ratio Breach
|
26.19
|
Acceleration
|
(a)
|
cancel the Total Commitments; and/or
|
(b)
|
declare that all or part of the Outstandings be payable on demand, whereupon they shall immediately become payable on demand by the Facility Agent on the instructions of the Instructing Group; and/or
|
(c)
|
demand that all or part of the Outstandings be immediately due and payable, whereupon they shall become immediately due and payable together with all interest accrued on those Outstandings and all other amounts payable by the Obligors under the Relevant Finance Documents, cancel the Total Commitments and/or Ancillary Facility Commitments at which time they shall immediately be cancelled;
|
(d)
|
declare that cash cover in respect of each Documentary Credit is immediately due and payable at which time it shall become immediately due and payable;
|
(e)
|
declare that cash cover in respect of each Documentary Credit is payable on demand at which time it shall immediately become due and payable on demand by the Facility Agent on the instructions of the Instructing Group;
|
(f)
|
declare all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities to be immediately due and payable, at which time they shall become immediately due and payable;
|
(g)
|
declare that all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities be payable on demand, at
|
(h)
|
exercise or direct the Security Trustee to exercise any or all of its rights, remedies, powers or discretions under the Relevant Finance Documents.
|
26.20
|
Revolving Facility Acceleration
|
(a)
|
cancel the Revolving Facility Commitments, Ancillary Facility Commitments and/or any Additional Facility Commitments in relation to an Additional Facility that is a revolving facility;
|
(b)
|
demand that all or part of the Outstandings under the Revolving Facility and/or any Additional Facility that is a revolving facility be immediately due and payable, whereupon they shall become immediately due and payable together with all interest accrued on those Outstandings and all other amounts payable by the Obligors under the Revolving Facility and/or any Additional Facility that is a revolving facility;
|
(c)
|
declare that all or part of the Outstandings under the Revolving Facility and/or any Additional Facility that is a revolving facility be payable on demand, whereupon they shall immediately become payable on demand by the Facility Agent on the instructions of the Composite Revolving Facility Instructing Group;
|
(d)
|
declare that cash cover in respect of each Documentary Credit is immediately due and payable at which time it shall become immediately due and payable;
|
(e)
|
declare that cash cover in respect of each Documentary Credit is payable on demand at which time it shall immediately become due and payable on demand by the Facility Agent on the instructions of the Composite Revolving Facility Instructing Group;
|
(f)
|
declare all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities to be immediately due and payable, at which time they shall become immediately due and payable; and/or
|
(g)
|
declare that all or any part of the amounts (or cash cover in relation to those amounts) outstanding under the Ancillary Facilities be payable on demand, at which time they shall immediately become payable on demand by the Facility Agent on the instructions of the Composite Revolving Facility Instructing Group.
|
26.21
|
Automatic Acceleration
|
26.22
|
Repayment on Demand
|
(a)
|
require repayment of all or the relevant part of the Outstandings on such date as it may specify in such notice (whereupon the same shall become due and payable on such date together with accrued interest thereon and any other sums then owed by the Parent or any Obligor under the Relevant Finance Documents) or withdraw its declaration with effect from such date as it may specify in such notice; and/or
|
(b)
|
select as the duration of any Interest Period or Term which begins whilst such declaration remains in effect a period of six months or less.
|
27.
|
DEFAULT INTEREST
|
27.1
|
Consequences of Non-Payment
|
27.2
|
Default Rate
|
(a)
|
if, for any such period, EURIBOR or LIBOR, as the case may be, cannot be determined, the rate of interest applicable to each Lender’s portion of such Unpaid Sum shall be the rate per annum which is the sum of one per cent., the Margin, (as aforesaid) at such time and the rate per annum that shall be notified to the Facility Agent by such Lender as soon as practicable after the beginning of such period as being that which expresses as a percentage rate per annum the cost to such Lender of funding from whatever sources it may reasonably select its portion of such Unpaid Sum during such period; and
|
(b)
|
if such Unpaid Sum is all or part of an Advance which became due and payable on a day other than the last day of an Interest Period or Term relating thereto, the first Interest Period or Term applicable to it shall be of a duration equal to the unexpired portion of that Interest Period or Term and the rate of interest applicable thereto from time to time during such Interest Period or Term shall be that which exceeds by one per cent. the rate which would have been applicable to it had it not so fallen due.
|
27.3
|
Maturity of Default Interest
|
27.4
|
Construction of Unpaid Sum
|
28.
|
GUARANTEE AND INDEMNITY
|
28.1
|
Guarantee
|
28.2
|
Indemnity
|
28.3
|
Continuing and Independent Obligations
|
28.4
|
Avoidance of Payments
|
28.5
|
Immediate Recourse
|
28.6
|
Waiver of Defences
|
(a)
|
the winding-up, dissolution, administration or reorganisation of any Borrower or Hedging Obligor or any other person or any change in the status, function, control or ownership of any Borrower or Hedging Obligor or any such person;
|
(b)
|
any of the obligations of any Borrower or Hedging Obligor or any other person under any Relevant Finance Document or any Security held by any Relevant Finance Party therefor being or becoming illegal, invalid, unenforceable or ineffective in any respect;
|
(c)
|
any time or other indulgence being granted to or agreed (i) to or with any Borrower or Hedging Obligor or any other person in respect of its obligations or (ii) in respect of any security granted under any Relevant Finance Documents;
|
(d)
|
unless otherwise agreed, any amendment to, or any variation, waiver or release of, any obligation of, or any Security granted by, any Borrower or Hedging Obligor or any other person under any Relevant Finance Document;
|
(e)
|
any total or partial failure to take, or perfect, any Security proposed to be taken in respect of the obligations of any Borrower or Hedging Obligor or any other person under the Relevant Finance Documents;
|
(f)
|
any total or partial failure to realise the value of, or any release, discharge, exchange or substitution of, any security held by any Relevant Finance Party in respect of any Borrower or Hedging Obligor’s obligations under any Relevant Finance Document;
|
(g)
|
any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor, any Hedging Obligor or any other person;
|
(h)
|
any amendment, novation, supplement, extension restatement (however fundamental and whether or not more onerous) or replacement of a Relevant Finance Document or any other document or security including, without limitation, any change in the purpose of, any extension of or increase in any facility or the addition of any new facility under any Relevant Finance Document or other document or security; or
|
(i)
|
any other act, event or omission which might operate to discharge, impair or otherwise affect any of the obligations of any of the Guarantors under this Agreement or any of the rights, powers or remedies conferred upon the Relevant Finance Parties or any of them by this Agreement or by Law.
|
28.7
|
No Competition
|
(a)
|
to claim by way of contribution or indemnity in relation to any of the obligations of each Borrower and each Hedging Obligor under any of the Relevant Finance Documents;
|
(b)
|
to claim or prove as a creditor of any Borrower or Hedging Obligor or any other person or its estate in competition with the Relevant Finance Parties or any of them;
|
(c)
|
to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Relevant Finance Parties under the Relevant Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Relevant Finance Documents by any Relevant Finance Party;
|
(d)
|
to bring legal or other proceedings for an order requiring any Obligor or Hedging Obligor to make any payment, or perform any obligation, in respect of which any Guarantor has given a guarantee, undertaking or indemnity under Clause 28.1 (
Guarantee
); or
|
(e)
|
to exercise any right of set-off against any Obligor or Hedging Obligor,
|
28.8
|
Appropriation
|
28.9
|
Limitation of Liabilities of United States Guarantors
|
28.10
|
US Guarantors
|
(a)
|
In this clause, the terms “Fraudulent Transfer Laws,” “US Obligor” and “US Guarantor” are to be construed in accordance with the Fraudulent Transfer Laws.
|
(b)
|
Each US Guarantor acknowledges that:
|
(i)
|
it will receive valuable direct or indirect benefits as a result of the transactions financed by the Relevant Finance Documents;
|
(ii)
|
those benefits will constitute reasonably equivalent value and fair consideration for the purpose of any fraudulent transfer law; and
|
(iii)
|
each Relevant Finance Party has acted in good faith in connection with the guarantee given by that US Guarantor and the transactions contemplated by the Relevant Finance Documents.
|
(c)
|
Each US Guarantor represents and warrants to each Relevant Finance Party that:
|
(i)
|
the aggregate amount of its debts (including its obligations under the Relevant Finance Documents) is less than the aggregate value (being the lesser of fair valuation and present fair saleable value) of its assets;
|
(ii)
|
its capital is not unreasonably small to carry on its business as it is being conducted;
|
(iii)
|
it has not incurred and does not intend to incur debts beyond its ability to pay as they mature; and
|
(iv)
|
it has not made a transfer or incurred any obligation under any Relevant Finance Document with the intent to hinder, delay or defraud any of its present or future creditors.
|
(d)
|
Each representation and warranty in this Clause:
|
(i)
|
is made by each US Guarantor on the date of this Agreement;
|
(ii)
|
is deemed to be repeated by:
|
(A)
|
each Acceding Guarantor on the date that Acceding Guarantor becomes a US Guarantor; and
|
(B)
|
each US Guarantor on the date of each Utilisation Request and the first day of each Term; and
|
(iii)
|
is, when repeated, applied to the circumstances existing at the time of repetition.
|
28.11
|
Droit de Discussion and Droit de Division
|
(a)
|
Any right which at any time any Guarantor may have under the existing or future laws of Jersey whether by virtue of the droit de discussion or otherwise to require that recourse be had to the assets of any other person before any claim is enforced against such Guarantor in respect of the obligations assumed by such Guarantor under or in connection with any Relevant Finance Document is hereby waived.
|
(b)
|
Any right which at any time any Guarantor may have under the existing or future laws of Jersey whether by virtue of the droit de division or otherwise to require that any liability under any guarantee or indemnity given in or in connection with any Relevant Finance Document be divided or apportioned with any other person or reduced in any manner whatsoever is hereby waived.
|
28.12
|
Guarantee Limitations
|
29.
|
ROLE OF THE FACILITY AGENT, THE ARRANGERS, THE L/C BANKS AND OTHERS
|
29.1
|
Appointment of the Facility Agent
|
29.2
|
Duties of the Facility Agent
|
(a)
|
Subject to paragraph (b) below, the Facility Agent shall promptly forward to a party to this Agreement the original or a copy of any document which is delivered to the Facility Agent for that party by any other party.
|
(b)
|
Without prejudice to Clause 36.14 (
Copy of Transfer Deed, Transfer Agreement or Increase Confirmation to Company
), paragraph (a) above shall not apply to any Transfer Deed, Transfer Agreement or any Increase Confirmation.
|
(c)
|
Except where a Relevant Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to any party to this Agreement.
|
(d)
|
If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Relevant Finance Party (other than the Facility Agent, the Arranger or the Security Trustee) under this Agreement it shall promptly notify the other Relevant Finance Parties.
|
(e)
|
The Facility Agent shall promptly inform each Lender of the contents of any notice or document received by it in its capacity as Facility Agent from the Parent or any of the Obligors under the Relevant Finance Documents.
|
(f)
|
The Facility Agent is not obliged to monitor or enquire as to whether or not a Default has occurred. The Facility Agent shall not be deemed to have knowledge of the occurrence of a Default. However, if the Facility Agent receives notice from a Party referring to this Agreement, describing the Default and stating that the event is a Default, it shall promptly notify the Lenders of such notice.
|
(g)
|
If so instructed by the Instructing Group, the Facility Agent shall refrain from exercising any power or discretion vested in it as agent under any Relevant Finance Document.
|
(h)
|
The duties of the Facility Agent under the Relevant Finance Documents are, save to the extent otherwise expressly provided, solely mechanical and administrative in nature.
|
(i)
|
The Facility Agent shall provide to the Company within five Business Days of request (but no more frequently than once per calendar month), a list (which may be in electronic form) setting out the names of the Lenders as at the date of that request, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be delivered under or in connection with the Relevant Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by electronic mail or other electronic means
|
29.3
|
Role of the Bookrunners and the Arrangers
|
29.4
|
No Fiduciary Duties
|
(a)
|
Nothing in the Relevant Finance Documents constitutes the Facility Agent, any of the Arrangers or any L/C Bank as a trustee or fiduciary of any other person.
|
(b)
|
None of the Facility Agent, the Security Trustee, the Arrangers, any L/C Bank or any Ancillary Facility Lender shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.
|
29.5
|
Business with the Wider Group
|
29.6
|
Discretion of the Facility Agent and L/C Banks
|
(a)
|
The Facility Agent and each L/C Bank may rely on:
|
(i)
|
any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and
|
(ii)
|
any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.
|
(b)
|
The Facility Agent may assume, unless it has received notice to the contrary in its capacity as agent for the Lenders, that:
|
(i)
|
no Default has occurred (unless the Facility Agent has actual knowledge of a Default arising under Clause 26.2 (
Non-payment
);
|
(ii)
|
any right, power, authority or discretion vested in this Agreement upon any party, the Lenders or the Instructing Group has not been exercised; and
|
(iii)
|
any notice or request made by the Obligors’ Agent is made on behalf of and with the consent and knowledge of the Parent and all the Obligors.
|
(c)
|
The Facility Agent and each L/C Bank may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.
|
(d)
|
The Facility Agent and each L/C Bank may act in relation to the Relevant Finance Documents through its personnel and agents.
|
(e)
|
The Facility Agent may execute on behalf of any L/C Bank any Documentary Credit issued under this Agreement.
|
(f)
|
The Facility Agent may disclose to any other party to this Agreement any information it reasonably believes it has received as agent under this Agreement.
|
(g)
|
Without prejudice to the generality of paragraph (f) above, the Facility Agent may disclose the identity of a Defaulting Lender to the other Relevant Finance Parties and the Company and shall disclose the same upon the written request of the Company or the Instructing Group.
|
(h)
|
Notwithstanding any other provision of any Relevant Finance Document to the contrary, none of the Facility Agent, the Arranger or the bank is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.
|
29.7
|
Instructing Group Instructions
|
(a)
|
Unless a contrary indication appears in a Relevant Finance Document, the Facility Agent shall (i) act in accordance with any instructions given to it by the Instructing Group or Revolving Facility Instructing Group, as applicable (or, if so instructed by the Instructing Group or Revolving Facility Instructing Group, as applicable, refrain from acting or exercising any right, power, authority or discretion vested in it as Facility Agent) and (ii) shall not be liable to any Relevant Finance Party for any act (or omission) if it acts (or refrains from taking any action) in accordance with such an instruction of the Instructing Group.
|
(b)
|
Unless a contrary indication appears in a Relevant Finance Document, any instructions given by (i) the Instructing Group will be binding on all the Relevant Finance Parties (provided that where the Instructing Group refers only to more than 50 per cent. of Lenders under a single Facility, such instructions should only be binding on the Lenders under that Facility) or (ii) a Revolving Facility Instructing Group will be binding on all the Lenders under the Revolving Facility.
|
(c)
|
The Facility Agent may refrain from acting in accordance with the instructions of the Instructing Group, a Revolving Facility Instructing Group, or, if appropriate, the Lenders until it has received such security or collateral as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with such instructions.
|
(d)
|
In the absence of instructions from the Instructing Group, a Revolving Facility Instructing Group, or, if appropriate, the Lenders, the Facility Agent may act (or refrain from taking action) as it considers to be in the best interests of the Lenders.
|
(e)
|
The Facility Agent shall not be authorised to act on behalf of a Lender in any legal or arbitration proceedings relating to any Relevant Finance Document without first obtaining the Lender’s consent to do so. This paragraph (e) shall not apply to any legal or arbitration proceeding relating to the perfection, presentation or protection of rights under the Security Documents or enforcement of the Security or Security Documents.
|
29.8
|
No Responsibility
|
(a)
|
responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by any Relevant Finance Party or an Obligor or any other person in or in connection with any Relevant Finance Document;
|
(b)
|
responsible for the legality, validity, effectiveness, adequacy or enforceability of any Relevant Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Relevant Finance Document; or
|
(c)
|
responsible for any determination as to whether any information provided or to be provided to any Relevant Finance Party is non public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.
|
29.9
|
Exclusion of Liability
|
(a)
|
Without limiting paragraph (b) below (and without prejudice to the provisions of Clause 32.8(e) (
Disruption to Payment Systems
), the Facility Agent, any L/C Bank or any Ancillary Facility Lender will not be liable to any Relevant Finance Party for any action taken by it under or in connection with any Relevant Finance Document, unless directly caused by its negligence or wilful misconduct.
|
(b)
|
No party to this Agreement (other than any Agent, L/C Bank or Ancillary Facility Lender (as applicable)) may take any proceedings, or assert or seek to assert any
|
(c)
|
The Facility Agent will not be liable for any failure to notify any person of any matter referred to in Clause 14.7 (
Notification
) or any delay (or any related consequences) in crediting an account with an amount required under the Relevant Finance Documents to be paid by it if it has taken all reasonable steps to comply with Clause 14.7 (
Notification
) and taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by it for that purpose.
|
29.10
|
Lender’s Indemnity
|
29.11
|
Resignation
|
(a)
|
The Facility Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor Facility Agent by giving notice to the Lenders and the Company.
|
(b)
|
The Facility Agent may resign without having designated a successor as agent under paragraph (a) above (and shall do so if so required by the Instructing Group) by giving 30 days notice to the Lenders and the Company, in which case the Instructing Group may appoint a successor Facility Agent (acting through an office in the United Kingdom), approved by the Company, acting reasonably. If the Instructing Group has not appointed a successor Facility Agent in accordance with this paragraph (b) within 30 days after notice of resignation was given, the Facility Agent may appoint a successor Facility Agent (acting through an office in the United Kingdom), approved by the Company, acting reasonably.
|
(c)
|
Provided no Default is outstanding, the Company may, by notice to the Facility Agent, require the Facility Agent to resign by giving five Business Days’ notice. In this event, the Facility Agent shall resign and the Company shall appoint a successor Facility Agent (without any Lender’s consent but the successor Facility Agent shall notify the Lenders of its appointment). The Company may exercise such right to replace the Facility Agent twice during the life of the Facilities.
|
(d)
|
The retiring Facility Agent shall, at the Borrowers’ cost, make available to its successor such documents and records and provide such assistance as its successor may reasonably request for the purposes of performing its functions as Facility Agent under the Relevant Finance Documents.
|
(e)
|
The resignation notice of the Facility Agent shall only take effect upon the appointment of a successor Facility Agent.
|
(f)
|
Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further obligation in respect of the Relevant Finance Documents but shall remain entitled to the benefit of this Clause 29 (
Role of the Facility Agent, the Arrangers, the L/C Banks and Others
). The Facility Agent’s successor and each of the other parties to this Agreement shall have the same rights and obligations amongst themselves as they would have had if such successor Facility Agent had been an original party as Facility Agent.
|
(g)
|
If requested by the Company by written notice to the Facility Agent, the Facility Agent shall resign in accordance with this Clause 29.11 (
Resignation
) if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to the Facility Agent under the Finance Documents the Facility Agent notifies the Company that the Facility Agent will cease to be a FATCA Exempt Party on or after that FATCA Application Date and (in each case) the Company reasonably believes that a Party would be required to make a deduction on account of FATCA that would not be required if the Facility Agent were a FATCA Exempt Party.
|
29.12
|
Confidentiality
|
(a)
|
The Facility Agent (in acting as agent for the Relevant Finance Parties) shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.
|
(b)
|
If information is received by another division or department of the Facility Agent it may be treated as confidential to that division or department and the Facility Agent shall not be deemed to have notice of it.
|
(c)
|
Notwithstanding any other provision of any Relevant Finance Document to the contrary, the Relevant Finance Parties are not obliged to disclose to any other person (i) any confidential information or (ii) any other information if the disclosure would, or might in its reasonable opinion, constitute a breach of any Law.
|
29.13
|
Facility Office
|
29.14
|
Credit Appraisal by the Lenders
|
(a)
|
the financial condition, status and nature of each member of the Group;
|
(b)
|
the legality, validity, effectiveness, adequacy or enforceability of any Relevant Finance Document and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Relevant Finance Document;
|
(c)
|
whether that Lender has recourse, and the nature and extent of that recourse, against any party or any of its respective assets under or in connection with any Relevant Finance Document, the transactions contemplated by the Relevant Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Relevant Finance Document;
|
(d)
|
the adequacy, accuracy and/or completeness of any information provided by the Facility Agent, the Bookrunners, the Arrangers or by any other person under or in connection with any Relevant Finance Document, the transactions contemplated by the Relevant Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Relevant Finance Document; and
|
(e)
|
the right or title of any person in or to, or the value or sufficiency of any part of the Security, the priority of any of the Security or the existence of any Security Interests affecting the Security.
|
29.15
|
Deduction from Amounts Payable by the Facility Agent
|
29.16
|
Obligors’ Agent
|
(a)
|
The Parent and each Obligor (other than the Company) irrevocably authorises the Company to act on its behalf as its agent in relation to the Relevant Finance Documents and irrevocably authorises:
|
(i)
|
the Company on its behalf to supply all information concerning itself, its financial condition and otherwise to the relevant persons contemplated under this Agreement and to give all notices and instructions, (including, in the case of a Borrower, Utilisation Requests) to execute on its behalf any Relevant Finance Document and to enter into any agreement in connection with the Relevant Finance Documents notwithstanding that the same may affect the Parent or such Obligor, without further reference to or the consent of the Parent or such Obligor; and
|
(ii)
|
each Relevant Finance Party to give any notice, demand or other communication to be given to or served on the Parent or such Obligor pursuant to the Relevant Finance Documents to the Company on its behalf,
|
(b)
|
Every act, omission, agreement, undertaking, settlement, waiver, notice or other communication given or made by the Obligors’ Agent under any Relevant Finance Document, or in connection with this Agreement (whether or not known
|
29.17
|
Co-operation with the Facility Agent
|
(a)
|
Each Lender and each Obligor will co-operate with the Facility Agent to complete any legal requirements imposed on the Facility Agent in connection with the performance of its duties under this Agreement and shall supply any information requested by the Facility Agent in connection with the proper performance of those duties provided that neither the Parent nor any Obligor shall be under any obligation to provide any information the supply of which would be contrary to any confidentiality obligation binding on any member of the Group or prejudice the retention of legal privilege in such information and provided further that neither the Parent nor any Obligor shall (and the Company shall procure that no member of the Bank Group shall) be able to deny the Facility Agent any such information by reason of it having entered into a confidentiality undertaking which would prevent it from disclosing, or be able to claim any legal privilege in respect of, any financial information relating to itself or the Group.
|
(b)
|
Any Lender may by notice to the Facility Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Relevant Finance Documents. Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 39.5 (
Electronic Communication
) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 39.2 (
Giving of Notice
) and Clause 39.5(a)(iii) (
Electronic Communication
) and the Facility Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.
|
29.18
|
Accession documents
|
29.19
|
Security Trustee
|
(a)
|
Following the Closing Date, the Security Trustee may be replaced with the Bank of Nova Scotia (or one of its Affiliates) as a successor Security Trustee in accordance with the provisions of the Security Trust Agreement, the HYD Intercreditor Agreement and the Group Intercreditor Agreement (together the “
Relevant Trustee Documents
”), as follows.
|
(b)
|
Upon five Business Days’ notice to the Security Trustee by the Company delivered anytime within six months of the Closing Date, the Security Trustee hereby agrees to give notice of resignation under clause 5.1 (
Resignation of Security Trustee
) of the Security Trust Agreement and to use its reasonable commercial efforts (at the cost of the Company) to resign in accordance with the provisions of the Relevant Trustee Documents.
|
(c)
|
If the Security Trustee gives notice of its resignation under clause 5.1 (
Resignation of Security Trustee
) of the Security Trust Agreement, each Lender hereby gives its consent, under clause 5.3 (
Successor Security Trustee
) of the Security Trust Agreement, to the appointment of Bank of Nova Scotia (or one of its Affiliates) as a successor Security Trustee in accordance with the provisions of the Relevant Trustee Documents.
|
30.
|
BORROWERS’ INDEMNITIES
|
30.1
|
General Indemnities
|
(a)
|
each of the Relevant Finance Parties against any out-of-pocket cost, claim, loss, expense (including legal fees) or liability, which any of them may sustain or incur as a consequence of the occurrence of any Default; and
|
(b)
|
each Lender against any out-of-pocket loss it may suffer or incur as a result of (i) its funding or making arrangements to fund its portion of an Advance or (ii) its issuing or making arrangements to issue a Documentary Credit or (iii) its funding or making arrangements to fund any Ancillary Facility made available by it, in each case requested by any Borrower under this Agreement but not made by reason of the operation of any one or more of the provisions of this Agreement (save as a result of such Lender’s own gross negligence or wilful default).
|
30.2
|
Break Costs
|
(a)
|
A Borrower shall, within 10 Business Days of demand by a Relevant Finance Party, pay to that Relevant Finance Party its Break Costs attributable to all or any part of any Advance or Unpaid Sum being paid by that Borrower on a day other than the last day of an Interest Period or Term for that Advance or Unpaid Sum.
|
(b)
|
Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period or Term in which they accrue.
|
31.
|
CURRENCY OF ACCOUNT
|
31.1
|
Currency
|
(a)
|
each repayment of any Outstandings or Unpaid Sum (or part of it) shall be made in the currency in which those Outstandings or Unpaid Sum are denominated on their due date;
|
(b)
|
interest shall be payable in the currency in which the sum in respect of which such interest is payable was denominated when that interest accrued;
|
(c)
|
each payment in respect of costs and expenses shall be made in the currency in which the same were incurred; and
|
(d)
|
each payment pursuant to Clause 17.3 (
Tax Indemnity
) or Clause 18.1 (
Increased Costs
) shall be made in the currency specified by the Relevant Finance Party claiming under it, acting reasonably.
|
31.2
|
Currency Indemnity
|
(a)
|
If any sum due from an Obligor under the Relevant Finance Documents (a “
Sum
”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “
First Currency
”) in which that Sum is payable into another currency (the “
Second Currency
”) for the purpose of:
|
(i)
|
making or filing a claim or proof against that Obligor;
|
(ii)
|
obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,
|
(b)
|
that Obligor shall as an independent obligation, within 10 Business Days of demand, indemnify each Relevant Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including
|
(c)
|
Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Relevant Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.
|
32.
|
PAYMENTS
|
32.1
|
Payment to the Facility Agent
|
32.2
|
Distributions by the Facility Agent
|
32.3
|
Clear Payments
|
32.4
|
Impaired Agent
|
(a)
|
If, at any time, the Facility Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Relevant Finance Documents to the Facility Agent in accordance with Clause 32.1 (
Payment to
|
(b)
|
All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the beneficiaries of that trust account
pro rata
to their respective entitlements.
|
(c)
|
A party which has made a payment in accordance with this Clause 32.4 (
Impaired Agent
) shall be discharged of the relevant payment obligation under the Relevant Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.
|
(d)
|
Promptly upon the appointment of a successor Facility Agent in accordance with Clause 29.11 (
Resignation
), each Party which has made a payment to a trust account in accordance with this Clause 32.4 (
Impaired Agent
) shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Facility Agent for distribution in accordance with this Agreement.
|
32.5
|
Partial Payments
|
(a)
|
first, in payment in or towards payment
pro rata
of any unpaid fees, costs and expenses incurred by the Facility Agent, the Security Trustee and each L/C Bank under the Relevant Finance Documents;
|
(b)
|
secondly, in or towards payment
pro rata
of any accrued interest or commission due but unpaid under any Relevant Finance Document;
|
(c)
|
thirdly, in or towards payment
pro rata
of any principal due but unpaid under any Relevant Finance Document; and
|
(d)
|
fourthly, in or towards payment
pro rata
of any other sum due but unpaid under the Relevant Finance Documents,
|
32.6
|
Indemnity
|
32.7
|
Notification of Payment
|
32.8
|
Disruption to Payment Systems
|
(a)
|
the Facility Agent may, and shall if requested to do so by the Company, consult with the Company with a view to agreeing with the Company such changes to the operation or administration of the Facilities as the Facility Agent may deem reasonably necessary in the circumstances;
|
(b)
|
the Facility Agent shall not be obliged to consult with the Company in relation to any changes mentioned in paragraph (a) above if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;
|
(c)
|
the Facility Agent may consult with the Relevant Finance Parties in relation to any changes mentioned in paragraph (a) above but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;
|
(d)
|
any such changes agreed upon by the Facility Agent and the Company shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Relevant Finance Parties as an amendment to (or, as the case may be, waiver of) the terms of the Relevant Finance Documents notwithstanding the provisions of Clause 42 (
Amendments
);
|
(e)
|
the Facility Agent shall not be liable for any damages, costs or losses whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Facility Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 32.8 (
Disruption to Payment Systems
); and
|
(f)
|
the Facility Agent shall notify the Relevant Finance Parties of all changes agreed pursuant to paragraph (d) above.
|
32.9
|
Business Days
|
(a)
|
Any payment which is due to be made on a day that is not a Business Day shall be made on the immediately succeeding Business Day in the same calendar month (if there is one) or the immediately preceding Business Day (if there is not).
|
(b)
|
During any extension of the due date for payment of any principal or an Unpaid Sum under this Agreement, interest is payable on such amount at the rate payable on the original due date.
|
33.
|
SET-OFF
|
33.1
|
Right to Set-off
|
(a)
|
A Relevant Finance Party may set off any matured obligation due from an Obligor under the Relevant Finance Documents (to the extent beneficially owned by that Relevant Finance Party) against any matured obligation owed by that Relevant Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Relevant Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.
|
(b)
|
Any credit balances taken into account by an Ancillary Facility Lender when operating a net limit in respect of any overdraft under an Ancillary Facility shall on enforcement of the Relevant Finance Documents be applied first in the
|
33.2
|
No Obligation
|
34.
|
SHARING AMONG THE RELEVANT FINANCE PARTIES
|
34.1
|
Payments to Relevant Finance Parties
|
(a)
|
the Recovering Relevant Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Facility Agent;
|
(b)
|
the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Relevant Finance Party would have been paid had the receipt or recovery been received or made by the Facility Agent and distributed in accordance with Clause 32.5 (
Partial Payments
), without taking account of any tax which would be imposed on the Facility Agent in relation to the receipt, recovery or distribution; and
|
(c)
|
the Recovering Relevant Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the “
Sharing Payment
”) equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the Recovering Relevant Finance Party as its share of any payment to be made, in accordance with Clause 32.5 (
Partial Payments
).
|
34.2
|
Redistribution of Payments
|
34.3
|
Recovering Relevant Finance Party’s Rights
|
34.4
|
Reversal of Redistribution
|
(a)
|
each Relevant Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 34.2 (
Redistribution of Payments
) shall, upon the request of the Facility Agent, pay to the Facility Agent for account of that Recovering Relevant Finance Party an amount equal to its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Relevant Finance Party for its share of any interest on the Sharing Payment which that Recovering Relevant Finance Party is required to pay); and
|
(b)
|
that Recovering Relevant Finance Party’s rights of subrogation in respect of any reimbursement shall be cancelled and the Parent or the relevant Obligor will be liable to the reimbursing Relevant Finance Party for the amount so reimbursed.
|
34.5
|
Exceptions
|
(a)
|
This Clause 34 (
Sharing among the Relevant Finance Parties
) shall not apply to the extent that the Recovering Relevant Finance Party would not, after making any payment pursuant to this Clause 34 (
Sharing among the Relevant Finance Parties
), have a valid and enforceable claim against the Parent or the relevant Obligor.
|
(b)
|
A Recovering Relevant Finance Party is not obliged to share with any other Relevant Finance Party under this Clause 34 (
Sharing among the Relevant Finance Parties
), any amount which the Recovering Relevant Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:
|
(i)
|
it notified such other Relevant Finance Party of the legal or arbitration proceedings; and
|
(ii)
|
such other Relevant Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice of it or did not take separate legal or arbitration proceedings.
|
34.6
|
Ancillary Facility Lenders
|
(a)
|
This Clause 34 (
Sharing among the Relevant Finance Parties
) shall not apply to any receipt or recovery by a Lender in its capacity as an Ancillary Facility Lender at any time prior to service of notice under Clause 26.19 (
Acceleration
).
|
(b)
|
Following service of notice under Clause 26.19 (
Acceleration
), this Clause 34 (
Sharing among the Relevant Finance Parties
) shall apply to all receipts or recoveries by Ancillary Facility Lenders except to the extent that the receipt or recovery represents a reduction from the Designated Gross Amount for an Ancillary Facility to its Designated Net Amount.
|
35.
|
CALCULATIONS AND ACCOUNTS
|
35.1
|
Day Count Convention
|
35.2
|
Reductions
|
35.3
|
Role of Reference Banks and Alternative Reference Banks
|
(a)
|
No Reference Bank or Alternative Reference Bank is under any obligation to provide a quotation or any other information to the Facility Agent.
|
(b)
|
No Reference Bank or Alternative Reference Bank will be liable for any action taken by it or in connection with any Finance Document, or for any Reference Bank Quotation, unless directly caused by its gross negligence or wilful misconduct.
|
(c)
|
No Party (other than the relevant Reference Bank or Alternative Reference Bank) may take any proceedings against any officer, employee or agent of any Reference Bank or Alternative Reference Bank in respect of any claim it might have to make against that Reference Bank or Alternative Reference Bank or in respect of any act or omission of any kind by that office, employee or agent in relation to any Finance Document, or to any Reference Bank Quotation, and any officer, employee or agent of each Base Reference Bank or Alternative Reference Bank
|
35.4
|
Third party Reference Banks and Alternative Reference Banks
|
35.5
|
Maintain Accounts
|
35.6
|
Control Accounts
|
(a)
|
the amount and the Sterling Amount of any Advance or Unpaid Sum and the face amount and the Sterling Amount of any Documentary Credit, and each Lender’s share in it;
|
(b)
|
the Sterling Amount of the Ancillary Facility Commitment (if any) of each Lender;
|
(c)
|
the amount of all principal, interest and other sums due or to become due from each of the Obligors to any of the Lenders under the Relevant Finance Documents and each Lender’s share in it; and
|
(d)
|
the amount of any sum received or recovered by the Facility Agent under this Agreement and each Lender’s share in it.
|
35.7
|
Prima Facie Evidence
|
35.8
|
Certificate of Relevant Finance Party
|
35.9
|
Certificate of the Facility Agent
|
35.10
|
Certificate of L/C Bank
|
36.
|
ASSIGNMENTS AND TRANSFERS
|
36.1
|
Successors and Assignees
|
36.2
|
Resignation of a Borrower
|
(a)
|
With the prior consent of the Instructing Group, the Company may request that a Borrower ceases to be a Borrower by delivering to the Facility Agent a Resignation Letter.
|
(b)
|
The Facility Agent shall accept a Resignation Letter and notify the Company and the other Relevant Finance Parties of its acceptance if:
|
(i)
|
the Company has confirmed that no Event of Default is continuing or would result from the acceptance of the Resignation Letter;
|
(ii)
|
the relevant Borrower is under no actual or contingent obligations as a Borrower under any Relevant Finance Documents; and
|
(iii)
|
where the relevant Borrower is also a Guarantor, its obligations in its capacity as Guarantor continue to be legal, valid, binding and enforceable and in full force and effect (subject to any relevant reservations or qualifications contained in any legal opinion referred to in Clause 21.4
|
(c)
|
Upon notification by the Facility Agent to the Company of its acceptance of the resignation of the relevant Borrower, that company shall cease to be a Borrower and shall have no further rights or obligations under the Relevant Finance Documents as a Borrower.
|
(d)
|
The Facility Agent may, at the cost and expense of the Company, require a legal opinion from counsel confirmed the matters set out in paragraph (b)(iii) above and the Facility Agent shall be under no obligation to accept a Resignation Letter until it has obtained such opinion in form and substance reasonably satisfactory to it.
|
36.3
|
Assignment or Transfers by Borrowers
|
(a)
|
the Parent;
|
(b)
|
any Permitted Affiliate Parent (as applicable) if the Parent delivers to the Facility Agent:
|
(i)
|
a solvency opinion, in form and substance reasonably satisfactory to the Facility Agent, from an independent financial advisor confirming the solvency of the Bank Group, taken as a whole, after giving effect to any transactions related to such assignment or transfer; and
|
(ii)
|
legal opinions, in form and substance reasonably satisfactory to the Facility Agent, confirming that, after giving effect to any transactions related to such assignment or transfer, the Security as amended, extended, renewed, restated, supplemented, modified or replaced represents valid and perfected Security Interests not otherwise subject to any limitation, imperfection or new hardening period, in equity or at law, that such Security Interests were not otherwise subject to immediately prior to such assignment or transfer.
|
36.4
|
Assignments or Transfers by Lenders
|
(a)
|
Subject to the other provisions of this Clause 36.4 (
Assignments or Transfers by Lenders
), any Lender may, at any time, assign all or any of its rights and benefits under the Relevant Finance Documents in accordance with Clause 36.5 (
Assignments
) or transfer all or any of its rights, benefits and obligations under the Relevant Finance Documents to any person (a “
New Lender
”) in accordance with Clause 36.6 (
Transfer
Deed
) provided that:
|
(i)
|
the prior written consent of the Company is received in respect of any assignment or transfer, such consent not to be unreasonably withheld, provided that:
|
(A)
|
such consent shall be deemed to have been given if not declined in writing within five Business Days of a written request by any Lender to the Company;
|
(B)
|
no consent shall be required in the case of any assignment or transfer by a Lender to another Lender and/or to its Affiliate (or in the case of any Lender which constitutes a fund advised and/or managed by a common entity or an Affiliate thereof, to any other fund managed by such common entity or Affiliate) which (other than in the case of any Facility in relation to the US Borrower) is a Qualifying UK Lender; and
|
(C)
|
no consent shall be required in the case of any assignment or transfer to any New Lender at any time after the occurrence of an Event of Default which is continuing; and
|
(ii)
|
the New Lender makes one of the representations set out in paragraph 8 of the Transfer Deed and provides the Company with the information required under paragraph 9 of the Transfer Deed or paragraph 3 of Annex 1 to the Transfer Agreement unless the New Lender is only participating in a Facility denominated in Dollars.
|
(b)
|
Notwithstanding any other provision of this Agreement, no Lender shall be entitled to assign or transfer any of its rights, benefits or obligations under the Finance Documents in relation to the Revolving Facility without the prior written consent of the Company, provided that no such consent shall be required in the case of any assignment or transfer:
|
(i)
|
by a Lender to another Lender under the Revolving Facility and/or to its Affiliate (or in the case of any Lender which constitutes a fund advised
|
(ii)
|
to any New Lender at any time after the occurrence of an Event of Default which is continuing.
|
(c)
|
No Lender shall be entitled to:
|
(i)
|
effect any assignment or transfer:
|
(A)
|
in respect of any portion of its Commitment and/or Outstandings under any individual Facility in an amount of less than £1,000,000, $1,000,000 or €1,000,000 (in the case of participations in Advances denominated in Sterling, Dollars or euro respectively) (or its equivalent as at the date of such assignment or transfer) unless its Commitment and Outstandings under any Facility is less than such amount, in which case it shall be permitted to transfer its entire Commitment and Outstandings for such Facility;
|
(B)
|
which would result in it or the proposed assignee or transferee holding an aggregate participation of more than zero but less than £1,000,000 (or its equivalent as at the date of such assignment or transfer) in the Facilities, save that an assignment or transfer may be made to or by a trust, fund or other non-bank entity which customarily participates in the institutional market which would result in such entity holding an aggregate participation of at least £1,000,000, $1,000,000 or €1,000,000 (in the case of participations in Advances denominated in Sterling, Dollars or euro respectively) in the Facilities; or
|
(C)
|
in relation to its participation in the Revolving Facility other than to the extent such transfers and assignments are on a
pro rata
basis as between the relevant Lender’s Commitment under and participation in Outstandings under the Revolving Facility;
|
(ii)
|
in relation to any sub-participation of its rights and obligations under the Facilities, relinquish some or all of its voting rights in respect of the Facilities to any person in respect of any such sub-participation other than voting rights in respect of the matters referred to in Clause 42.2(b), (c), (d) or (e) (
Consents
); or
|
(iii)
|
effect any assignment or transfer of any Facility in relation to which the relevant Borrower is a UK Borrower to a person who is not a Qualifying UK Lender.
|
(d)
|
For the purposes of satisfying the minimum hold requirement set out in paragraph (b)(i) above, any participations held by funds advised and/or managed by a common entity or an Affiliate thereof may be aggregated.
|
(e)
|
Notwithstanding any other provision of this Agreement, the consent of each L/C Bank shall be required (such consent not to be unreasonably withheld or delayed) for any assignment or transfer of any Lender’s rights and/or obligations under the Revolving Facility provided that in relation to any assignment or transfer required by the Company under Clause 10.4 (
Right of Repayment and Cancellation in Relation to a Single Lender
) or Clause 42.14 (
Replacement of Lenders
), an L/C Bank may not withhold such consent unless, acting reasonably, the reason for so doing relates to the creditworthiness of the proposed New Lender.
|
(f)
|
Notwithstanding any other provision of this Clause 36.4 (
Assignments or Transfers by Lenders
), no assignment or transfer shall be permitted to settle or otherwise become effective within the period of five Business Days prior to (i) the end of any Interest Period or (ii) any Repayment Date.
|
(g)
|
Each New Lender, by executing the relevant Transfer Deed or Transfer Agreement, confirms, for the avoidance of doubt, that the Facility Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the transferring Lender would have been had it remained a Lender.
|
36.5
|
Assignments
|
(a)
|
Unless such assignment or transfer is effected by a Transfer Agreement pursuant to Clause 36.7 (
Transfer Agreements
), if any Lender wishes to assign all or any of its rights and benefits under the Relevant Finance Documents, unless and until the relevant assignee has agreed with the other Relevant Finance Parties that it shall be under the same obligations towards each of them as it would have been under if it had been an original party to the Relevant Finance Documents as a Lender, such assignment shall not become effective and the other Relevant Finance Parties shall not be obliged to recognise such assignee as having the rights against each of them which it would have had if it had been such a party to this Agreement.
|
(b)
|
Without limiting any right or discretion of the Facility Agent under the Relevant Finance Documents, the Facility Agent may in its discretion stop processing assignments or transfers under this Clause 36 (
Assignments and Transfers
) when a notice of prepayment has been received by it under this Agreement, for a period of five Business Days prior to the date the prepayment is required or expected to be made.
|
36.6
|
Transfer Deed
|
(a)
|
If any Lender wishes to transfer all or any of its rights, benefits and/or obligations under the Relevant Finance Documents, such transfer may be effected by novation through the delivery to the Facility Agent of a duly completed and duly executed Transfer Deed. Any assignment or transfer of rights, benefits and/or obligations under the Relevant Finance Documents may also be effected through the delivery to the Facility Agent of a duly completed and duly executed Transfer Agreement in accordance with Clause 36.7 (
Transfer Agreements
).
|
(b)
|
The Facility Agent shall only be obliged to execute a Transfer Deed or Transfer Agreement delivered to it pursuant to paragraph (a) above, upon its satisfaction with the results of all “know your client” or other applicable anti-money laundering checks relating to the identity of any person that it is required to carry out in relation to such New Lender.
|
(c)
|
Upon its execution of the Transfer Deed or Transfer Agreement pursuant to paragraph (b) above on the later of the Transfer Date specified in such Transfer Deed or Transfer Agreement and the fifth Business Day after (or such earlier Business Day endorsed by the Facility Agent on such Transfer Deed or Transfer Agreement falling on or after) the date of execution of such Transfer Deed or Transfer Agreement by the Facility Agent:
|
(i)
|
to the extent that in such Transfer Deed or Transfer Agreement the Lender party to it seeks to transfer its rights, benefits and obligations under the Relevant Finance Documents, the Parent, each of the Obligors and such Lender shall be released from further obligations towards one another under the Relevant Finance Documents to that extent and their respective rights against one another shall be cancelled to that extent (such rights and obligations being referred to in this Clause 36.6 (
Transfer Deed
) as
“discharged rights and obligations”
);
|
(ii)
|
the Parent, each of the Obligors and the New Lender party to it shall assume obligations towards one another and/or acquire rights against one another which differ from the discharged rights and obligations only insofar as the Parent, such Obligor and such New Lender have assumed
|
(iii)
|
the other Relevant Finance Parties and the New Lender shall acquire the same rights and benefits and assume the same obligations between themselves as they would have acquired and assumed had such New Lender been an original party to the Relevant Finance Documents as a Lender with the rights, benefits and obligations acquired or assumed by it as a result of such transfer and to that extent the Facility Agent, the Arranger, the Security Trustee, each L/C Bank and any relevant Ancillary Facility Lender and the Lender which has transferred its rights, benefits and obligations shall each be released from further obligations to each other under the Relevant Finance Documents; and
|
(iv)
|
all payments due hereunder from the Parent or any Obligor shall be due and payable to such New Lender and not to the transferring Lender; and
|
(d)
|
such New Lender shall become a party to this Agreement as a Lender.
|
36.7
|
Transfer Agreements
|
(a)
|
Subject to the other provisions of this Clause 36 (
Assignments and Transfers
), a Lender may effect an assignment or transfer of an interest in any Facility by (i) executing and delivering to the Facility Agent a Transfer Agreement via an electronic settlement system acceptable to the Facility Agent or (ii) if previously agreed with the Facility Agent, manually execute and deliver to the Facility Agent a Transfer Agreement, and the assignee shall provide to the Facility Agent such information as may be required by the Facility Agent for the purposes of this Agreement (including any applicable tax forms) in which the assignee shall designate one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Obligors and their Affiliates or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including U.S. federal and state securities laws.
|
(b)
|
By executing and delivering a Transfer Agreement, the assigning Lender thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and the other parties hereto the representations set out in paragraph 1 of Annex 1 to the Transfer Agreement.
|
(c)
|
Upon its receipt of a duly completed Transfer Agreement executed by an assigning Lender and an assignee, the transfer fee referred to in Clause 36.9 (
Transfer Fee
) and, if required, the written consent of the Company to such assignment and any applicable tax forms, the Facility Agent shall (i) accept such
|
36.8
|
Limitation of Responsibility of Transferor
|
(a)
|
Unless expressly agreed to the contrary, a Lender which assigns or transfers its rights and/or obligations under any Relevant Finance Document (a
“Transferor”
) makes no representation or warranty and assumes no responsibility to a New Lender for:
|
(i)
|
the legality, validity, effectiveness, adequacy or enforceability of the Relevant Finance Documents, the Security or any other documents;
|
(ii)
|
the financial condition of any Obligor;
|
(iii)
|
the performance and observance by any Obligor or any other member of the Group of its obligations under the Relevant Finance Documents or any other document; or
|
(iv)
|
the accuracy of any statements (whether written or oral) made in or in connection with any Relevant Finance Document or any other document,
|
(b)
|
Each New Lender confirms to the Transferor and the other Relevant Finance Parties that it:
|
(i)
|
has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Transferor or any other Relevant Finance Party in connection with any Relevant Finance Document or the Security; and
|
(ii)
|
will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Relevant Finance Documents or any Commitment is in force.
|
(c)
|
Nothing in any Relevant Finance Document obliges a Transferor to:
|
(i)
|
accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 36 (
Assignments and Transfers
); or
|
(ii)
|
support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Relevant Finance Documents or otherwise.
|
36.9
|
Transfer Fee
|
36.10
|
Disclosure of Information
|
(a)
|
Each of the Facility Agent, the Security Trustee, the Bookrunners, the Arrangers, the Lenders, each L/C Bank and any Ancillary Facility Lender agrees to maintain the confidentiality of all information received from the Parent or any member of the Wider Group relating to the Parent or any member of the Wider Group or its business other than any such information that:
|
(i)
|
is or becomes public knowledge other than as a direct result of any breach of this Clause 36.10 (
Disclosure of Information
);
|
(ii)
|
is available to the Facility Agent, the Security Trustee, the Bookrunners, the Arrangers, the Lenders, each L/C Bank or such Ancillary Facility Lender on a non-confidential basis prior to receipt thereof from the relevant member of the Group; or
|
(iii)
|
is lawfully obtained by any of the Facility Agent, the Security Trustee, the Bookrunners, the Arrangers, the Lenders, each L/C Bank and any Ancillary Facility Lender after that date of receipt other than from a source which is connected with the Group and which, as far as the relevant recipient thereof is aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality.
|
(b)
|
Notwithstanding paragraph (a) above any Lender may disclose to any of its Affiliates, its or its Affiliates’ professional advisors, to any actual or potential assignee or New Lender, to any person who may otherwise enter into contractual relations with such Lender in relation to this Agreement or any person to whom, and to the extent that, information is required to be disclosed by any applicable Law, such information about the Parent, the Obligors, the Wider Group as a whole as such Lender shall consider appropriate (including any Relevant Finance
|
36.11
|
Disclosure to numbering service providers
|
(a)
|
Any Relevant Finance Party may disclose to any national or international numbering service provider appointed by that Relevant Finance Party to provide identification numbering services in respect of this Agreement, the Facilities and/or one or more Obligors the following information:
|
(i)
|
name of Obligors;
|
(ii)
|
country of domicile of Obligors;
|
(iii)
|
place of incorporation of Obligors;
|
(iv)
|
date of this Agreement;
|
(v)
|
the names of the Agent and the Arranger;
|
(vi)
|
date of each amendment and restatement of this Agreement;
|
(vii)
|
amount of Total Commitments;
|
(viii)
|
currencies of the Facilities;
|
(ix)
|
type of Facilities;
|
(x)
|
ranking of Facilities;
|
(xi)
|
Termination Date for Facilities;
|
(xii)
|
changes to any of the information previously supplied pursuant to paragraphs (i) to (xi) above; and
|
(xiii)
|
such other information agreed between such Relevant Finance Party and the Company, to enable such numbering service provider to provide its usual syndicated loan numbering identification service.
|
(b)
|
The Parties acknowledge and agree that such identification number assigned to this Agreement, the Facilities and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.
|
36.12
|
Disclosure to administration/settlement services providers
|
(a)
|
that Relevant Finance Party;
|
(b)
|
a person to (or through) whom that Relevant Finance Party assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Facility Agent or as any other agent or trustee under this Agreement; and/or
|
(c)
|
a person with (or through) whom that Relevant Finance Party enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made, or may be made, by reference to one or more Relevant Finance Documents and/or one or more Obligors,
|
36.13
|
No Increased Obligations
|
(a)
|
a Lender assigns or transfers any of its rights or obligations under the Relevant Finance Documents or changes its Facility Office; and
|
(b)
|
as a result of circumstances existing at the date of the assignment, transfer or change of Facility Office, the Parent or an Obligor would be obliged to make a payment to the assignee, New Lender or the Lender acting through its new Facility Office under Clause 17.1 (
Tax Gross-up
), Clause 17.3 (
Tax Indemnity
) or Clause 18 (
Increased Costs
),
|
36.14
|
Copy of Transfer Deed, Transfer Agreement or Increase Confirmation to Company
|
36.15
|
The Register
|
(a)
|
The Facility Agent, acting for this purpose as the agent of the Obligors, shall maintain at its address:
|
(i)
|
each Transfer Deed or Transfer Agreement referred to in Clause 36.6 (
Transfer Deed
) and each Increase Confirmation delivered to and accepted by it; and
|
(ii)
|
a register for the recording of the names and addresses of the Lenders and the Commitment of, and principal amount owing to, each Lender from time to time (the “
Register
”) under the Facility, which may be kept in electronic form.
|
(b)
|
Each party to this Agreement irrevocably authorises the Facility Agent to make the relevant entry in the Register (and which the Facility Agent shall do promptly) on its behalf for the purposes of this Clause 36.15 (
The Register
) without any further consent of, or consultation with, such Party.
|
(c)
|
The Facility Agent shall, upon request by a Lender or a New Lender, confirm to that Lender or New Lender whether a transfer or assignment from that Lender or (as the case may be) to that New Lender has been recorded on the Register (including details of the Commitment of that Lender or New Lender in the Facility).
|
36.16
|
Security Over Lenders’ Rights
|
(a)
|
any charge, assignment or other Security to secure obligations to a government authority, department or agency including HM Treasury as well as a federal reserve or central bank; and
|
(b)
|
in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,
|
(i)
|
release a Lender from any of its obligations under the Relevant Finance Documents or substitute the beneficiary of the relevant charge, assignment or other Security for the Lender as a party to any of the Relevant Finance Documents; or
|
(ii)
|
require any payments to be made by an Obligor or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Relevant Finance Documents.
|
36.17
|
Pro rata
Interest Settlement
|
(a)
|
any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Transferor up to but excluding the date of transfer (
“Accrued Amounts”
) and shall become due and payable to the Transferor (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six months, on the next of the dates which falls at six monthly intervals after the first day of that Interest Period); and
|
(b)
|
the rights assigned or transferred by the Transferor will not include the right to the Accrued Amounts so that, for the avoidance of doubt:
|
(i)
|
when the Accrued Amounts become payable, those Accrued Amounts will be payable for the account of the Transferor; and
|
(ii)
|
the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause 36.17 (
Pro rata Interest Settlement
), have been payable to it on that date, but after deduction of the Accrued Amounts.
|
36.18
|
Notification
|
36.19
|
Debt Purchase
|
(a)
|
For so long as:
|
(i)
|
a VMIH Affiliate beneficially owns a Commitment (whether drawn or undrawn); or
|
(ii)
|
has entered into a sub-participation agreement relating to a Commitment (whether drawn or undrawn) or other agreement or arrangement having a substantially similar economic effect and such agreement or arrangement has not been terminated,
|
(iii)
|
in determining whether the requisite level of consent has been obtained to approve any request for a consent, waiver, amendment or other vote under the Relevant Finance Documents such Commitment shall be deemed to be zero; and
|
(iv)
|
for the purposes of Clause 42.2 (
Consents
), such VMIH Affiliate or the person with whom it has entered into such sub-participation, other agreement or arrangement shall be deemed not to be a Lender.
|
37.
|
COSTS AND EXPENSES
|
37.1
|
Transaction Expenses
|
37.2
|
Amendment Costs
|
37.3
|
Enforcement Costs
|
37.4
|
Stamp Duties
|
37.5
|
Other indemnities
|
(a)
|
the occurrence of any Event of Default;
|
(b)
|
a failure by an Obligor to pay any amount due under a Relevant Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 34 (
Sharing among the Relevant Finance Parties
);
|
(c)
|
funding, or making arrangements to fund, its participation in an Advance requested by a Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Lender alone); or
|
(d)
|
an Advance (or part of an Advance) not being prepaid in accordance with a notice of prepayment given by a Borrower.
|
37.6
|
Indemnity to the Facility Agent
|
(a)
|
investigating any event which it reasonably believes is a Default; or
|
(b)
|
acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised.
|
37.7
|
Value Added Tax
|
(a)
|
All amounts expressed to be payable under any Relevant Finance Document by any Obligor to a Relevant Finance Party shall be exclusive of any VAT. If VAT is chargeable on any supply made by a Relevant Finance Party to any Obligor under any Relevant Finance Document (whether that supply is taxable pursuant to the exercise of an option or otherwise), the relevant Relevant Finance Party shall provide a VAT invoice to the Obligor and that Obligor shall pay to that Relevant Finance Party (in addition to and at the same time as paying that consideration) the VAT as further consideration.
|
(b)
|
No payment or other consideration to be made or furnished to any Obligor pursuant to or in connection with any Relevant Finance Document may be increased or added to by reference to (or as a result of any increase in the rate of) any VAT which shall be or may become chargeable in respect of any taxable supply.
|
(c)
|
Where a Relevant Finance Document requires any party to reimburse or indemnify a Relevant Finance Party for any cost or expense, that party shall reimburse or indemnify (as the case may be) such Relevant Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Relevant Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.
|
(d)
|
If VAT is or becomes chargeable on any supply made by any Relevant Finance Party (the “
Supplier
”) to any other Relevant Finance Party (the “
Recipient
”) under a Relevant Finance Document, and any party other than the Recipient (the “
Subject Party
”) is required by the terms of any Relevant Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse the Recipient in respect of that consideration), such party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT. The Recipient will promptly pay to the Subject Party an amount equal to any credit or repayment
|
(e)
|
Any reference in this Clause 37.7 (
Value Added Tax
) to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term “representative member” to have the same meaning as in the Value Added Tax Act 1994).
|
38.
|
REMEDIES AND WAIVERS
|
39.
|
NOTICES AND DELIVERY OF INFORMATION
|
39.1
|
Writing
|
39.2
|
Giving of Notice
|
39.3
|
Use of Websites/E-mail
|
(a)
|
An Obligor may (and upon request by the Facility Agent, shall) satisfy its obligations under this Agreement to deliver any information in relation to those Lenders (the
“Website Lenders”
) who have not objected to the delivery of information electronically by posting this information onto an electronic website designated by the Company and the Facility Agent (the
“Designated Website”
) or by e-mailing such information to the Facility Agent, if:
|
(i)
|
the Facility Agent expressly agree that they will accept communication and delivery of any documents required to be delivered pursuant to this Agreement by this method;
|
(ii)
|
in the case of posting to the Designated Website, the Company and the Facility Agent are aware of the address of, and any relevant password specifications for, the Designated Website; and
|
(iii)
|
the information is in a format previously agreed between the Company and the Facility Agent.
|
(b)
|
If any Lender (a
“Paper Form Lender”
) objects to the delivery of information electronically then the Facility Agent shall notify the Company accordingly and the Company shall supply the information to the Facility Agent (in sufficient copies for each Paper Form Lender) in paper form.
|
(c)
|
The Facility Agent shall supply each Website Lender with the address of, and any relevant password specifications for, the Designated Website following designation of that website by the Company and the Facility Agent.
|
(d)
|
Any Website Lender may request, through the Facility Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. The Company shall comply with any such request within 10 Business Days.
|
(e)
|
Subject to the other provisions of this Clause 39.3 (
Use of Websites/E-mail
), any Obligor may discharge its obligation to supply more than one copy of a document under this Agreement by posting one copy of such document to the Designated Website or e-mailing one copy of such document to the Facility Agent.
|
(f)
|
For the purposes of paragraph (a) above, the Facility Agent hereby expressly agree that:
|
(i)
|
they will accept delivery of documents required to be delivered under Clause 23.2 (
Financial information
) by the posting of such documents to the Designated Website or by email delivery to the Facility Agent; and
|
(ii)
|
they have agreed to the format of the information required to be delivered under Clause 23.2 (
Financial information
).
|
39.4
|
Public or Private Information
|
39.5
|
Electronic Communication
|
(a)
|
Any communication to be made between the Facility Agent and any Lender under or in connection with the Relevant Finance Documents may be made by electronic mail or other electronic means, if the relevant Agent and the relevant Lender:
|
(i)
|
agree that, unless and until notified to the contrary, this is to be an accepted form of communication;
|
(ii)
|
notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and
|
(iii)
|
notify each other of any change to their address or any other such information supplied by them.
|
(b)
|
Any electronic communication made between the Facility Agent and a Lender will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Facility Agent only if it is addressed in such a manner as the Facility Agent shall specify for this purpose.
|
39.6
|
Certificates of Officers
|
39.7
|
Patriot Act
|
39.8
|
Communication when Facility Agent is Impaired Agent
|
40.
|
ENGLISH LANGUAGE
|
41.
|
PARTIAL INVALIDITY
|
(a)
|
the legality, validity or enforceability of the remaining provisions of this Agreement; or
|
(b)
|
the legality, validity or enforceability of such provision under the Law of any other jurisdiction.
|
42.
|
AMENDMENTS
|
42.1
|
Amendments Generally
|
42.2
|
Consents
|
(a)
|
without prejudice to Clause 2.2 (
Increase
), any increase in the principal amount of any Commitment of such Lender;
|
(b)
|
a reduction in the proportion of any amount received or recovered (whether by way of set-off, combination of accounts or otherwise) in respect of any amount due from the Parent or any Obligor under this Agreement to which such Lender is entitled;
|
(c)
|
a decrease in any Margin for, or the principal amount of, any Advance, any Documentary Credit or any interest payment, fees or other amounts due under this Agreement to such Lender from the Parent or any Obligor or any other party to this Agreement;
|
(d)
|
any change in the currency of account (other than a change resulting from the United Kingdom becoming a Participating Member State);
|
(e)
|
unless otherwise specified the deferral of the date for payment of any principal, interest, fee or any other amount due under this Agreement to such Lender from the Parent or any Obligor or any other party to this Agreement;
|
(f)
|
the deferral of any Termination Date or Final Maturity Date;
|
(g)
|
any reduction to the percentage set forth in the definition of the Instructing Group; or
|
(h)
|
a change to this Clause 42.2 (
Consents
) and Clause 42.6 (
Guarantees and Security
).
|
42.3
|
Class Exception
|
(a)
|
relates only to the rights or obligations applicable to a particular Utilisation or Facility; and
|
(b)
|
does not materially and adversely affect the rights or interests of Lenders in respect of any other Utilisation or Facility,
|
42.4
|
Facility Agent
|
42.5
|
Technical and Operational Amendments
|
(a)
|
Notwithstanding any other provision of this Clause 42 (
Amendments
), the Facility Agent may at any time without the consent or sanction of the Lenders, concur with the Company in making any modifications to any Relevant Finance Document, which in the opinion of the Facility Agent would be proper to make provided that the Facility Agent is of the opinion that such modification:
|
(i)
|
would not be materially prejudicial to the position of any Lender and in the opinion of the Facility Agent such modification is of a formal, minor or technical nature or is to correct a manifest error;
|
(ii)
|
relates to the increase in the principal amount of a Commitment of a Lender in relation to any Facility and such increased Commitment has been requested by the Company to fund any original issue discount required to be paid to that Lender in relation to that Facility under any Finance Document; or
|
(iii)
|
is of a minor, operational or technical nature.
|
(b)
|
Any such modification shall be made on such terms as the Facility Agent may determine, shall be binding upon the Lenders, and shall be notified by the Company to the Lenders as soon as practicable thereafter.
|
(c)
|
Notwithstanding any other provision of this Clause 42 (
Amendments
) or in any Finance Document, an amendment or waiver of Clauses 22.2 (
Financial Ratio
) to Clause 22.4 (
Cure Provisions
) and Clause 26.20 (
Revolving Facility Acceleration
) shall be made only with the consent of the Company and the
|
42.6
|
Guarantees and Security
|
42.7
|
Release of Guarantees and Security
|
(a)
|
Subject to paragraph (b) below, at the time of completion of any disposal by the Parent, any Obligor or any other provider of Security of any shares, assets or revenues the Security Trustee shall (and it is hereby authorised by the other Relevant Finance Parties to) at the request of and cost of the relevant Obligor, execute such documents as may be required to:
|
(i)
|
release those shares, assets or revenues from Security constituted by any relevant Security Document or certify that any floating charge constituted by any relevant Security Documents over such assets, revenues or rights has not crystallised; and
|
(ii)
|
release any person which as a result of that disposal, ceases to be the Parent or any Obligor, from any guarantee, indemnity or Security Document to which it is a party and its other obligations under any other Relevant Finance Document.
|
(b)
|
The Security Trustee shall only be required under paragraph (a) above to grant the release of any Security or to deliver a certificate of non-crystallisation on account of a disposal as described in that paragraph if:
|
(i)
|
the disposal is permitted under Clause 23.11 (
Disposals
) or the consent of the Instructing Group has been obtained; and
|
(ii)
|
to the extent that the disposal is to be in exchange for replacement assets the Security Trustee has either received (or is satisfied, acting reasonably, that it will receive immediately following the disposal) one or more duly executed Security Documents granting Security over those replacement assets or is satisfied, acting reasonably, that the replacement assets will be subject to Security pursuant to any existing Security Documents.
|
(c)
|
If at any time the Obligors at the relevant time represent a percentage which is greater than that required to satisfy the 80% Security Test and the Company provides a certificate to the Facility Agent certifying that upon the release of one or more specified Obligors from its obligations under this Agreement the 80% Security Test would continue to be satisfied, the Security Trustee shall (and it is hereby authorised by the other Relevant Finance Parties to) at the request and cost of the Company, execute such documents as may be required to release such specified Obligors from any guarantees, indemnities and/or Security Documents to which it is a party and to release it from its other obligations under any Relevant Finance Document. Any Obligor, whose assets are to be released by this paragraph (c) or any other provision of this Agreement or the Relevant Finance Documents and who as a result will not have granted security over its assets in accordance with the 80% Security Test for the benefit of the Relevant Finance Parties, shall, for purposes of the determination of the 80% Security Test, not be treated as an Obligor for the calculation in the preceding sentence and on a going forward basis. The release provisions of this paragraph (c) shall not permit any release of any guarantees or Security in favour of the Relevant Finance Parties, in each case, granted by the Parent, the Company and any Borrower (other than the Company) for as long as such entity is a Borrower.
|
(d)
|
The Security Trustee shall (and it is hereby authorised by the other Relevant Finance Parties to) at the cost of the relevant Obligor, execute such documents as may be required or desirable to effect any release (i) permitted under Clause 10.2 (
Releases
) and Clause 10.3 (
Release of Obligors
), in each case, of the Security Trust Agreement, (ii) to which a prior written consent of the relevant Lenders has been granted in accordance with Clause 42.6 (
Guarantees and Security
) and (iii) required to permit the granting of any Security Interest permitted under Clause 23.8 (
Negative pledge
).
|
(e)
|
Notwithstanding any other provision of this Agreement, the Company may require the Security Trustee to, and the Security Trustee shall (and it is hereby authorised by the other Relevant Finance Parties to) at the cost of the relevant Obligor, execute such documents as may be required or desirable to effect the release of the Security granted over any asset of an Obligor pursuant to the Security Documents to which it is a party to enable the relevant Obligor to grant in connection with that asset any encumbrance permitted under Clause 23.8 (
Negative pledge
). If, immediately prior to such release the relevant Obligor was treated as an Obligor for the purpose of the 80% Security Test, the relevant Obligor shall continue to be treated as an Obligor for those purposes notwithstanding any such release.
|
42.8
|
Asset Security Release
|
(a)
|
Following receipt by the Lenders of the Lender Asset Security Release Confirmation, the Security Trustee shall (and it is hereby authorised by the other Relevant Finance Parties (including, if applicable, in their capacities as Hedge Counterparties (under and as defined in the Group Intercreditor Agreement and the HYD Intercreditor Agreement)) to) be irrevocably authorised by the Lenders to execute such documents as may be required to ensure that the Security (other than any Security required to be granted under paragraph (b) of the definition of “80% Security Test”) is released.
|
(b)
|
The Lenders shall procure that any of their Affiliates that are Hedge Counterparties (under and as defined in the Group Intercreditor Agreement and the HYD Intercreditor Agreement) shall, at the request of the Company at any time, enter into all documentation that is necessary or desirable to ensure that, subject to obtaining the consent to the extent necessary of any applicable party to the Group Intercreditor Agreement and the HYD Intercreditor Agreement that is not a Party (or an Affiliate of a Party that is a Hedge Counterparty (under and as defined in the Group Intercreditor Agreement and the HYD Intercreditor Agreement)) the Security (other than any Security required to be granted under paragraph (b) of the definition of “80% Security Test”) is released.
|
42.9
|
Amendments Affecting the Facility Agent
|
(a)
|
amend or waive any provision of Clause 29 (
Role of the Facility Agent, the Arrangers, the L/C Banks and Others
), Clause 36.10 (
Disclosure of Information
), Clause 37 (
Costs and Expenses
) or this Clause 42 (
Amendments
); or
|
(b)
|
otherwise amend or waive any of the Facility Agent’s rights under this Agreement or subject the Facility Agent to any additional obligations under this Agreement.
|
42.10
|
Calculation of Consent
|
42.11
|
Reference Banks and Alternative Reference Banks
|
42.12
|
Replacement of Screen Rate
|
42.13
|
Disenfranchisement of Defaulting Lenders
|
(a)
|
For so long as a Defaulting Lender has any Available Commitments, in determining whether the requisite level of consent has been obtained for a consent, waiver, amendment or other vote under the Relevant Finance Documents, that Defaulting Lender’s Commitments will be reduced by the amount of its Available Commitments.
|
(b)
|
For the purposes of this Clause 42.13 (
Disenfranchisement of Defaulting Lenders
), the Facility Agent may assume that the following Lenders are Defaulting Lenders:
|
(i)
|
any Lender which has notified the Facility Agent that it has become a Defaulting Lender; and
|
(ii)
|
any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b) or (c) of the definition of “Defaulting Lender” has occurred,
|
42.14
|
Replacement of Lenders
|
(a)
|
If at any time:
|
(i)
|
any Lender becomes a Non-Consenting Lender; or
|
(ii)
|
any Lender becomes a Non-Funding Lender,
|
(b)
|
The Company shall have no right to replace the Arrangers, the Facility Agent or the Security Trustee and none of the foregoing nor shall any Lender have any obligation to the Company to find a replacement Lender or other such entity. The Company may only exercise its replacement or prepayment rights in respect of any relevant Lender within 90 days of becoming entitled to do so on each occasion such Lender is a Non-Consenting Lender or a Non-Funding Lender.
|
(c)
|
In no event shall the Lender being replaced be required to pay or surrender to such replacement Lender or other entity any of the fees received by such Lender being replaced pursuant to this Agreement.
|
43.
|
THIRD PARTY RIGHTS
|
(a)
|
A person which is not a party to this Agreement (a
“third party”
) shall have no right to enforce any of its provisions except that:
|
(i)
|
a third party shall have those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and
|
(ii)
|
each of Clause 17.3 (
Tax Indemnity
), Clause 18 (
Increased Costs
) and Clause 29.9 (
Exclusion of Liability
) shall be enforceable by any third party referred to in such clause as if such third party were a party to this Agreement.
|
(b)
|
Subject to Clause 42.11 (
Reference Banks and Alternative Reference Banks
) but otherwise notwithstanding any term, of any Finance Documents, the consent of any third party is not required to rescind or vary this Agreement at any time.
|
44.
|
COUNTERPARTS
|
45.
|
GOVERNING LAW
|
46.
|
JURISDICTION
|
46.1
|
Courts
|
46.2
|
Waiver
|
46.3
|
Service of Process
|
46.4
|
Proceedings in Other Jurisdictions
|
46.5
|
US Borrower
|
46.6
|
General Consent
|
46.7
|
Waiver of Immunity
|
46.8
|
Waiver of trial by jury
|
47.
|
COMPLETE AGREEMENT
|
Lender
|
Revolving Facility Commitment (£)
|
Bank of America, N.A
|
50,000,000
|
Barclays Bank PLC
|
50,000,000
|
BNP Paribas Fortis SA/NV
|
50,000,000
|
Crédit Industriel et Commercial
|
10,000,000
|
Citibank, N.A. London Branch
|
25,000,000
|
Credit Agricole Corporate and Investment Bank
|
25,000,000
|
Credit Suisse AG, London Branch
|
50,000,000
|
Credit Suisse AG, Cayman Islands Branch
|
0
|
Deutsche Bank AG, London Branch
|
50,000,000
|
DNB Bank ASA London Branch
|
50,000,000
|
Goldman Sachs Lending Partners LLC
|
25,000,000
|
HSBC Bank plc
|
25,000,000
|
ING Bank N.V.
|
25,000,000
|
JPMorgan Chase Bank, N.A., London Branch
|
25,000,000
|
Lloyds TSB Bank PLC
|
25,000,000
|
Mediobanca International (Luxembourg) S.A.
|
25,000,000
|
Morgan Stanley Bank, N.A.
|
25,000,000
|
Nomura International plc
|
25,000,000
|
The Royal Bank of Scotland plc
|
25,000,000
|
Scotiabank Europe plc
|
25,000,000
|
Société Générale, London branch
|
25,000,000
|
UBS Limited
|
25,000,000
|
Total Commitments
|
660,000,000
|
Lender
|
Tax Status
|
Treaty Passport scheme reference number and jurisdiction of tax residence
|
Bank of America, N.A
|
UK Bank Lender
|
N/A
|
Barclays Bank PLC
|
UK Bank Lender
|
N/A
|
BNP Paribas Fortis SA/NV
|
UK Treaty Lender
|
18/B/359080/DTTP
Belgium
|
Crédit Industriel et Commercial
|
UK Bank Lender
|
N/A
|
Citibank, N.A. London Branch
|
UK Bank Lender
|
N/A
|
Credit Agricole Corporate and Investment Bank
|
UK Bank Lender
|
N/A
|
Credit Suisse AG, London Branch
|
UK Bank Lender
|
N/A
|
Credit Suisse AG, Cayman Islands Branch
|
|
|
Deutsche Bank AG, London Branch
|
UK Bank Lender
|
N/A
|
DNB Bank ASA London Branch
|
UK Bank Lender
|
N/A
|
Goldman Sachs Lending Partners LLC
|
UK Treaty Lender
|
13/G/356209/DTTP
USA
|
HSBC Bank plc
|
UK Bank Lender
|
N/A
|
ING Bank N.V.
|
UK Treaty Lender
|
N/A
|
JPMorgan Chase Bank, N.A., London Branch
|
UK Bank Lender
|
N/A
|
Lloyds TSB Bank PLC
|
UK Bank Lender
|
N/A
|
Mediobanca International (Luxembourg) S.A.
|
UK Treaty Lender
|
48/M/315419/DTTP
|
Morgan Stanley Bank, N.A.
|
UK Treaty Lender
|
13/M/307216/DTTP
USA
|
Nomura International plc
|
UK Non-Bank Lender
|
N/A
|
The Royal Bank of Scotland plc
|
UK Bank Lender
|
N/A
|
Scotiabank Europe plc
|
UK Bank Lender
|
N/A
|
Société Générale, London branch
|
UK Bank Lender
|
N/A
|
UBS Limited
|
UK Bank Lender
|
N/A
|
1.
|
Virgin Media Finance Plc
|
2.
|
Virgin Media Investment Holdings Limited
|
3.
|
Virgin Media Limited
|
4.
|
Virgin Media Wholesale Limited
|
5.
|
VMIH Sub Limited
|
6.
|
Virgin Media SFA Finance Limited
|
7.
|
Virgin Media Secured Finance Plc
|
8.
|
Virgin Media Bristol LLC
|
9.
|
Ntl Victoria Limited
|
(a)
|
[attached to this Certificate marked “
A
” are true, correct, complete and up-to-date copies of all documents which contain or establish or relate to the [constitution of the Company]/[due formation of the Partnership]*] / [the [Company/Partnership] has not amended any of its constitutional documents in a manner which could be reasonably expected to be materially adverse to the interests of the Lenders since the date such documents were last delivered to the Facility Agent];
|
(b)
|
attached to this Certificate marked [“
A
”/”
B
”] is a true, correct and complete copy of [resolutions duly passed] at [a meeting of the Board of Directors] [a meeting of the managers] [a meeting of the partners] duly convened and held on [●] or the equivalent thereof passed as a written resolution of the [Company/Partnership] approving the Relevant Finance Documents to which the [Company/Partnership] is a party and authorising their execution, signature, delivery and performance and such resolutions have not been amended, modified or revoked and are in full force and effect;
|
(c)
|
each copy document relating to it specified in [●] is correct, complete and in full force and effect and has not been amended or superseded as at the date of this Certificate;
|
(d)
|
the entry into and performance of the Relevant Finance Documents to which it is a party by the [Company/Partnership] will not breach any borrowing, guaranteeing or other indebtedness limit to which the [Company/Partnership] is subject; and
|
(e)
|
the following signatures are the true signatures of the persons who have been authorised to sign any necessary documents on behalf of the [Company/Partnership] and to give notices and communications (including Utilisation Requests), under or in connection with the Relevant Finance Documents on behalf of the [Company/Partnership].
|
Name
|
Position
|
Signature
|
[●]
|
[●]
|
[●]
|
(a)
|
Facility to be used: [A/B/C/Revolving Facility]
|
(b)
|
Sterling Amount/Dollar Amount: £/US$ [●]
|
(c)
|
Currency: [●]
|
(d)
|
Interest Period/Term: [●] month[s]
|
(e)
|
Proposed date of Advance: [●] (or if that day is not a Business Day, the next Business Day)
|
Yours faithfully,
|
|
_____________________________
|
_____________________________
|
Authorised Signatory
|
Authorised Signatory
|
for and on behalf of
|
for and on behalf of
|
[
Name of Borrower
]
|
[
Name of Borrower
]
|
To:
|
[●]
|
[●]
|
|
as Facility Agent; and
|
as a L/C Bank
|
(a)
|
Facility: [●]
|
(b)
|
Name of Beneficiary: [●]
|
(c)
|
Address of Beneficiary: [●]
|
(d)
|
Purpose of/Liabilities to be assured by the Documentary Credit: [
insert details
]
|
(e)
|
Sterling Amount: £[●]
|
(f)
|
Currency: [●]
|
(g)
|
Expiry Date: [●] month[s]
|
(h)
|
Proposed date of issue of Documentary Credit: [●] (or if that day is not a Business Day, the next Business Day)
|
|
|
___________________________
|
___________________________
|
Authorised Signatory
|
Authorised Signatory
|
for and on behalf of
|
for and on behalf of
|
[
Name of Borrower
]
|
[
Name of Borrower
]
|
(1)
|
the facilities agreement dated [●] (as from time to time amended, varied, novated or supplemented, the “
Facilities Agreement
”) whereby certain facilities were made available to the Borrowers under the guarantee of the Guarantors, by a group of banks and other financial institutions on whose behalf [●] acts as Facility Agent in connection therewith;
|
(2)
|
[●].
|
1.
|
Terms defined in the Facilities Agreement shall, subject to any contrary indication, have the same meanings in this Deed. The terms “Lender”, “New Lender”, “Lender’s Participation” and “Portion Transferred” are defined in the Schedule to this Deed.
|
2.
|
The Lender:
|
(a)
|
confirms that the details in the Schedule to this Deed are an accurate summary of the Lender’s Participation in the Facilities Agreement and the Interest Periods or Terms (as the case may be) for existing Advances as at the date of this Deed; and
|
(b)
|
requests the New Lender to accept and procure the transfer by novation to the New Lender of the Portion Transferred by countersigning and delivering this Deed to the Facility Agent at its address for the service of notices designated to the Facility Agent in accordance with the Facilities Agreement.
|
3.
|
The New Lender requests the Facility Agent to accept this Deed as being delivered to the Facility Agent pursuant to and for the purposes of Clause 36.6 (
Transfer
Deed
) of the Facilities Agreement so as to take effect in accordance with the terms of it on the Transfer Date or on such later date as may be determined in accordance with the terms of it.
|
4.
|
The New Lender confirms that it has received a copy of the Facilities Agreement together with such other information as it has required in connection with this transaction and that it has not relied and will not rely on the Lender to check or enquire on its behalf into the legality, validity, effectiveness, adequacy, accuracy or
|
5.
|
The New Lender undertakes with the Lender and each of the other parties to the Facilities Agreement that it will perform in accordance with their terms all those obligations which by the terms of the Relevant Finance Documents will be assumed by it after delivery of this Deed to the Facility Agent and satisfaction of the conditions (if any) subject to which this Deed is expressed to take effect.
|
6.
|
The Lender makes no representation or warranty and assumes no responsibility with respect to the legality, validity, effectiveness, adequacy or enforceability of the Facilities Agreement, any other Relevant Finance Document or other document relating to it and assumes no responsibility for the financial condition of any Obligor or for the performance and observance by any Obligor of any of its obligations under the Facilities Agreement, any Relevant Finance Document or any other document relating to it and any and all such conditions and warranties, whether express or implied by Law or otherwise, are excluded.
|
7.
|
The Lender gives notice that nothing in this Deed or in the Facilities Agreement (or any Relevant Finance Document or other document relating to it) shall oblige the Lender (a) to accept a re transfer from the New Lender of the whole or any part of its rights, benefits and/or obligations under the Relevant Finance Documents transferred pursuant to this Deed or (b) to support any losses directly or indirectly sustained or incurred by the New Lender for any reason whatsoever (including the failure by any Obligor or any other party to the Relevant Finance Documents (or any document relating to them) to perform its obligations under any such document) and the New Lender acknowledges the absence of any such obligation as is referred to in (a) and (b) above.
|
8.
|
[The New Lender represents to the Facility Agent and to each relevant UK Borrower that it is a UK Bank Lender.]
|
9.
|
Any New Lender that is a UK Bank Lender or a UK Non-Bank Lender shall deliver to the Facility Agent, on or before the date falling five Business Days before the date upon which interest next falls due for payment after the date hereof, the following documents evidencing the tax status of the New Lender as indicated above:
|
UK Bank Lender
|
(i) certificate of incorporation; and
(ii) copy of banking licence.
|
UK Non- Bank Lender
|
(i) certificate of incorporation in the UK; or
(ii) other evidence that the relevant ss. 933-937 Income Tax Act 2007 conditions are met.
|
1.
|
|
Lender:
|
|
|
|
2.
|
|
New Lender:
|
|
|
|
3.
|
|
Transfer Date:
|
|
|
|
4.
|
|
Lender’s Participation in Term Facility Outstandings
|
|
Interest Period
|
Portion Transferred
|
5.
|
[(a)]
|
Lender’s Revolving Facility Commitment
|
|
Portion Transferred
|
|
|
[(b)]
|
Lender’s Ancillary Facility Commitment
|
|
Portion Transferred 100%]
|
|
6.
|
[(a)]
|
Lender’s Participation in Revolving Facility Outstandings
|
|
Term
|
Portion Transferred
|
7.
|
[(b)]
|
Lender’s Participation in Ancillary Facility Outstandings
|
|
|
Portion Transferred 100%]
|
|
|
[Documentary Credits Issued
|
|
Term and Expiry Date
|
Portion Transferred]
|
10.
|
Facility Office Address
(in relation to the Transferee’s tax status as set out in paragraph 8 above):
|
1.
|
Assignor[s]: ______________________________
|
2.
|
Assignee[s]: ______________________________
|
3.
|
Borrower(s): ______________________________
|
4.
|
Facility Agent: [
l
], as the facility agent under the Senior Facilities Agreement
|
5.
|
Senior Facilities Agreement: [The [
amount
] Senior Facilities Agreement dated as of [
l
] among [
name of Borrower(s)
], the Lenders parties thereto and [
name of Facility Agent
], as Facility Agent]
|
6.
|
Assigned Interest[s]:
|
Assignor[s]
|
Assignee[s]
|
Facility Assigned
|
Aggregate Amount of Commitment/ Advances for all Lenders
|
Amount of Commitment/ Advances Assigned
8
|
Percentage Assigned of Commitment/
Advances |
CUSIP Number
|
|
|
|
$
|
$
|
%
|
|
|
|
|
$
|
$
|
%
|
|
|
|
|
$
|
$
|
%
|
|
7.
|
[Trade Date: ______________]
|
UK Bank Lender
|
(i) certificate of incorporation; and
(ii) copy of banking licence.
|
UK Non- Bank Lender
|
(i) certificate of incorporation in the UK; or
(ii) other evidence that the relevant ss. 933-937 Income Tax Act 2007 conditions are met.
|
1.
|
We refer to the facilities agreement dated [●] (as from time to time amended, varied, novated or supplemented, the “
Facilities Agreement
”) and made between,
inter alia
, [●].
|
2.
|
[The Subsidiary is required to accede to the Facilities Agreement as an Acceding Guarantor pursuant to Clause 3 (
Conditions
) and Clause 25.3 (
Acceding Guarantors
).]
|
(a)
|
repeats the Repeating Representations identified as being made by it under Clause 21 (
Representations and Warranties
) upon the date [the Subsidiary/Holdco] accedes to the Facilities Agreement; and
|
(b)
|
confirms that no Default [(other than any Default which will be remedied by the accession of the [Acceding Borrower][Acceding Guarantor] and each other person acceding as a [Borrower][Guarantor] on or about the date of this Accession Notice)] is continuing or will occur as a result of [the Subsidiary/Holdco] becoming an [Acceding Borrower/an Acceding Guarantor/ a party to this Agreement].
|
EXECUTED
as a
DEED
by
[
Name of Subsidiary
]
acting by
|
)
)
)
|
Director
|
____________________________
[ insert name of director ] |
In the presence of:
|
|
Witness:
|
____________________________
|
Witness Name:
|
____________________________
|
Witness Address:
|
____________________________
|
|
____________________________
|
|
____________________________
|
Witness Occupation:
|
____________________________
|
EXECUTED
as a
DEED
by
[
Insert name of Holdco
]
acting by
|
)
)
)
|
Director
|
____________________________
[ insert name of director ] |
In the presence of:
|
|
Witness:
|
____________________________
|
Witness Name:
|
____________________________
|
Witness Address:
|
____________________________
|
|
____________________________
|
|
____________________________
|
Witness Occupation:
|
____________________________
|
EXECUTED
as a
DEED
by
[
●
]
acting by
|
)
)
)
|
Director
|
____________________________
[ insert name of director ] |
In the presence of:
|
|
Witness:
|
____________________________
|
Witness Name:
|
____________________________
|
Witness Address:
|
____________________________
|
|
____________________________
|
|
____________________________
|
Witness Occupation:
|
____________________________
|
1.
|
Corporate Documents
|
(a)
|
a copy of its up-to-date constitutional documents;
|
(b)
|
a board resolution or a manager’s resolution or a partner’s resolution of such person approving the execution and delivery of the relevant Accession Notice, its accession to the Facilities Agreement as an Acceding Guarantor or Acceding Borrower, as applicable, and the performance of its obligations under the Relevant Finance Documents and authorising a person or persons identified by name or office to sign such Accession Notice and any other documents to be delivered by it pursuant thereto;
|
(c)
|
to the extent legally necessary, a copy of a shareholders’ resolution of all the shareholders of such person approving the execution, delivery and performance of the Relevant Finance Documents to which it is a party and the terms and conditions to it; and
|
(d)
|
a duly completed certificate of a duly authorised officer of such person substantially in the form of Part 3: of Schedule 3 (
Form of Officer’s Certificate
).
|
2.
|
Legal Opinions
|
(a)
|
Such legal opinions as the Facility Agent may reasonably require of such legal advisers as may be acceptable to the Facility Agent, as to:
|
(b)
|
the due incorporation, capacity and authorisation of the relevant Acceding Group Company; and
|
(c)
|
the relevant obligations to be assumed by the relevant Acceding Group Company under the Relevant Finance Documents to which it is a party being legal, valid, binding and enforceable against it,
|
(d)
|
in each case, under the relevant laws of the jurisdiction of organisation or establishment of such Acceding Group Company, as the case may be.
|
3.
|
Necessary Authorisations
|
4.
|
Security Documents
|
5.
|
Process Agent
|
6.
|
Financial Statements
|
7.
|
Accession Documents
|
(a)
|
the facilities agreement dated [●] (as from time to time amended, varied, novated or supplemented, the “
Facilities Agreement
”) whereby certain facilities were made available to the Borrowers under the guarantee of the Guarantors, by a group of banks and other financial institutions on whose behalf [●] acts as Facility Agent in connection therewith;
|
(b)
|
[●]
|
(a)
|
it has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and such Obligor’s related entities in connection with its participation in the Additional Facility being made available pursuant to this Additional Facility Accession Deed and has not relied on any information provided to it by any other Relevant Finance Party in connection with any Relevant Finance Document; and
|
(b)
|
it will continue to make its own independent appraisal of the creditworthiness of each Obligor and such Obligor’s related entities while any amount is or may be outstanding under the Facilities Agreement or any Additional Facility Commitment is in force.
|
UK Bank Lender
|
certificate of incorporation; and
copy of banking licence.
|
UK Non- Bank Lender
|
(i) certificate of incorporation in the UK; or
(ii) other evidence that the relevant ss. 933-937 Income Tax Act 2007 conditions are met.
|
EXECUTED
as a
DEED
for and on behalf of
[
●
]
acting by:
|
)
)
)
|
Director
|
____________________________
[ insert name of director ] |
In the presence of:
|
|
Witness:
|
____________________________
|
Witness Name:
|
____________________________
|
Witness Address:
|
____________________________
|
|
____________________________
|
|
____________________________
|
Witness Occupation:
|
____________________________
|
EXECUTED
as a
DEED
for and on behalf of
|
|
[●]
|
[●]
|
By:
|
By:
|
1.
|
Corporate Documents
|
(a)
|
a copy of its up-to-date constitutional documents or a certificate of an authorised officer of the Company confirming that such Borrower has not amended its constitutional documents in a manner which could reasonably be expected to be materially adverse to the interests of the Lenders since the date the officer’s certificate in relation to such Obligor was last delivered to the Facility Agent.
|
(b)
|
a copy of a board resolution or a manager’s or partner’s resolution of such person approving the incurrence by such person of the indebtedness under the Additional Facility; and
|
(c)
|
a duly completed certificate of a duly authorised officer of such person in the form attached in Part 1: of Schedule 9 (
Form of Additional Facility Officer’s Certificate
) with such amendments as the Facility Agent may agree.
|
2.
|
Fees
|
3.
|
Designation
|
(a)
|
designating the Additional Facility as New Senior Liabilities in accordance with Clause 12 (
New Senior Liabilities
) of the Group Intercreditor Agreement; and
|
(b)
|
designating the Additional Facility as Designated Senior Liabilities in accordance with Clause 8.2 (
Designated Senior Liabilities
) of the HYD Intercreditor Agreement.
|
4.
|
Legal Opinions
|
(a)
|
the due incorporation, capacity and authorisation of the relevant Additional Facility Borrower; and
|
(b)
|
the relevant obligations to be assumed by the relevant Additional Facility Borrower under the Relevant Finance Documents to which it is a party being legal, valid, binding and enforceable against it,
|
(a)
|
[attached to this Certificate marked “
A
” are true, correct, complete and up-to-date copies of all documents which contain or establish or relate to the constitution of the [Company/Partnership];] / [the [Company/Partnership] has not amended any of its constitutional documents in a manner which could be reasonably expected to be materially adverse to the interests of the Lenders since the date such documents were last delivered to the Facility Agent];
|
(b)
|
attached to this Certificate marked [“
A
”/”
B
”] is a true, correct and complete copy of [resolutions duly passed] at [a meeting of the Board of Directors] [a meeting of the managers] [a meeting of the partners] duly convened and held on [●] or the equivalent thereof passed as a written resolution of the [Company/Partnership] approving the Relevant Finance Documents to which the [Company/Partnership] is a party and authorising their execution, signature, delivery and performance and such resolutions have not been amended, modified or revoked and are in full force and effect; and
|
(c)
|
the incurrence of the indebtedness under the Additional Facility by the [Company/Partnership] will not breach any borrowing, guaranteeing or other indebtedness limit to which the [Company/Partnership] is subject.
|
ENGLISH SECURITY DOCUMENTS
|
|
1.
|
Confirmation Deed dated 3 March 2011 made between Virgin Media Investment Holdings Limited and each of its subsidiaries, Deutsche Bank AG, London Branch as Security Trustee and the Bank of New York Mellon as Trustee under the Senior Secured Notes.
|
2.
|
Composite Debenture dated 19 January 2010 by each of the Obligors listed therein in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
3.
|
Composite Debenture dated 15 April 2010 by Virgin Media SFA Finance Limited in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
4.
|
Composite Debenture dated 10 June 2010 by each of the Obligors listed therein in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
5.
|
Composite Debenture dated 29 January 2010 by each of the Obligors listed therein in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
6.
|
Composite Debenture dated 18 February 2011 by VMWH Limited in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
7.
|
Charge over Shares dated 15 April 2010 granted by Virgin Media Finance PLC as Chargor in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
8.
|
Blocked Account Charge dated 9 February 2010 and made between Virgin Media Investment Holdings Limited and Deutsche Bank AG, London Branch.
|
9.
|
Assignment of loans dated 15 April 2010 granted by Virgin Media Finance PLC in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
SCOTTISH SECURITY DOCUMENTS
|
|
10.
|
Confirmation Deed dated 3 March 2011 made between Virgin Media Investment Holdings Limited and each of its subsidiaries, Deutsche Bank AG, London Branch as Security Trustee and the Bank of New York Mellon as Trustee under the Senior Secured Notes.
|
11.
|
Share Pledge dated 19 January 2010 and made between NTL Glasgow and Deutsche Bank AG, London Branch.
|
12.
|
Bond and Floating Charge dated 19 January 2010 and made between NTL Glasgow and Deutsche Bank AG, London Branch.
|
13.
|
Bond and Floating Charge dated 19 January 2010 and made between Telewest Communications (Motherwell) Limited and Deutsche Bank AG, London Branch.
|
ENGLISH SECURITY DOCUMENTS
|
|
14.
|
Bond and Floating Charge dated 19 January 2010 and made between Telewest Communications (Dundee & Perth) Limited and Deutsche Bank AG, London Branch.
|
NEW YORK SECURITY DOCUMENTS
|
|
15.
|
Reaffirmation Agreement dated 3 March 2011 between Virgin Media Inc., each subsidiaries, Deutsche Bank AG, London Branch as Security Trustee and the Bank of New York Mellon as Trustee under the Senior Secured Notes.
|
16.
|
Amended and Restated Share Pledge Agreement dated as of January 19, 2010 granted by Virgin Media Limited and others, as Pledgors in favour of Deutsche Bank AG, London Branch as Security Trustee.
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
EUROBELL (SOUTH WEST) LIMITED
|
29 MAY 1997
|
LLOYDS BANK PLC
|
DEPOSIT AGREEMENT
|
EUROBELL (SUSSEX) LIMITED
|
29 MAY 1997
|
LLOYDS BANK PLC
|
DEPOSIT AGREEMENT
|
EUROBELL (WEST KENT) LIMITED
|
29 MAY 1997
|
LLOYDS BANK PLC
|
DEPOSIT AGREEMENT
|
NTL KIRKLEES
|
06 AUGUST 1997
|
NATIONAL BANK WESTMINSTER PLC
|
CHARGE OVER CREDIT BALANCES
|
NTL KIRKLEES
|
31 JANUARY 1997
|
NATIONAL BANK WESTMINSTER PLC
|
CHARGE OVER CREDIT BALANCES
|
NTL MIDLANDS LIMITED
|
27 SEPTEMBER 1994
|
NATIONAL WESTMINSTER BANK PLC
|
LEGAL MORTGAGE
|
NTL (SOUTH HERTFORDSHIRE) LIMITED
|
20 FEBRUARY 2001
|
NTL (CWC) LIMITED
|
DEBENTURE
|
SHEFFIELD CABLE COMMUNICATIONS LIMITED
|
12 NOVEMBER 1999
|
BARCLAYS BANK PLC
|
LEGAL CHARGE OF LEASEHOLD PROPERTY KNOWN AS 1.62 ACRES OF LAND AT SHEFFIELD TECHNOLOGY PARK
|
SHEFFIELD CABLE COMMUNICATIONS LIMITED
|
24 DECEMBER 1996
|
BARCLAYS BANK PLC
|
LEGAL CHARGE GRANTED OVER 1 CHIPPINGHAM STREET, SHEFFIELD
|
TELEWEST COMMUNICATIONS NETWORKS LIMITED
|
15 OCTOBER 2004
|
BARCLAYS BANK PLC
|
DEED OF CHARGE OVER CREDIT BALANCES
|
VIRGIN MEDIA FINANCE PLC
|
13 APRIL 2004
|
CREDIT SUISSE FIRST BOSTON
|
AN EQUITABLE CHARGE OF INTERCOMPANY RECEIVABLES
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
VIRGIN MEDIA LIMITED
|
4 JUNE 2009
|
PEEL MEDIA LIMITED
|
DEPOSIT DEED
|
VIRGIN MEDIA LIMITED
|
18 MAY 2006
|
DEUTSCHE BANK AG LONDON BRANCH (AS SECURITY TRUSTEE FOR THE BENEFICIARIES)
|
SUPPLEMENTAL MORTGAGE
|
VIRGIN MEDIA LIMITED
|
5 JUNE 2002
|
EXPRESS PROPERTY INVESTMENTS LIMITED
|
RENT DEPOSIT DEED - BASEMENT AT 90-92 CRAWFORD STREET LONDON
|
VIRGIN MEDIA LIMITED
|
21 FEBRUARY 2002
|
LEEDS CITY COUNCIL
|
RENT DEPOSIT DEED - MEANS THE SUM OF £4,000 TOGETHER WITH ALL MONEY RECEIVED
|
VIRGIN MEDIA WHOLESALE LIMITED
|
19 MAY 2005
|
COMMERCIAL MANAGEMENT (INVESTMENTS) LIMITED (ACTING AS SOLE GENERAL PARTNER OF CML INVESTMENTS
|
RENT SECURITY DEPOSIT DEED
|
VIRGIN MOBILE TELECOMS LIMITED
|
29 FEBRUARY 2000
|
THE ROYAL BANK OF SCOTLAND PLC
|
CHARGE OF DEPOSIT - THE DEPOSIT INITIALLY OF £100,000 CREDITED TO ACCOUNT DESIGNATION 20063280 WITH THE BANK AND ANY ADDITION TO THAT DEPOSIT AND ANY DEPOSIT OR ACCOUNT FROM TIME TO TIME OF ANY CURRENCY DESCRIPTION OR DESIGNATION WHICH DERIVES IN WHOLE OR IN PART FROM SUCH DEPOSIT OR ACCOUNT
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
VIRGIN MOBILE TELECOMS LIMITED
|
28 OCTOBER 1999
|
THE ROYAL BANK OF SCOTLAND PLC
|
CHARGE OF DEPOSIT - THE DEPOSIT INITIALLY OF £45,000 CREDITED TO ACCOUNT DESIGNATION 20063272
|
VIRGIN NET LIMITED
|
19 APRIL 1999
|
AT & T (UK) LTD
|
RENT DEPOSIT DEED - THE BALANCE CREDITED TO THE INTEREST BEARING ACCOUNT OPENED IN THE NAME OF THE MORTGAGEE WITH A BANK OR OTHER INSTITUTION OF THE MORTGAGEES CHOOSING WHEREIN £250,000 PLUS VAT IS FOR THE TIME BEING LODGED SEE CHARGE PARTICULARS FORM FOR DETAILS
|
X-TANT LIMITED
|
28 JUNE 2002
|
LEEDS CITY COUNCIL
|
RENT DEPOSIT DEED - £5,550.00 WITH ALL OTHER SUMS RECEIVED
|
X-TANT LIMITED
|
4 OCTOBER 2000
|
BERRY TRADE LIMITED
|
LICENCE FOR ASSIGNMENT RELATING TO THE PREMISES K/A GROUND FLOOR UNIT 1 ISIS BUSINESS CENTRE HORSPATH ROAD COWLEY OXFORD (THE PREMISES) INCORPORATING A RENT DEPOSIT CHARGE
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
X-TANT LIMITED
|
4 OCTOBER 2000
|
BERRY TRADE LIMITED
|
LICENCE TO ASSIGN
|
X-TANT LIMITED
|
21 SEPTEMBER 2000
|
AC SKELTON & SONS LIMITED
|
RENTAL DEPOSIT AGREEMENT
|
X-TANT LIMITED
|
20 SEPTEMBER 1999
|
HANGER ESTATES LIMITED
|
RENT DEPOSIT DEED - £1,680 DUE OR TO BECOME DUE FROM THE COMPANY TO THE CHARGEE
|
X-TANT LIMITED
|
1 JULY 1999
|
A C SKELTON & SONS LIMITED
|
RENTAL DEPOSIT AGREEMENT - AN AMOUNT HELD FROM TIME TO TIME BY THE CHARGEE PURSUANT TO THE TERMS OF THE RENTAL DEPOSIT AGREEMENT EQUIVALENT TO £2,400
|
CABLETEL SURREY AND HAMPSHIRE LIMITED
|
19/07/1995
|
BRITISH AEROSPACE PENSION FUNDS TRUSTEES LIMITED
|
DEED OF RENTAL DEPOSIT
|
CRYSTAL PALACE RADIO LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
LANBASE EUROPEAN HOLDINGS LIMITED
|
14/06/1991
|
AIRSPACE INVESTMENTS LIMITED
|
RENT DEPOSIT DEED
|
LANBASE LIMITED
|
01/10/1991
|
AIRSPACE INVESTMENTS LIMITED
|
RENT DEPOSIT DEED
|
NTL (CWC HOLDINGS)
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
DEBENTURE
|
NTL (PETERBOROUGH) LIMITED
|
10/08/1990
|
MIDAS INTERNATIONAL PROPERTIES PLC
|
COUNTERPART RENT DEPOSIT DEED
|
NTL (SOUTH EAST) LIMITED
|
15/06/1994
|
THE PRUDENTIAL ASSURANCE COMPANY LIMITED
|
RENT DEPOSIT DEED
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
NTL (SOUTH EAST) LIMITED
|
22/03/1996
|
NATWEST SPECIALIST FINANCE LIMITED
|
LESSOR SOUTH EAST DEBENTURE
(ALL OF THE PROPERTY OR UNDERTAKING NO LONGER FORMS PART OF CHARGE)
|
NTL (TRIANGLE) LLC
|
03/03/2006
|
DEUTSCHE BANK AG, LONDON BRANCH
|
CHARGE
|
NTL (TRIANGLE) LLC
|
16/06/2006
|
DEUTSCHE BANK AG, LONDON BRANCH
|
AN ALTERNATIVE BRIDGE CHARGE OVER SHARES
|
NTL CABLECOMMS GROUP LIMITED
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
A PLEDGE AGREEMENT
|
NTL CHARTWELL HOLDINGS LIMITED
|
21/02/2001
|
CHASE MANHATTAN INTERNATIONAL LIMITED
|
PLEDGE AGREEMENT
|
NTL CHARTWELL HOLDINGS LIMITED
|
27/09/2001
|
CHASE MANHATTAN INTERNATIONAL LIMITED
|
SECOND DEBENTURE
|
NTL CHARTWELL HOLDINGS LIMITED
|
27/09/2001
|
CHASE MANHATTAN INTERNATIONAL LIMITED
|
SECOND DEBENTURE
|
NTL CHARTWELL HOLDINGS LIMITED
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
DEBENTURE
|
NTL COMMUNICATIONS SERVICES LIMITED
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
DEBENTURE
|
NTL HOLDINGS (NORWICH) LIMITED
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
MORTGAGE
|
NTL HOLDINGS (PETERBOROUGH) LIMITED
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
DEBENTURE
|
NTL NATIONAL NETWORKS LIMITED
|
24/05/2006
|
ROSEDALE PROPERTY HOLDINGS LIMITED
|
RENT DEPOSIT DEED
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
NTL NATIONAL NETWORKS LIMITED
|
30/08/2006
|
ROYAL BANK OF CANADA TRUST COMPANY (JERSEY) LIMITED AS TRUSTEE OF EXCHANGE QUAY MASTER TRUST
|
RENT DEPOSIT DEED
|
NTL SOUTH CENTRAL LIMITED
|
09/08/1993
|
HIGGS & HILL PROPERTIES LIMITED
|
RENT DEPOSIT DEED
|
NTL SOUTH CENTRAL LIMITED
|
14/12/1993
|
UBERIOR NOMINEES (GULLIVER D.P.U.T.) LIMITED
|
DEED OF DEPOSIT
|
NTL SOUTH CENTRAL LIMITED
|
11/06/1996
|
ELMROSE PROPERTIES LIMITED
|
UNDERLEASE
|
NTL SOUTH CENTRAL LIMITED
|
17/12/2001
|
BARCLAYS NOMINEES (GEORGE YARD) LIMITED
|
DEED OF DEPOSIT
|
NTL UK CABLECOMMS HOLDINGS, INC.
|
27/09/2001
|
CHASE MANHATTAN INTERNATIONAL LIMITED,LONDON,
|
SECURITY AGREEMENT
|
NTL UK CABLECOMMS HOLDINGS, INC.
|
27/09/2001
|
CHASE MANHATTAN INTERNATIONAL LIMITED,LONDON,
|
PLEDGE AGREEMENT
|
NTL UK CABLECOMMS HOLDINGS, INC.
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
A PLEDGE AGREEMENT
|
NTL UK CABLECOMMS HOLDINGS, INC.
|
03/03/2006
|
DEUTSCHE BANK AG, LONDON BRANCH
|
CHARGE
|
NTL UK CABLECOMMS HOLDINGS, INC.
|
16/06/2006
|
DEUTSCHE BANK AG, LONDON BRANCH
|
AN ALTERNATIVE BRIDGE CHARGE OVER SHARES
|
NTL UK TELEPHONE AND CABLE TV HOLDING COMPANY LIMITED
|
18/06/1991
|
CERVINO CO LIMITED.
|
TENANCY AGREEMENT
|
NTL WINSTON HOLDING LIMITED
|
13/04/2004
|
CREDIT SUISSE FIRST BOSTON
|
A PLEDGE AGREEMENT
|
RAPID TRAVEL SOLUTIONS LIMITED
|
07/04/2000
|
BARCLAYS BANK PLC
|
GUARANTEE & DEBENTURE
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
THE YORKSHIRE CABLE GROUP LIMITED
|
16/03/2001
|
ROBERT FLEMING LEASING (NUMBER 4) LIMITED
|
COLLATERAL ACCOUNT SECURITY ASSIGNMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO.1 LIMITED
|
11/09/2006
|
DEUTSCHE BANK AG, LONDON BRANCH
|
SHARES PLEDGE
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
CHARGOR
|
DATE
|
BENEFICIARY
|
SUMMARY
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO. 2 LIMITED
|
21/12/2004
|
BARCLAYS BANK PLC
|
PLEDGE AND SECURITY AGREEMENT
|
THESEUS NO. 2 LIMITED
|
11/09/2006
|
DEUTSCHE BANK AG, LONDON BRANCH
|
SHARES PLEDGE
|
TVS TELEVISION LIMITED
|
12/08/1983
|
BARCLAYS BANK PLC
|
GUARANTEE & DEBENTURE
|
WINDSOR TELEVISION LIMITED
|
09/07/1999
|
LANGLEY QUAY INVESTMENTS LIMITED
|
DEED AS TO DEPOSIT OF MONIES
|
YORKSHIRE CABLE COMMUNICATIONS LIMITED
|
16/06/1992
|
BARCLAYS BANK PLC
|
LEGAL CHARGE
|
YORKSHIRE CABLE COMMUNICATIONS LIMITED
|
24/12/1996
|
BARCLAYS BANK PLC
|
LEGAL CHARGE
|
YORKSHIRE CABLE COMMUNICATIONS LIMITED
|
24/12/1996
|
BARCLAYS BANK PLC
|
LEGAL CHARGE
|
YORKSHIRE CABLE COMMUNICATIONS LIMITED
|
24/12/1996
|
BARCLAYS BANK PLC
|
LEGAL CHARGE
|
YORKSHIRE CABLE PROPERTIES LIMITED
|
24/12/1996
|
BARCLAYS BANK PLC
|
LEGAL CHARGE
|
Company name (Creditor)
|
Balance (Debtor)
|
Balances in GBP as at 31 March 2013
|
(US GAAP)
|
||
Eurobell (Holdings) Limited
|
Matchco Limited
|
2,239,000.00
|
Flextech (1992) Limited
|
Action Stations (Lakeside) Limited
|
5,879,915.00
|
ntl Funding Limited
|
Virgin Media Finance PLC
|
59,977,368.94
|
ntl Glasgow
|
Virgin Media (UK) Group, Inc
|
27,523,000.00
|
ntl Kirklees
|
Virgin Media (UK) Group, Inc
|
4,675,000.00
|
ntl Rectangle Limited
|
Virgin Media Communications Limited
|
1,000.00
|
Rapid Travel Solutions Limited
|
Rapid Business Solutions Limited
|
307,643.00
|
Telewest Communications (London South) Joint Venture
|
Crystalvision Productions Limited
|
25,017.00
|
Telewest Communications (London South) Limited
|
Crystalvision Productions Limited
|
20,167.00
|
Telewest Communications Networks Limited
|
Smashedatom Limited
|
5,671.94
|
Telewest Communications Networks Limited
|
Virgin Media Inc
|
31,700,310.02
|
Virgin Media Investment Holdings Limited
|
Virgin Media Inc
|
693,058,444.92
|
Virgin Media Limited
|
NTL Digital (US), Incorporated
|
349,695.81
|
Virgin Media Limited
|
Virgin Media Communications Limited
|
44,389.88
|
Virgin Media Limited
|
Virgin Media Finance PLC
|
85,950,948.01
|
Virgin Media Secured Finance Plc
|
Virgin Media Finance PLC
|
5,250.23
|
Virgin Media Wholesale Limited
|
Crystalvision Productions Limited
|
101,000.00
|
Virgin Media Wholesale Limited
|
Virgin Media Holdings Inc
|
53,311,473.70
|
TOTAL
|
|
965,175,295.45
|
1.
|
Existing High Yield Notes
|
2.
|
Existing Senior Secured Notes
|
3.
|
Existing Vendor Financing Arrangements
|
4.
|
Existing Hedging Agreements
|
5.
|
Property Mortgages by NTL Midlands Limited with NatWest Bank PLC
|
6.
|
Finance lease creditors (details set out in Part 3 of Schedule 12)
|
7.
|
Open-ended £75,000 performance bond for Birmingham Cable Limited provided by The Royal Bank of Scotland plc
|
8.
|
Open-ended £35,000 performance bond for Virgin Media Limited provided by Barclays Bank plc
|
9.
|
Open-ended £80,000 performance bond for Virgin Media Limited provided by Barclays Bank plc
|
Company Name
|
LC Bank
|
Expiry Date
|
Total L/C Amount
|
Total Outstanding Drawings
|
Virgin Media Investment Holdings Limited
|
Deutsche Bank AG, London Branch
|
30/06/2013
|
£300,000
|
|
Virgin Media Investment Holdings Limited
|
Deutsche Bank AG, London Branch
|
23/07/2014
|
£1,750,000
|
|
Virgin Media Limited
|
Deutsche Bank AG, London Branch
|
31/03/2014
|
£4,298,000
|
|
Virgin Media Wholesale Limited
|
Deutsche Bank AG, London Branch
|
31/03/2014
|
£100,000
|
|
LESSOR
|
Type of Vendor Financing
|
Closing Balance in GBP millions
|
||
|
|
(US GAAP)
|
||
BT
|
Network
|
|
£5.5
|
|
Cisco Capital
|
IT
|
|
£126.6
|
|
HSBC Equipment Finance (UK) Limited
|
Set Top Boxes
|
|
£37.8
|
|
IBM Financial Services
|
IT
|
|
£5.4
|
|
HP
|
Set Top Boxes
|
|
£36.5
|
|
Lex
|
Vehicles
|
|
£0.3
|
|
Alphabet
|
Vehicles
|
|
£0.3
|
|
|
|
|
||
Subtotal
|
|
|
£212.4
|
|
|
|
|
||
Property Sale and Leaseback
|
|
|
£35.3
|
|
|
|
|
||
Total
|
|
|
£247.7
|
|
1.
|
Bank of Scotland plc
|
2.
|
BNP Paribas
|
3.
|
Credit Agricole Corporate and Investment Bank formerly known as CALYON
|
4.
|
Citibank, N.A.
|
5.
|
Credit Suisse International
|
6.
|
Deutsche Bank
|
7.
|
Goldman Sachs International
|
8.
|
HSBC Bank plc
|
9.
|
JPMorgan Chase Bank N.A.
|
10.
|
Lloyds TSB Bank plc
|
11.
|
Merrill Lynch International Bank Ltd.
|
12.
|
Nomura International plc
|
13.
|
The Royal Bank of Scotland plc
|
14.
|
Société Générale
|
15.
|
UBS AG
|
1.
|
L/C Bank’s Agreement
|
(a)
|
The Beneficiary may request a drawing or drawings under this Documentary Credit by giving to the L/C Bank a duly completed Demand. A Demand must be received by the L/C Bank on or before [●] p.m. ([London] time) on the Expiry Date.
|
(b)
|
Subject to the terms of this Documentary Credit, the L/C Bank unconditionally and irrevocably undertakes to the Beneficiary that, within [10] Business Days of receipt by it of a Demand, it will pay to the Beneficiary the amount demanded in that Demand.
|
(c)
|
The L/C Bank will not be obliged to make a payment under this Documentary Credit if as a result the aggregate of all payments made by it under this Documentary Credit would exceed the Total L/C Amount.
|
2.
|
Expiry
|
(a)
|
The L/C Bank will be released from its obligations under this Documentary Credit on the date (if any) notified by the Beneficiary to the L/C Bank as the date upon which the obligations of the L/C Bank under this Documentary Credit are released.
|
(b)
|
Unless previously released under paragraph (a) above, at [●] p.m. ([London] time) on the Expiry Date the obligations of the L/C Bank under this Documentary Credit will cease with no further liability on the part of the L/C Bank except for any Demand validly presented under the Documentary Credit before that time that remains unpaid.
|
(c)
|
When the L/C Bank is no longer under any further Obligations under this Documentary Credit, the Beneficiary must promptly return the original of this Documentary Credit to the L/C Bank.
|
3.
|
Payments
|
4.
|
Delivery of Demand
|
5.
|
Assignment
|
6.
|
UCP
|
7.
|
Governing Law
|
8.
|
Jurisdiction
|
(a)
|
[a UK Bank Lender.]
|
(b)
|
[a UK Non-Bank Lender and falls within paragraph [(a)]/[(b)] of the definition thereof.]
|
(c)
|
[a UK Treaty Lender]
|
(d)
|
[not a Qualifying UK Lender].
|
UK Bank Lender
|
certificate of incorporation; and
copy of banking licence.
|
UK Non- Bank Lender
|
(i) certificate of incorporation in the UK; or
(ii) other evidence that the relevant ss. 933-937 Income Tax Act conditions are met.
|
(a)
|
no Event of Default is continuing or would result from the acceptance of this request; and
|
(b)
|
the resigning Borrower is under no actual or contingent obligations as a Borrower under any Relevant Finance Documents; and
|
(c)
|
[the resigning Borrower’s obligations in its capacity as Guarantor continue to be legal, valid, binding and enforceable and in full force and effect (subject to the any relevant reservations or qualifications contained in any legal opinion referred to in Clause 21.4(a) (
Legal validity
)) and the amount guaranteed by it as a Guarantor is not decreased, subject to Clause 42.7 (
Release of Guarantees and Security
)].
|
|
Advance or Documentary Credit in euro or Dollars
|
Advance or Documentary Credit in Sterling
|
Advance or Documentary Credit in other currencies
|
Delivery of a duly completed Utilisation Request under Clause 4.1(a) (
Conditions to Utilisation
)
|
U-2
9am
|
U-2
9am
|
U-3
9am
|
Agent determines (in relation to a Utilisation) the Sterling Amount of the Advance, if required under Clause 4.2 (
Lenders’ participation
) and notifies the Lenders of the Advance in accordance with Clause 4.2 (
Lenders’ participation
)
|
U-2
noon
|
U-2
noon
|
U-3
noon
|
Agent receives a notification from a Lender under Clause 7.2 (
Unavailability of Optional Currency
)
|
-
|
-
|
Quotation Date
9.30am
|
Agent gives notice in accordance with Clause 7.2 (
Unavailability of Optional Currency
)
|
-
|
-
|
Quotation Date
5.30pm
|
LIBOR or EURIBOR is fixed
|
Quotation Date 11:00 a.m. in respect of LIBOR and 11.00 a.m. (Brussels time) in respect of EURIBOR
|
Quotation Date 11:00 a.m.
|
Quotation Date 11:00 a.m.
|
Reference Bank Rate calculated by reference to available quotations in accordance with Clause 15.2 (
Calculation of Reference Bank and Alternative Reference Bank Rate
)
|
Noon on the Quotation Date
|
Noon on the Quotation Date
|
Noon on the Quotation Date
|
Alternative Reference Bank Rate calculated by reference to available quotations in accordance with Clause 15.2 (
Calculation of Reference Bank and Alternative Reference Bank Rate
)
|
Close of business in London on the date falling one Business Day after the Quotation Date
|
Close of business in London on the date falling one Business Day after the Quotation Date
|
Close of business in London on the date falling one Business Day after the Quotation Date
|
|
|
6.50% Convertible Senior Notes due 2016
|
CA
1
|
|
CA
f
x CA/SPo
|
|
|
(CA
f
x CA/SPo) - (CA
f
x CA/FMV)
|
CK
1
|
= CKf x
|
CK
f
x CK/SPo
|
|
|
(CK
f
x CK/SPo) - (CK
f
x CK/FMV)
|
VIRGIN MEDIA INC.
|
|
By:
/s/ Authorized Signatory
|
Authorized Signatory
|
Vice President, Legal
|
LIBERTY GLOBAL PLC
|
|
By:
/s/ Authorized Signatory
|
Authorized Signatory
|
Deputy General Counsel, Assistant Secretary
|
|
THE BANK OF NEW YORK MELLON,
as Trustee
|
|
By:
|
Name:
|
Title
|
(i)
|
On April 1 during the Service Period, 50% of the Earned Performance Share Units shall become vested; and
|
(ii)
|
On October 1 during the Service Period, 50% of the Earned Performance Share Units shall become vested.
|
(i)
|
On April 1 during the Service Period, 50% of the Earned Performance Share Units shall become vested; and
|
(ii)
|
On October 1 during the Service Period, 50% of the Earned Performance Share Units shall become vested.”
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Liberty Global plc;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this quarterly report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Michael T. Fries
|
|
Michael T. Fries
|
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Liberty Global plc;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this quarterly report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Charles H.R. Bracken
|
|
Charles H.R. Bracken
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Liberty Global plc;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this quarterly report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
/s/ Bernard G. Dvorak
|
|
Bernard G. Dvorak
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
(Principal Accounting Officer)
|
|
Dated:
|
August 4, 2015
|
|
/s/ Michael T. Fries
|
|
|
|
Michael T. Fries
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
Dated:
|
August 4, 2015
|
|
/s/ Charles H.R. Bracken
|
|
|
|
Charles H.R. Bracken
|
|
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
Dated:
|
August 4, 2015
|
|
/s/ Bernard G. Dvorak
|
|
|
|
Bernard G. Dvorak
|
|
|
|
Executive Vice President and Co-Chief Financial Officer
|
|
|
|
(Principal Accounting Officer)
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
586.6
|
|
|
$
|
232.9
|
|
|
$
|
—
|
|
|
$
|
819.5
|
|
Trade receivables, net
|
1,242.2
|
|
|
115.6
|
|
|
—
|
|
|
1,357.8
|
|
||||
Deferred income taxes
|
287.3
|
|
|
20.4
|
|
|
—
|
|
|
307.7
|
|
||||
Prepaid expenses
|
192.2
|
|
|
19.4
|
|
|
—
|
|
|
211.6
|
|
||||
Derivative instruments
|
245.0
|
|
|
3.3
|
|
|
—
|
|
|
248.3
|
|
||||
Other current assets
|
209.9
|
|
|
100.9
|
|
|
(4.0
|
)
|
|
306.8
|
|
||||
Total current assets
|
2,763.2
|
|
|
492.5
|
|
|
(4.0
|
)
|
|
3,251.7
|
|
||||
Investments
|
2,192.2
|
|
|
—
|
|
|
—
|
|
|
2,192.2
|
|
||||
Property and equipment, net
|
21,864.7
|
|
|
896.4
|
|
|
—
|
|
|
22,761.1
|
|
||||
Goodwill
|
27,342.5
|
|
|
816.5
|
|
|
—
|
|
|
28,159.0
|
|
||||
Intangible assets subject to amortization, net
|
7,874.9
|
|
|
124.6
|
|
|
—
|
|
|
7,999.5
|
|
||||
Other assets, net (note 4)
|
4,720.4
|
|
|
916.8
|
|
|
(7.0
|
)
|
|
5,630.2
|
|
||||
Total assets
|
$
|
66,757.9
|
|
|
$
|
3,246.8
|
|
|
$
|
(11.0
|
)
|
|
$
|
69,993.7
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
$
|
990.3
|
|
|
$
|
71.9
|
|
|
$
|
—
|
|
|
$
|
1,062.2
|
|
Deferred revenue and advance payments from subscribers and others
|
1,398.8
|
|
|
51.0
|
|
|
—
|
|
|
1,449.8
|
|
||||
Current portion of debt and capital lease obligations
|
1,613.0
|
|
|
0.9
|
|
|
—
|
|
|
1,613.9
|
|
||||
Accrued interest
|
650.9
|
|
|
54.2
|
|
|
—
|
|
|
705.1
|
|
||||
Accrued capital expenditures
|
369.4
|
|
|
37.5
|
|
|
—
|
|
|
406.9
|
|
||||
Derivative instruments
|
352.6
|
|
|
32.6
|
|
|
—
|
|
|
385.2
|
|
||||
Other accrued and current liabilities
|
2,228.3
|
|
|
186.3
|
|
|
(4.0
|
)
|
|
2,410.6
|
|
||||
Total current liabilities
|
7,603.3
|
|
|
434.4
|
|
|
(4.0
|
)
|
|
8,033.7
|
|
||||
Long-term debt and capital lease obligations (note 4)
|
42,113.4
|
|
|
2,333.5
|
|
|
(6.8
|
)
|
|
44,440.1
|
|
||||
Other long-term liabilities
|
4,792.4
|
|
|
254.5
|
|
|
(0.2
|
)
|
|
5,046.7
|
|
||||
Total liabilities
|
54,509.1
|
|
|
3,022.4
|
|
|
(11.0
|
)
|
|
57,520.5
|
|
||||
Equity attributable to Liberty Global shareholders (note 4)
|
12,822.5
|
|
|
163.7
|
|
|
—
|
|
|
12,986.2
|
|
||||
Noncontrolling interests
|
(573.7
|
)
|
|
60.7
|
|
|
—
|
|
|
(513.0
|
)
|
||||
Total equity
|
12,248.8
|
|
|
224.4
|
|
|
—
|
|
|
12,473.2
|
|
||||
Total liabilities and equity
|
$
|
66,757.9
|
|
|
$
|
3,246.8
|
|
|
$
|
(11.0
|
)
|
|
$
|
69,993.7
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
1,051.4
|
|
|
$
|
107.1
|
|
|
$
|
—
|
|
|
$
|
1,158.5
|
|
Trade receivables, net
|
1,374.9
|
|
|
124.6
|
|
|
—
|
|
|
1,499.5
|
|
||||
Derivative instruments
|
445.5
|
|
|
1.1
|
|
|
—
|
|
|
446.6
|
|
||||
Deferred income taxes
|
275.6
|
|
|
14.7
|
|
|
—
|
|
|
290.3
|
|
||||
Prepaid expenses
|
179.0
|
|
|
10.7
|
|
|
—
|
|
|
189.7
|
|
||||
Other current assets
|
266.0
|
|
|
73.9
|
|
|
(4.0
|
)
|
|
335.9
|
|
||||
Total current assets
|
3,592.4
|
|
|
332.1
|
|
|
(4.0
|
)
|
|
3,920.5
|
|
||||
Investments
|
1,808.2
|
|
|
—
|
|
|
—
|
|
|
1,808.2
|
|
||||
Property and equipment, net
|
23,016.0
|
|
|
824.6
|
|
|
—
|
|
|
23,840.6
|
|
||||
Goodwill
|
28,214.3
|
|
|
787.3
|
|
|
—
|
|
|
29,001.6
|
|
||||
Intangible assets subject to amortization, net
|
9,119.1
|
|
|
70.7
|
|
|
—
|
|
|
9,189.8
|
|
||||
Other assets, net (note 4)
|
4,334.5
|
|
|
756.3
|
|
|
(9.6
|
)
|
|
5,081.2
|
|
||||
Total assets
|
$
|
70,084.5
|
|
|
$
|
2,771.0
|
|
|
$
|
(13.6
|
)
|
|
$
|
72,841.9
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
$
|
959.7
|
|
|
$
|
79.3
|
|
|
$
|
—
|
|
|
$
|
1,039.0
|
|
Deferred revenue and advance payments from subscribers and others
|
1,407.7
|
|
|
44.5
|
|
|
—
|
|
|
1,452.2
|
|
||||
Current portion of debt and capital lease obligations
|
1,550.2
|
|
|
0.7
|
|
|
—
|
|
|
1,550.9
|
|
||||
Derivative instruments
|
1,004.0
|
|
|
39.7
|
|
|
—
|
|
|
1,043.7
|
|
||||
Accrued interest
|
638.6
|
|
|
52.0
|
|
|
—
|
|
|
690.6
|
|
||||
Accrued capital expenditures
|
393.5
|
|
|
18.9
|
|
|
—
|
|
|
412.4
|
|
||||
Other accrued and current liabilities
|
2,812.7
|
|
|
192.8
|
|
|
(4.0
|
)
|
|
3,001.5
|
|
||||
Total current liabilities
|
8,766.4
|
|
|
427.9
|
|
|
(4.0
|
)
|
|
9,190.3
|
|
||||
Long-term debt and capital lease obligations
|
42,544.7
|
|
|
2,072.8
|
|
|
(9.4
|
)
|
|
44,608.1
|
|
||||
Other long-term liabilities
|
4,726.5
|
|
|
201.2
|
|
|
(0.2
|
)
|
|
4,927.5
|
|
||||
Total liabilities
|
56,037.6
|
|
|
2,701.9
|
|
|
(13.6
|
)
|
|
58,725.9
|
|
||||
Equity attributable to Liberty Global shareholders
|
14,694.3
|
|
|
20.2
|
|
|
—
|
|
|
14,714.5
|
|
||||
Noncontrolling interests
|
(647.4
|
)
|
|
48.9
|
|
|
—
|
|
|
(598.5
|
)
|
||||
Total equity
|
14,046.9
|
|
|
69.1
|
|
|
—
|
|
|
14,116.0
|
|
||||
Total liabilities and equity
|
$
|
70,084.5
|
|
|
$
|
2,771.0
|
|
|
$
|
(13.6
|
)
|
|
$
|
72,841.9
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
4,255.1
|
|
|
$
|
311.4
|
|
|
$
|
—
|
|
|
$
|
4,566.5
|
|
Operating costs and expenses (note 3):
|
|
|
|
|
|
|
|
||||||||
Operating (other than depreciation and amortization) (including share-based compensation)
|
1,527.8
|
|
|
136.7
|
|
|
—
|
|
|
1,664.5
|
|
||||
SG&A (including share-based compensation)
|
724.9
|
|
|
48.7
|
|
|
—
|
|
|
773.6
|
|
||||
Depreciation and amortization
|
1,423.5
|
|
|
54.3
|
|
|
—
|
|
|
1,477.8
|
|
||||
Impairment, restructuring and other operating items, net
|
19.9
|
|
|
5.8
|
|
|
—
|
|
|
25.7
|
|
||||
|
3,696.1
|
|
|
245.5
|
|
|
—
|
|
|
3,941.6
|
|
||||
Operating income
|
559.0
|
|
|
65.9
|
|
|
—
|
|
|
624.9
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(560.6
|
)
|
|
(40.3
|
)
|
|
0.1
|
|
|
(600.8
|
)
|
||||
Realized and unrealized gains (losses) on derivative instruments, net
|
(680.9
|
)
|
|
1.2
|
|
|
—
|
|
|
(679.7
|
)
|
||||
Foreign currency transaction gains (losses), net
|
371.7
|
|
|
(31.3
|
)
|
|
—
|
|
|
340.4
|
|
||||
Realized and unrealized
gains
due to changes in fair values of certain investments, net
|
110.8
|
|
|
—
|
|
|
—
|
|
|
110.8
|
|
||||
Losses on debt modification and extinguishment, net
|
(73.8
|
)
|
|
—
|
|
|
—
|
|
|
(73.8
|
)
|
||||
Other income (expense), net
|
(2.0
|
)
|
|
0.4
|
|
|
(0.1
|
)
|
|
(1.7
|
)
|
||||
|
(834.8
|
)
|
|
(70.0
|
)
|
|
—
|
|
|
(904.8
|
)
|
||||
Loss before income taxes
|
(275.8
|
)
|
|
(4.1
|
)
|
|
—
|
|
|
(279.9
|
)
|
||||
Income tax benefit (
expense)
(note 2)
|
(131.4
|
)
|
|
1.4
|
|
|
—
|
|
|
(130.0
|
)
|
||||
Net loss
|
(407.2
|
)
|
|
(2.7
|
)
|
|
—
|
|
|
(409.9
|
)
|
||||
Net earnings attributable to noncontrolling interests
|
(51.6
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(54.8
|
)
|
||||
Net loss attributable to Liberty Global shareholders
|
$
|
(458.8
|
)
|
|
$
|
(5.9
|
)
|
|
$
|
—
|
|
|
$
|
(464.7
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(407.2
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
—
|
|
|
$
|
(409.9
|
)
|
Other comprehensive earnings, net of taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
925.5
|
|
|
4.2
|
|
|
—
|
|
|
929.7
|
|
||||
Reclassification adjustments included in net loss
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
||||
Pension-related adjustments and other
|
0.5
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
||||
Other comprehensive earnings
|
926.9
|
|
|
4.2
|
|
|
—
|
|
|
931.1
|
|
||||
Comprehensive earnings (loss)
|
519.7
|
|
|
1.5
|
|
|
—
|
|
|
521.2
|
|
||||
Comprehensive earnings attributable to noncontrolling interests
|
(51.6
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(54.8
|
)
|
||||
Comprehensive earnings (loss) attributable to Liberty Global shareholders
|
$
|
468.1
|
|
|
$
|
(1.7
|
)
|
|
$
|
—
|
|
|
$
|
466.4
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
4,295.8
|
|
|
$
|
306.4
|
|
|
$
|
—
|
|
|
$
|
4,602.2
|
|
Operating costs and expenses (note 3):
|
|
|
|
|
|
|
|
||||||||
Operating (other than depreciation and amortization) (including share-based compensation)
|
1,583.8
|
|
|
135.4
|
|
|
—
|
|
|
1,719.2
|
|
||||
SG&A (including share-based compensation)
|
737.9
|
|
|
54.6
|
|
|
—
|
|
|
792.5
|
|
||||
Depreciation and amortization
|
1,341.4
|
|
|
52.0
|
|
|
—
|
|
|
1,393.4
|
|
||||
Impairment, restructuring and other operating items, net
|
25.8
|
|
|
1.8
|
|
|
—
|
|
|
27.6
|
|
||||
|
3,688.9
|
|
|
243.8
|
|
|
—
|
|
|
3,932.7
|
|
||||
Operating income
|
606.9
|
|
|
62.6
|
|
|
—
|
|
|
669.5
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(604.4
|
)
|
|
(37.8
|
)
|
|
0.4
|
|
|
(641.8
|
)
|
||||
Realized and unrealized gains (
losses)
on derivative instruments, net
|
(330.4
|
)
|
|
1.8
|
|
|
—
|
|
|
(328.6
|
)
|
||||
Foreign currency transaction losses, net
|
(32.0
|
)
|
|
(4.4
|
)
|
|
—
|
|
|
(36.4
|
)
|
||||
Realized and unrealized
gains
due to changes in fair values of certain investments, net
|
157.4
|
|
|
—
|
|
|
—
|
|
|
157.4
|
|
||||
Losses on debt modification and extinguishment, net
|
(53.0
|
)
|
|
—
|
|
|
—
|
|
|
(53.0
|
)
|
||||
Other income (expense), net
|
(1.8
|
)
|
|
0.5
|
|
|
(0.4
|
)
|
|
(1.7
|
)
|
||||
|
(864.2
|
)
|
|
(39.9
|
)
|
|
—
|
|
|
(904.1
|
)
|
||||
Earnings (loss) from continuing operations before income taxes
|
(257.3
|
)
|
|
22.7
|
|
|
—
|
|
|
(234.6
|
)
|
||||
Income tax benefit (expense) (note 2)
|
11.0
|
|
|
(10.4
|
)
|
|
—
|
|
|
0.6
|
|
||||
Earnings (loss)
from continuing operations
|
(246.3
|
)
|
|
12.3
|
|
|
—
|
|
|
(234.0
|
)
|
||||
Adjustment to gain on disposal of discontinued operations, net of taxes
|
(7.2
|
)
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
||||
Net earnings (loss)
|
(253.5
|
)
|
|
12.3
|
|
|
—
|
|
|
(241.2
|
)
|
||||
Net earnings attributable to noncontrolling interests
|
(7.5
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(8.7
|
)
|
||||
Net earnings (loss) attributable to Liberty Global shareholders
|
$
|
(261.0
|
)
|
|
$
|
11.1
|
|
|
$
|
—
|
|
|
$
|
(249.9
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
(253.5
|
)
|
|
$
|
12.3
|
|
|
$
|
—
|
|
|
$
|
(241.2
|
)
|
Other comprehensive earnings (loss), net of taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
422.2
|
|
|
(5.3
|
)
|
|
—
|
|
|
416.9
|
|
||||
Reclassification adjustments included in net loss
|
0.1
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Other comprehensive earnings (loss)
|
422.3
|
|
|
(5.3
|
)
|
|
—
|
|
|
417.0
|
|
||||
Comprehensive earnings
|
168.8
|
|
|
7.0
|
|
|
—
|
|
|
175.8
|
|
||||
Comprehensive earnings attributable to noncontrolling interests
|
(7.7
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(8.9
|
)
|
||||
Comprehensive earnings attributable to Liberty Global shareholders
|
$
|
161.1
|
|
|
$
|
5.8
|
|
|
$
|
—
|
|
|
$
|
166.9
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
8,484.2
|
|
|
$
|
599.2
|
|
|
$
|
—
|
|
|
$
|
9,083.4
|
|
Operating costs and expenses (note 3):
|
|
|
|
|
|
|
|
||||||||
Operating (other than depreciation and amortization) (including share-based compensation)
|
3,084.9
|
|
|
265.5
|
|
|
—
|
|
|
3,350.4
|
|
||||
SG&A (including share-based compensation)
|
1,480.3
|
|
|
98.4
|
|
|
—
|
|
|
1,578.7
|
|
||||
Depreciation and amortization
|
2,822.7
|
|
|
106.5
|
|
|
—
|
|
|
2,929.2
|
|
||||
Impairment, restructuring and other operating items, net
|
31.8
|
|
|
10.9
|
|
|
—
|
|
|
42.7
|
|
||||
|
7,419.7
|
|
|
481.3
|
|
|
—
|
|
|
7,901.0
|
|
||||
Operating income
|
1,064.5
|
|
|
117.9
|
|
|
—
|
|
|
1,182.4
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(1,138.2
|
)
|
|
(78.8
|
)
|
|
0.3
|
|
|
(1,216.7
|
)
|
||||
Realized and unrealized gains (losses) on derivative instruments, net
|
(141.8
|
)
|
|
80.6
|
|
|
—
|
|
|
(61.2
|
)
|
||||
Foreign currency transaction losses, net
|
(621.5
|
)
|
|
(73.7
|
)
|
|
—
|
|
|
(695.2
|
)
|
||||
Realized and unrealized
gains
due to changes in fair values of certain investments, net
|
262.2
|
|
|
—
|
|
|
—
|
|
|
262.2
|
|
||||
Losses on debt modification and extinguishment, net
|
(348.3
|
)
|
|
—
|
|
|
—
|
|
|
(348.3
|
)
|
||||
Other income (expense), net
|
(2.6
|
)
|
|
0.2
|
|
|
(0.3
|
)
|
|
(2.7
|
)
|
||||
|
(1,990.2
|
)
|
|
(71.7
|
)
|
|
—
|
|
|
(2,061.9
|
)
|
||||
Earnings (loss) before income taxes
|
(925.7
|
)
|
|
46.2
|
|
|
—
|
|
|
(879.5
|
)
|
||||
Income tax
expense
(note 2)
|
(37.6
|
)
|
|
(14.5
|
)
|
|
—
|
|
|
(52.1
|
)
|
||||
Net earnings (loss)
|
(963.3
|
)
|
|
31.7
|
|
|
—
|
|
|
(931.6
|
)
|
||||
Net earnings attributable to noncontrolling interests
|
(65.6
|
)
|
|
(5.0
|
)
|
|
—
|
|
|
(70.6
|
)
|
||||
Net earnings (loss) attributable to Liberty Global shareholders
|
$
|
(1,028.9
|
)
|
|
$
|
26.7
|
|
|
$
|
—
|
|
|
$
|
(1,002.2
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
(963.3
|
)
|
|
$
|
31.7
|
|
|
$
|
—
|
|
|
$
|
(931.6
|
)
|
Other comprehensive earnings (loss), net of taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
226.9
|
|
|
11.7
|
|
|
—
|
|
|
238.6
|
|
||||
Reclassification adjustments included in net loss
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
Pension-related adjustments and other
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
||||
Other comprehensive earnings
|
226.9
|
|
|
11.7
|
|
|
—
|
|
|
238.6
|
|
||||
Comprehensive earnings (loss)
|
(736.4
|
)
|
|
43.4
|
|
|
—
|
|
|
(693.0
|
)
|
||||
Comprehensive earnings attributable to noncontrolling interests
|
(65.7
|
)
|
|
(5.0
|
)
|
|
—
|
|
|
(70.7
|
)
|
||||
Comprehensive earnings (loss) attributable to Liberty Global shareholders
|
$
|
(802.1
|
)
|
|
$
|
38.4
|
|
|
$
|
—
|
|
|
$
|
(763.7
|
)
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
8,529.6
|
|
|
$
|
606.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
9,135.9
|
|
Operating costs and expenses (note 3):
|
|
|
|
|
|
|
|
||||||||
Operating (other than depreciation and amortization) (including share-based compensation)
|
3,146.4
|
|
|
271.7
|
|
|
(0.1
|
)
|
|
3,418.0
|
|
||||
SG&A (including share-based compensation)
|
1,445.8
|
|
|
109.2
|
|
|
—
|
|
|
1,555.0
|
|
||||
Depreciation and amortization
|
2,666.6
|
|
|
103.9
|
|
|
—
|
|
|
2,770.5
|
|
||||
Impairment, restructuring and other operating items, net
|
138.4
|
|
|
2.8
|
|
|
—
|
|
|
141.2
|
|
||||
|
7,397.2
|
|
|
487.6
|
|
|
(0.1
|
)
|
|
7,884.7
|
|
||||
Operating income
|
1,132.4
|
|
|
118.8
|
|
|
—
|
|
|
1,251.2
|
|
||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(1,226.2
|
)
|
|
(69.8
|
)
|
|
0.7
|
|
|
(1,295.3
|
)
|
||||
Realized and unrealized
losses
on derivative instruments, net
|
(580.4
|
)
|
|
(124.8
|
)
|
|
—
|
|
|
(705.2
|
)
|
||||
Foreign currency transaction gains (losses), net
|
(78.5
|
)
|
|
21.3
|
|
|
—
|
|
|
(57.2
|
)
|
||||
Realized and unrealized
gains
due to changes in fair values of certain investments, net
|
97.2
|
|
|
—
|
|
|
—
|
|
|
97.2
|
|
||||
Losses on debt modification and extinguishment, net
|
(71.9
|
)
|
|
(2.0
|
)
|
|
—
|
|
|
(73.9
|
)
|
||||
Other income, net
|
11.0
|
|
|
1.3
|
|
|
(0.7
|
)
|
|
11.6
|
|
||||
|
(1,848.8
|
)
|
|
(174.0
|
)
|
|
—
|
|
|
(2,022.8
|
)
|
||||
Loss from continuing operations before income taxes
|
(716.4
|
)
|
|
(55.2
|
)
|
|
—
|
|
|
(771.6
|
)
|
||||
Income tax benefit (expense) (note 2)
|
118.2
|
|
|
(0.6
|
)
|
|
—
|
|
|
117.6
|
|
||||
Loss
from continuing operations
|
(598.2
|
)
|
|
(55.8
|
)
|
|
—
|
|
|
(654.0
|
)
|
||||
Discontinued operation:
|
|
|
|
|
|
|
|
||||||||
Earnings from discontinued operation, net of taxes
|
0.8
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||
Gain on disposal of discontinued operation, net of taxes
|
332.7
|
|
|
—
|
|
|
—
|
|
|
332.7
|
|
||||
|
333.5
|
|
|
—
|
|
|
—
|
|
|
333.5
|
|
||||
Net loss
|
(264.7
|
)
|
|
(55.8
|
)
|
|
—
|
|
|
(320.5
|
)
|
||||
Net loss (earnings) attributable to noncontrolling interests
|
(10.8
|
)
|
|
2.6
|
|
|
—
|
|
|
(8.2
|
)
|
||||
Net loss attributable to Liberty Global shareholders
|
$
|
(275.5
|
)
|
|
$
|
(53.2
|
)
|
|
$
|
—
|
|
|
$
|
(328.7
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(264.7
|
)
|
|
$
|
(55.8
|
)
|
|
$
|
—
|
|
|
$
|
(320.5
|
)
|
Other comprehensive earnings (loss), net of taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
562.2
|
|
|
(87.2
|
)
|
|
—
|
|
|
475.0
|
|
||||
Reclassification adjustments included in net loss
|
64.2
|
|
|
—
|
|
|
—
|
|
|
64.2
|
|
||||
Other comprehensive earnings (loss)
|
626.4
|
|
|
(87.2
|
)
|
|
—
|
|
|
539.2
|
|
||||
Comprehensive earnings (loss)
|
361.7
|
|
|
(143.0
|
)
|
|
—
|
|
|
218.7
|
|
||||
Comprehensive loss (earnings) attributable to noncontrolling interests
|
(11.0
|
)
|
|
2.6
|
|
|
—
|
|
|
(8.4
|
)
|
||||
Comprehensive earnings (loss) attributable to Liberty Global shareholders
|
$
|
350.7
|
|
|
$
|
(140.4
|
)
|
|
$
|
—
|
|
|
$
|
210.3
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss)
|
$
|
(963.3
|
)
|
|
31.7
|
|
|
$
|
—
|
|
|
$
|
(931.6
|
)
|
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
|
127.5
|
|
|
0.5
|
|
|
—
|
|
|
128.0
|
|
||||
Depreciation and amortization
|
2,822.7
|
|
|
106.5
|
|
|
—
|
|
|
2,929.2
|
|
||||
Impairment, restructuring and other operating items, net
|
31.8
|
|
|
10.9
|
|
|
—
|
|
|
42.7
|
|
||||
Amortization of deferred financing costs and non-cash interest accretion
|
32.3
|
|
|
1.9
|
|
|
—
|
|
|
34.2
|
|
||||
Realized and unrealized losses (gains) on derivative instruments, net
|
141.8
|
|
|
(80.6
|
)
|
|
—
|
|
|
61.2
|
|
||||
Foreign currency transaction losses, net
|
621.5
|
|
|
73.7
|
|
|
—
|
|
|
695.2
|
|
||||
Realized and unrealized gains due to changes in fair values of certain investments, including impact of dividends
|
(261.1
|
)
|
|
—
|
|
|
—
|
|
|
(261.1
|
)
|
||||
Losses on debt modification and extinguishment, net
|
348.3
|
|
|
—
|
|
|
—
|
|
|
348.3
|
|
||||
Deferred income tax benefit
|
(135.0
|
)
|
|
(7.7
|
)
|
|
—
|
|
|
(142.7
|
)
|
||||
Excess tax benefits from share-based compensation
|
(16.0
|
)
|
|
(1.9
|
)
|
|
—
|
|
|
(17.9
|
)
|
||||
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions
|
(198.4
|
)
|
|
(1.3
|
)
|
|
—
|
|
|
(199.7
|
)
|
||||
Net cash provided by operating activities
|
2,552.1
|
|
|
133.7
|
|
|
—
|
|
|
2,685.8
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
(1,151.0
|
)
|
|
(111.4
|
)
|
|
—
|
|
|
(1,262.4
|
)
|
||||
Cash paid in connection with acquisitions, net of cash acquired
|
(6.8
|
)
|
|
(272.5
|
)
|
|
—
|
|
|
(279.3
|
)
|
||||
Investments in and loans to affiliates and others
|
(160.9
|
)
|
|
(0.5
|
)
|
|
—
|
|
|
(161.4
|
)
|
||||
Inter-group receipts (payments), net
|
(110.2
|
)
|
|
2.9
|
|
|
107.3
|
|
|
—
|
|
||||
Other investing activities, net
|
10.4
|
|
|
0.6
|
|
|
—
|
|
|
11.0
|
|
||||
Net cash used by investing activities
|
$
|
(1,418.5
|
)
|
|
$
|
(380.9
|
)
|
|
$
|
107.3
|
|
|
$
|
(1,692.1
|
)
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Borrowings of debt
|
$
|
10,931.2
|
|
|
$
|
261.1
|
|
|
$
|
—
|
|
|
$
|
11,192.3
|
|
Repayments and repurchases of debt and capital lease obligations
|
(10,717.4
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
(10,717.8
|
)
|
||||
Repurchase of Old Liberty Global Ordinary Shares
|
(908.1
|
)
|
|
—
|
|
|
—
|
|
|
(908.1
|
)
|
||||
Payment of financing costs and debt premiums
|
(353.4
|
)
|
|
(3.1
|
)
|
|
—
|
|
|
(356.5
|
)
|
||||
Net cash paid related to derivative instruments
|
(303.3
|
)
|
|
—
|
|
|
—
|
|
|
(303.3
|
)
|
||||
Purchase of additional shares of subsidiaries
|
(142.2
|
)
|
|
—
|
|
|
—
|
|
|
(142.2
|
)
|
||||
Net cash paid associated with call option contracts on Old Liberty Global Ordinary Shares
|
(121.2
|
)
|
|
—
|
|
|
—
|
|
|
(121.2
|
)
|
||||
Inter-group receipts (payments), net
|
(2.9
|
)
|
|
110.2
|
|
|
(107.3
|
)
|
|
—
|
|
||||
Other financing activities, net
|
15.8
|
|
|
8.5
|
|
|
—
|
|
|
24.3
|
|
||||
Net cash provided (used) by financing activities
|
(1,601.5
|
)
|
|
376.3
|
|
|
(107.3
|
)
|
|
(1,332.5
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate changes on cash
|
3.1
|
|
|
(3.3
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(464.8
|
)
|
|
125.8
|
|
|
—
|
|
|
(339.0
|
)
|
||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
1,051.4
|
|
|
107.1
|
|
|
—
|
|
|
1,158.5
|
|
||||
End of period
|
$
|
586.6
|
|
|
$
|
232.9
|
|
|
$
|
—
|
|
|
$
|
819.5
|
|
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest
|
$
|
1,065.6
|
|
|
$
|
72.6
|
|
|
$
|
—
|
|
|
$
|
1,138.2
|
|
Net cash paid for taxes
|
$
|
152.9
|
|
|
$
|
14.4
|
|
|
$
|
—
|
|
|
$
|
167.3
|
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(264.7
|
)
|
|
$
|
(55.8
|
)
|
|
$
|
—
|
|
|
$
|
(320.5
|
)
|
Earnings from discontinued operation
|
(333.5
|
)
|
|
—
|
|
|
—
|
|
|
(333.5
|
)
|
||||
Loss from continuing operations
|
(598.2
|
)
|
|
(55.8
|
)
|
|
—
|
|
|
(654.0
|
)
|
||||
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Share-based compensation expense
|
105.4
|
|
|
4.1
|
|
|
—
|
|
|
109.5
|
|
||||
Depreciation and amortization
|
2,666.6
|
|
|
103.9
|
|
|
—
|
|
|
2,770.5
|
|
||||
Impairment, restructuring and other operating items, net
|
138.4
|
|
|
2.8
|
|
|
—
|
|
|
141.2
|
|
||||
Amortization of deferred financing costs and non-cash interest accretion
|
40.1
|
|
|
1.7
|
|
|
—
|
|
|
41.8
|
|
||||
Realized and unrealized losses on derivative instruments, net
|
580.4
|
|
|
124.8
|
|
|
—
|
|
|
705.2
|
|
||||
Foreign currency transaction losses (gains), net
|
78.5
|
|
|
(21.3
|
)
|
|
—
|
|
|
57.2
|
|
||||
Realized and unrealized gains due to changes in fair values of certain investments, including impact of dividends
|
(97.2
|
)
|
|
—
|
|
|
—
|
|
|
(97.2
|
)
|
||||
Losses on debt modification and extinguishment, net
|
71.9
|
|
|
2.0
|
|
|
—
|
|
|
73.9
|
|
||||
Deferred income tax benefit
|
(231.7
|
)
|
|
(16.7
|
)
|
|
—
|
|
|
(248.4
|
)
|
||||
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions
|
(7.6
|
)
|
|
24.6
|
|
|
—
|
|
|
17.0
|
|
||||
Net cash used by operating activities of discontinued operation
|
(9.6
|
)
|
|
—
|
|
|
—
|
|
|
(9.6
|
)
|
||||
Net cash provided by operating activities
|
2,737.0
|
|
|
170.1
|
|
|
—
|
|
|
2,907.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
(1,294.4
|
)
|
|
(107.6
|
)
|
|
—
|
|
|
(1,402.0
|
)
|
||||
Proceeds received upon disposition of discontinued operation, net of disposal costs
|
985.2
|
|
|
—
|
|
|
—
|
|
|
985.2
|
|
||||
Cash paid in connection with acquisitions, net of cash acquired
|
(32.3
|
)
|
|
—
|
|
|
—
|
|
|
(32.3
|
)
|
||||
Investments in and loans to affiliates and others
|
(17.9
|
)
|
|
(0.7
|
)
|
|
—
|
|
|
(18.6
|
)
|
||||
Inter-group receipts (payments), net
|
441.8
|
|
|
—
|
|
|
(441.8
|
)
|
|
—
|
|
||||
Other investing activities, net
|
10.8
|
|
|
0.3
|
|
|
—
|
|
|
11.1
|
|
||||
Net cash used by investing activities of discontinued operation
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
(3.8
|
)
|
||||
Net cash provided (used) by investing activities
|
$
|
89.4
|
|
|
$
|
(108.0
|
)
|
|
$
|
(441.8
|
)
|
|
$
|
(460.4
|
)
|
|
Attributed to:
|
|
|
|
|
||||||||||
|
Liberty Global Group
|
|
LiLAC Group
|
|
Inter-group eliminations
|
|
Consolidated Liberty Global
|
||||||||
|
in millions
|
||||||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Repayments and repurchases of debt and capital lease obligations
|
(6,203.6
|
)
|
|
(125.3
|
)
|
|
—
|
|
|
$
|
(6,328.9
|
)
|
|||
Borrowings of debt
|
$
|
3,581.3
|
|
|
$
|
24.5
|
|
|
$
|
—
|
|
|
3,605.8
|
|
|
Repurchase of Old Liberty Global Ordinary Shares
|
(895.9
|
)
|
|
—
|
|
|
—
|
|
|
(895.9
|
)
|
||||
Net cash paid related to derivative instruments
|
(140.2
|
)
|
|
(37.4
|
)
|
|
—
|
|
|
(177.6
|
)
|
||||
Payment of financing costs and debt premiums
|
(142.8
|
)
|
|
(29.4
|
)
|
|
—
|
|
|
(172.2
|
)
|
||||
Net cash paid associated with call option contracts on Old Liberty Global Ordinary Shares
|
(98.8
|
)
|
|
—
|
|
|
—
|
|
|
(98.8
|
)
|
||||
Inter-group receipts (payments), net
|
(481.4
|
)
|
|
39.6
|
|
|
441.8
|
|
|
—
|
|
||||
Other financing activities, net
|
3.6
|
|
|
4.1
|
|
|
—
|
|
|
7.7
|
|
||||
Net cash used by financing activities of discontinued operation
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
||||
Net cash used by financing activities
|
(4,379.0
|
)
|
|
(123.9
|
)
|
|
441.8
|
|
|
(4,061.1
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Effect of exchange rate changes on cash
|
23.9
|
|
|
(1.2
|
)
|
|
—
|
|
|
22.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net decrease in cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
(1,514.1
|
)
|
|
(63.0
|
)
|
|
—
|
|
|
(1,577.1
|
)
|
||||
Discontinued operation
|
(14.6
|
)
|
|
—
|
|
|
—
|
|
|
(14.6
|
)
|
||||
Net decrease in cash and cash equivalents
|
(1,528.7
|
)
|
|
(63.0
|
)
|
|
—
|
|
|
(1,591.7
|
)
|
||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
2,526.9
|
|
|
175.0
|
|
|
—
|
|
|
2,701.9
|
|
||||
End of period
|
$
|
998.2
|
|
|
$
|
112.0
|
|
|
$
|
—
|
|
|
$
|
1,110.2
|
|
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest – continuing operations
|
$
|
1,172.3
|
|
|
$
|
29.9
|
|
|
$
|
(3.1
|
)
|
|
$
|
1,199.1
|
|
Net cash paid for taxes:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
34.2
|
|
|
$
|
20.3
|
|
|
$
|
—
|
|
|
$
|
54.5
|
|
Discontinued operation
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
||||
Total
|
$
|
36.4
|
|
|
$
|
20.3
|
|
|
$
|
—
|
|
|
$
|
56.7
|
|
(
1
)
|
Attributed Financial Information
|
|
Liberty Global Group
|
||||||||||||||
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Computed “expected” tax benefit (a)
|
$
|
55.2
|
|
|
$
|
54.0
|
|
|
$
|
185.1
|
|
|
$
|
150.4
|
|
Change in valuation allowances (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(156.0
|
)
|
|
(189.8
|
)
|
|
(377.1
|
)
|
|
(243.0
|
)
|
||||
Increase
|
36.3
|
|
|
101.3
|
|
|
35.2
|
|
|
106.2
|
|
||||
International rate differences (b) (c):
|
|
|
|
|
|
|
|
||||||||
Increase
|
30.4
|
|
|
57.0
|
|
|
123.3
|
|
|
116.4
|
|
||||
Decrease
|
(20.0
|
)
|
|
(8.0
|
)
|
|
(31.3
|
)
|
|
(10.4
|
)
|
||||
Tax effect of intercompany financing
|
38.5
|
|
|
41.0
|
|
|
76.7
|
|
|
81.5
|
|
||||
Non-deductible or non-taxable foreign currency exchange results (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(21.2
|
)
|
|
(17.4
|
)
|
|
(29.9
|
)
|
|
(23.9
|
)
|
||||
Increase
|
(67.3
|
)
|
|
(1.5
|
)
|
|
2.2
|
|
|
0.6
|
|
||||
Non-deductible or non-taxable interest and other expenses (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(15.4
|
)
|
|
(52.5
|
)
|
|
(48.9
|
)
|
|
(83.5
|
)
|
||||
Increase
|
12.1
|
|
|
16.1
|
|
|
23.3
|
|
|
31.1
|
|
||||
Recognition of previously unrecognized tax benefits
|
4.7
|
|
|
—
|
|
|
13.6
|
|
|
28.8
|
|
||||
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(24.3
|
)
|
|
5.9
|
|
|
(24.3
|
)
|
|
(43.4
|
)
|
||||
Increase
|
(2.7
|
)
|
|
3.8
|
|
|
11.8
|
|
|
4.3
|
|
||||
Tax benefit associated with technology innovation
|
6.6
|
|
|
—
|
|
|
10.5
|
|
|
—
|
|
||||
Other, net
|
(8.3
|
)
|
|
1.1
|
|
|
(7.8
|
)
|
|
3.1
|
|
||||
Total income tax benefit (expense)
|
$
|
(131.4
|
)
|
|
$
|
11.0
|
|
|
$
|
(37.6
|
)
|
|
$
|
118.2
|
|
(a)
|
The statutory or “expected” tax rates are the
U.K.
rates of
20.0%
for the 2015 periods and
21.0%
for 2014 periods.
|
(b)
|
Country jurisdictions giving rise to increases within the
six
-month period are grouped together and shown separately from country jurisdictions giving rise to decreases within the
six
-month period.
|
(c)
|
Amounts reflect adjustments (either an increase or a decrease) to “expected” tax benefit for statutory rates in jurisdictions in which we operate outside of the
U.K.
|
|
LiLAC Group
|
||||||||||||||
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
in millions
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Computed “expected” tax benefit (expense) (a)
|
$
|
0.8
|
|
|
$
|
(4.7
|
)
|
|
$
|
(9.2
|
)
|
|
$
|
11.6
|
|
Basis and other differences in the treatment of items associated with investments in subsidiaries and affiliates
|
(2.4
|
)
|
|
(2.2
|
)
|
|
(3.4
|
)
|
|
(2.5
|
)
|
||||
International rate differences (b) (c):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(1.0
|
)
|
|
(0.3
|
)
|
|
(3.2
|
)
|
|
(3.4
|
)
|
||||
Increase
|
1.0
|
|
|
—
|
|
|
2.0
|
|
|
0.1
|
|
||||
Change in valuation allowances (b):
|
|
|
|
|
|
|
|
||||||||
Decrease
|
(4.3
|
)
|
|
(3.7
|
)
|
|
(9.2
|
)
|
|
(5.7
|
)
|
||||
Increase
|
6.5
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
||||
Other, net
|
0.8
|
|
|
0.5
|
|
|
(0.1
|
)
|
|
(0.7
|
)
|
||||
Total income tax benefit (expense)
|
$
|
1.4
|
|
|
$
|
(10.4
|
)
|
|
$
|
(14.5
|
)
|
|
$
|
(0.6
|
)
|
(a)
|
The statutory or “expected” tax rates are the
U.K.
rates of
20.0%
for the 2015 periods and
21.0%
for 2014 periods.
|
(b)
|
Country jurisdictions giving rise to increases within the
six
-month period are grouped together and shown separately from country jurisdictions giving rise to decreases within the
six
-month period.
|
(c)
|
Amounts reflect adjustments (either an increase or a decrease) to “expected” tax benefit for statutory rates in jurisdictions in which we operate outside of the
U.K.
|
(
3
)
|
Allocated Expenses
|
(
4
)
|
Inter-group Transactions
|
(
5
)
|
Commitments
|
(a)
|
The commitments reflected in this table do not reflect any liabilities that are included in our
June 30, 2015
attributed balance sheet information.
|