content_image/192289.jpg content_image/192288.jpg content_image/192287.jpg
## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

On June 6, 2012, MPT Hydro LP completed a $100,621 debt offering to recapitalize theDryden, Hluey Lakes, Secheltand Wawatay facilities (the “hydro facilities”). The debt offering comprised $80,379 of senior secured bonds and $20,242 of subordinated secured bonds.The senior secured and subordinated secured bonds are fully amortizing over their respective terms. 

The bonds are secured by the hydro facilities alone and are non-recourse to the Corporation’sother businesses. As at December 31, 2013, the carrying value of the assets of the hydro facilities exceeded the total amount of bonds outstanding. 

Under the agreement, the hydro facilities must satisfy certain restrictive covenants as to minimum debt service coverage ratios. Additionally, the hydro facilities are required to set aside $6,194 as restricted cash to cover the debt service and maintenance reserves. 

## (C) Utilities – water 

<img src='content_image/192289.jpg'>

## (i) Bank loans 

<img src='content_image/192288.jpg'>

(1) The principal due on maturity is different from the balance as at December 31, 2012 in pounds sterling due to the fair value adjustment required on acquisition and deferred financing costs. 

(2) The variable rate bank loan is fixed by an interest rate swap exchanging six month LIBOR for a fixed rate of 5.025%. The fixing dates of the swap match those of the loan (see note 10(a)). The loan has a bullet repayment on maturity. 

The bank loans are fully repayable on maturity and incur non-utilization fees on the undrawn portion of the total available credit. 

## (ii) Term loans 

<img src='content_image/192287.jpg'>

(1) The principal due on maturity is different from the balance as at December 31, 2013 in pounds sterling due to the fair value adjustment made to the long-term debt on acquisition and deferred financing costs. 

(2) Coupons as specified in loan documentation. 

The interest rate on the £118,664 indexed-linked loan is adjusted in March and September, by reference to the Retail Price Index ("RPI"), with an eight-month lag. 

The interest rate on the £42,588 indexed-linked loan is adjusted in March and September, by reference to the RPI, with a two-month lag. 

