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## Corporate 

The composition of Capstone’s corporate long-term debt was as follows: 

<img src='content_image/159850.jpg'>

During 2013, long-term debt at corporate increased $39,476 from 2012, primarily due to the acquisition of ReD and the refinancing of the CPC-Cardinal credit facility. Upon acquiring ReD, Capstone assumed $34,500 of redeemable, extendible convertible unsecured subordinated debentures, which remain obligations of ReD. Since acquisition,$6,972 of the debentures were redeemed and $100 were converted to shares of the Corporation, both at the holders' option. Capstone provides credit support for the ReD Debentures. 

On November 12, 2013, the Corporation entered into a new corporate credit facility to repay the CPC-Cardinal credit facility and provide financial flexibility for general corporate purposes, including future acquisitions. The corporate credit facility was structured as a revolver with $32,500 of available credit. In January 2014, the available credit was increased by $17,500, bringing the total to $50,000 of credit of which $25,239 was drawn or committed as of December 31, 2013, of which $13,939 reflected committed letters of credit. 

## Covenant compliance 

During 2013, Capstone complied with all covenants. 

## Shareholders’ equity 

Shareholders’ equity comprised: 

<img src='content_image/159857.jpg'>

(1) Other equity items include the equity portion of convertible debentures, as well as the warrant and share option reserves. 

Capstone is authorized to issue an unlimited number of common shares as well as a limited number of preferred shares equal to 50% of the outstanding common shares. The increase in common shares outstanding was as follows: 

<img src='content_image/159860.jpg'>

(1) During 2013, Capstone issued share capital in exchange for ReD shares on acquisition, which are net of$224 of transaction costs (2012 - $89). 

