Advertisement
In the first quarter of 2013, $9.3 million in investment tax credits were reclassified to prepaid expenses and other assets.
5. Operating Loans and Long-Term Debt
(a) Available Operating Loans
As at As at March 31, December 31,(millions of Canadian dollars) 2013 2012--------------------------------------------------------------------------Canfor (excluding CPLP)Total operating loans - Canfor (excluding CPLP) $ 350.0 $ 350.0Drawn (40.0) (27.0)Letters of credit (principally unregistered pension plans) (18.0) (18.0)--------------------------------------------------------------------------Total available operating loans - Canfor (excluding CPLP) $ 292.0 $ 305.0--------------------------------------------------------------------------CPLPOperating loan facility $ 110.0 $ 110.0Facility for BC Hydro letter of credit 7.5 7.5--------------------------------------------------------------------------Total operating loans - CPLP 117.5 117.5Drawn - -Letters of credit (for general business purposes) (2.2) (1.7)BC Hydro letter of credit (7.5) (7.5)--------------------------------------------------------------------------Total available operating loans - CPLP $ 107.8 $ 108.3--------------------------------------------------------------------------Consolidated:Total operating loans $ 467.5 $ 467.5Total available operating loans $ 399.8 $ 413.3----------------------------------------------------------------------------------------------------------------------------------------------------
In the first quarter of 2013, the maturity on Canfor's, excluding Canfor Pulp Limited Partnership ("CPLP"), principal operating loans was extended from October 31, 2015 to February 28, 2018. All other terms remain the same with interest payable at floating rates based on lenders' Canadian prime rate, bankers acceptances, US dollar base rate or US dollar LIBOR rate, plus a margin that varies with the Company's net debt to total capitalization ratio.
The terms of CPLP's operating loan facility include interest payable at floating rates that vary depending on the ratio of net debt to operating earnings before interest, taxes, depreciation, amortization and certain other non-cash items, and is based on lenders' Canadian prime rate, bankers acceptances, US dollar base rate or US dollar LIBOR rate, plus a margin. The facility has certain financial covenants that stipulate maximum net debt to total capitalization ratios and minimum net worth amounts based on shareholders' equity. The maturity date of the facility is November 13, 2016.
CPLP has a separate facility with a maturity date of November 30, 2013 to cover a $7.5 million standby letter of credit issued to BC Hydro.
As at March 31, 2013, the Company and CPLP were in compliance with all covenants relating to their operating loans.
