Advertisement
The deferred revenue relates to Energy Services' unearned service revenue and Speciality Chemicals' unearned product-related revenues.
11. Borrowing
December December Year of Effective Interest 31, 31, Maturity Rate 2012 2011----------------------------------------------------------------------------Revolving term bank credits(1) Bankers Acceptances Floating BA rate (BA) plus applicable 2015 credit spread 148.6 219.5 Canadian Prime Rate Prime rate plus Loan 2015 credit spread 13.0 19.8 LIBOR Loans Floating LIBOR rate plus applicable 2015 credit spread 137.3 141.3 (US$138. million; 2011- US$138.9 million) US Base Rate Loan US Prime rate plus 2015 credit spread 34.5 29.7 (US$34.6 million; 2011- US$29.2 million)---------------------------------------------------------------------------- 333.4 410.3----------------------------------------------------------------------------Other Debt Deferred Non-interest- consideration 2013-2016 bearing 2.7 4.0---------------------------------------------------------------------------- 2.7 4.0----------------------------------------------------------------------------Senior Secured Notes(2)---------------------------------------------------------------------------- Senior secured notes subject to fixed interest rates (US$92.0 million; 2011 - US$124.0 million) 2013-2015 7.65% 91.5 126.1----------------------------------------------------------------------------Senior Unsecured Debentures---------------------------------------------------------------------------- Senior unsecured debentures 2016 8.25% 150.0 150.0----------------------------------------------------------------------------Finance Lease Obligations---------------------------------------------------------------------------- Finance lease obligations 62.0 71.7--------------------------------------------------------------------------------------------------------------------------------------------------------Total borrowing before deferred financing fees 639.6 762.1Deferred financing fees (5.2) (6.4)----------------------------------------------------------------------------Borrowing 634.4 755.7Current maturities (59.7) (54.3)----------------------------------------------------------------------------Borrowing 574.7 701.4--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Superior and its wholly-owned subsidiaries, Superior Plus Financing Inc. and Commercial E Industrial (Chile) Limitada, reduced the revolving term bank credit borrowing capacity to $570 million from $615 million on March 28, 2012. The credit facilities mature on June 27, 2015 and are secured by a general charge over the assets of Superior and certain of its subsidiaries. As at December 31, 2012, Superior had $31.3 million of outstanding letters of credit (December 31, 2011 - $34.8 million) and approximately $121.9 million of outstanding financial guarantees (December 31, 2011 - $84.2 million). The fair value of Superior's revolving term bank credits, other debt, letters of credit, and financial guarantees approximates their carrying value as a result of the market based-interest rates, the short-term nature of the underlying debt instruments and other related factors.(2) Senior secured notes (the Notes) totalling US$92.0 million and US$124.0 million (respectively, CDN$126.1 million at December 31, 2012 and CDN $126.1 million at December 31, 2011) are secured by a general charge over the assets of Superior and certain of its subsidiaries. Principal repayments began in the fourth quarter of 2009. Management has estimated the fair value of the Notes based on comparisons to treasury instruments with similar maturities, interest rates and credit risk profiles. The estimated fair value of the Notes as at December 31, 2012 was CDN$94.4 million (December 31, 2011 - CDN$121.1 million).
