## 20. CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES (CONTINUED): 

(ii) Fifth series (continued): 

 On redemption or at maturity, the Company will repay the indebtedness of the convertible debentures by paying an amount equal to the principal amount of the outstanding convertible debentures, together with accrued and unpaid interest thereon. The Company may, at its option, elect to satisfy its obligation to repay the principal amount of the convertible debentures, which are to be redeemed or which have matured, by issuing shares to the holders of the convertible debentures. The number of shares to be issued will be determined by dividing $1,000 (one thousand) of principal amount of the convertible debentures by 95% of the weighted average trading price of the shares on the Toronto Stock Exchange for the 20 consecutive trading days ending on the fifth trading day preceding the date for redemption or the maturity date, as the case may be. 

The Company allocated $1.2 million of the Fifth series debentures into an equity component. During the year, the Company recorded $147 (September 29, 2012 - $115) in finance costs for the accretion of the Fifth series debentures. 

 The Company incurred issuance costs of $2.7 million, which are netted against the convertible debenture liability. 

 The fair value of the Fifth series debentures as at September 28, 2013 was approximately $62.3 million (September 29, 2012 - $63.6 million) based on market quotes. 

(iii) Third series: 

 On December 19, 2011, some of the net proceeds from the issuance of the Fifth series debentures were used to redeem the third series 5.9% convertible unsecured subordinated debentures (“Third series debentures”). The total amount redeemed was $51,679, as an amount of $26,257 was converted to 5,148,427 common shares by holders of the convertible debentures during the period from October 2, 2011 to December 19, 2011. In addition, $9 was repurchased during the first quarter of fiscal 2012 by the Company under the Normal Course Issuer Bid (“NCIB”) prior to the redemption date. 

