BC Ferries and Sedar
British Columbia Ferry Services Inc. Financial Documents
Since BC Ferries is borrowing money from the bond market and banks, they have to file all of their financial documents on www.sedar.com
Save Our Ferries reviews each of these documents, which gives us insights into what is happening and what could happen in the future.
Company Profile
| Mailing Address: | Suite 500 – 1321 Blanshard Street Victoria, British Columbia V8W 0B7 |
Head Office Address: | Suite 500 – 1321 Blanshard Street Victoria, British Columbia V8W 0B7 |
| Contact Name: | Cynthia M. Lukaitis | Principal Regulator: | British Columbia |
| Business e-mail address: | n/a | Short Form Prospectus Issuer: | No |
| Telephone Number: | 250 978-1377 | Reporting Jurisdictions: | British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland |
| Fax Number: | 250 978-1953 | Stock Exchange: | N/A |
| Date of Formation: | Apr 2 2003 | Stock Symbol: | |
| Jurisdiction Where Formed: | British Columbia | Auditor: | KPMG LLP |
| Industry Classification: | transportation and environmental services | General Partner: | |
| CUSIP Number: | Transfer Agent: | Computershare Trust Company of Canada | |
| Financial Year-End: | Mar 31 | Size of Issuer (Assets): | Over $1,000,000,000 |
Consolidated Financial Statements of
BRITISH COLUMBIA FERRY SERVICES INC.
Years ended March 31, 2011 and 2010
Loans:
As at March 31,
Long-term debt: 2011 2010
5.74% Senior Secured Bonds, Series 04-1,
(effective interest rate 5.92%)
due May 2014 $ 250,000 $ 250,000
6.25% Senior Secured Bonds, Series 04-4, due October 2034
(effective interest rate 6.41%) (a)
$ 250,000 $ 250, 000
5.02% Senior Secured Bonds, Series 07-1, due March 2037
(effective interest rate 5.06%) (a)
$ 250,000 $ 250,000
5.58% Senior Secured Bonds, Series 08-1, due January 2038
(effective interest rate 5.62%) (a)
$ 200,000 $ 200,000
6.21% Senior Secured Bonds, Series 08-2, due December 2013
(effective interest rate 6.33%) (a)
$ 140,000 $ 140,000
12 Year Loan, maturing March 2020 (b)
Tranche A (effective interest rate 5.17%)
$ 67,000 $ 75,000
Tranche B (floating interest rate of 1.39% at March 31, 2011)
$ 22,500 $ 15,000
12 Year Loan, maturing June 2020 (b)
Tranche A (effective interest rate 5.18%)
$ 69,375 $ 76,875
Tranche B (floating interest rate of 1.38% at March 31, 2011)
$ 20,625 $ 13,125
2.95% Loan, maturing January 2021
(effective interest rate 3.08%) (c)
$ 90,000 $ 99,000
Total $ 1,360,000 $ 1,369,000
Less:
Deferred financing costs and unamortized bond discounts (10,861) (11,817)
Current portion (22,125) (9,000)
Total $ 1,327,014 $ 1,348,183
Principal repayments due in the next five years are:
Year ended
2012 $ 22,125
2013 $ 24,000
2014 $ 164,000
2015 $ 274,000
2016 $ 24,000
Thereafter $ 851,875
Total $ 1,360,000
(a) Bonds:
Bonds are issued under supplemental indentures either as obligation bonds or as pledged bonds. The bonds are secured by a registered first mortgage and charge over vessels, an unregistered first mortgage and charge over ferry terminal leases, and by a general security agreement on property and contracts. The bonds are redeemable in whole or in part at the option of the Company. The following table shows the semi-annual interest payment dates for the obligation bonds each year through to maturity.
Bonds Interest payment dates
Series 04-1 May 27 November 27
Series 04-4 April 13 October 13
Series 07-1 March 20 September 20
Series 08-1 January 11 July 11
Series 08-2 December 19 June 19
(b) 12 Year Loans:
Proceeds of $90.0 million were received in each of February 2008 and May 2008 for the partial financing of the purchase of the Coastal Inspiration and the Coastal Celebration to coincide with conditional acceptance of these vessels from the shipyard. Quarterly payments are due in March, June, September and December each year of the term of the loans.
These loan agreements defer the principal payments for the first three years to a second tranche on which interest only is paid in periods ranging from one to six months at the option of the Company, and the principal is paid at the end of the term. The interest rates on the second tranche are reset at floating rates of CAD LIBOR plus 30 bps, which will vary depending on the interest payment period.
(c) 2.95% Loan:
Proceeds of $108.0 million were received in January 2009 and applied toward the purchase of the Northern Expedition to coincide with conditional acceptance from the shipyard. Equal semiannual principal payments plus interest are due in January and July each year of the 12 year term of the loan.
(d) Credit facility:
The Company has a credit facility with a syndicate of Canadian banks, secured by pledged bonds. This revolving facility, in the amount of $155.0 million, matures May 12, 2013. Draws on this facility totaled $3.9 million as at March 31, 2011 (2010: $nil), and are shown as short-term debt. The interest rate on these borrowings was 3.0% at March 31, 2011. Interest expensed during the year ended March 31, 2011, was $nil (2010: $0.1 million). In addition, letters of credit outstanding against this facility at March 31, 2011 totalled $0.2 million (2010: $0.3 million).
(e) Debt service reserves:
The Company is required to maintain debt service reserves for the Series 04-1, 04-4, 07-1, 08-1 and 08-2 bonds equal to not less than six months forecasted debt service, to be increased under certain conditions. Further debt service reserves are required to be maintained for the 12 year loans and the 2.95% loans equal to not less than six months forecasted debt service, to be increased under certain conditions. As permitted under the terms of the 2.95% loan, during the year ended March 31, 2011, the Company withdrew $0.2 million from the debt service reserves representing six months interest on the principal paid to date on this loan.
As at March 31, 2011, debt service reserves of $37.0 million were held in short-term investments and have been classified as restricted short-term investments on the balance sheet (2010: $37.2 million).