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The carrying values recognized in each previous CGU are provided for illustration and comparison to the revised CGUs as follows:
Previous CGUs Horizontal Deep Shallow Non-Core Total Oil CGU Gas CGU Gas CGU CGU (1)Carrying amount, December 31, 2011 $ 215,556 $ 82,090 $ 83,216 $ 24,608 $405,470Carrying amount, December 31, 2012 $ 219,057 $ 16,088 $ 41,591 $ 7,867 $284,603Revised CGUs Horizontal Cardium Total CGU Gas CGU (1)Carrying amount, December 31, 2012 $ 219,057 $ 65,546 $284,603----------------------------------------------------------------------------
(1) Carrying amounts exclude inventory and corporate assets of $1.5 million at December 31, 2011, and $1.6 million at December 31, 2012.
8. BANK LOANS
At December 31, 2012, total bank facilities were $65 million, consisting of a $55 million revolving term credit facility and a $10 million working capital credit facility with a syndicate of Canadian banks. The revolving term credit facility and the working capital credit facility have a maturity date of July 10, 2013, and all outstanding advances become repayable on July 10, 2013. Accordingly, on December 31, 2012, the bank loans have been classified as a current liability. Under the agreement, advances can be drawn in either Canadian or U.S. funds and bear interest at the bank's prime lending rate, bankers' acceptance or LIBOR loan rates plus applicable margins. These margins vary from 3% to 4% depending on the borrowing option used. At December 31, 2012, no amounts were drawn in U.S. funds.
The average effective interest rate on advances under the facilities in 2012 was 4.7% (December 31, 2011 - 5.3%). The Company had $0.4 million in letters of credit outstanding at December 31, 2012 that reduce the amount of credit available to the Company.
Loans are secured by a floating charge debenture over all assets and guarantees by material subsidiaries.
The available lending limits of the facilities are scheduled to be reviewed on or before May 15, 2013 and are based on the bank syndicate's interpretations of the Company's reserves and future commodity prices. There can be no assurance that the amount or terms of the available facilities will not be adjusted at the next review.
9. CONVERTIBLE DEBENTURES
On December 31, 2010, the Company issued $50 million of convertible unsecured subordinated debentures (the "Series A Debentures") on a bought deal basis. The Series A Debentures have a face value of $1,000, bear interest at the rate of 7.5% per annum payable semi-annually in arrears on the last day of January and July of each year commencing on July 31, 2011 and mature on January 31, 2016 (the "Maturity Date"). The Series A Debentures are convertible at the holder's option at a conversion price of $1.55 per common share (the "Conversion Price"), subject to adjustment in certain events. The Series A Debentures are not redeemable by the Company before January 31, 2014. On or after January 31, 2014 and prior to the Maturity Date, the Series A Debentures are redeemable at the Company's option, in whole or in part, at a price equal to their principal amount plus accrued and unpaid interest if the weighted average trading price of the common shares on the Toronto Stock Exchange for the 20 consecutive trading days preceding the date on which the notice of redemption is given is not less than 125% of the Conversion Price. The Series A Debentures are listed and posted for trading on the TSX under the symbol "AXL.DB".
