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Note 19 Debt due within one year

Note 19 Debt due within one year

 

FOR THE YEAR ENDED DECEMBER 31

NOTE   WEIGHTED AVERAGE
INTEREST RATE
  2016   2015  

Notes payable(1)

24   0.70 % 2,649   1,666  

Loans secured by trade receivables

24   1.68 % 931   931  

Long-term debt due within one year(2)

    4.71 % 835   1,778  

Unsecured committed term credit facility(3)

    1.49 % 479   526  

Net unamortized discount

        (1 )

Unamortized debt issuance costs

        (6 ) (6 )

Total long-term debt due within one year

20       1,307   2,298  

Total debt due within one year

        4,887   4,895  

 

 

 

Securitized trade receivables

Our securitized trade receivable programs are recorded as floating rate revolving loans secured by certain trade receivables and expire on July 1, 2018 and December 31, 2018.

The following table provides further details on our securitized trade receivables programs.

FOR THE YEAR ENDED DECEMBER 31

2016   2015  

Average interest rate throughout the year

1.51 % 1.59 %

Securitized trade receivables

1,904   2,056  

We continue to service these trade receivables. The buyers’ interest in the collection of these trade receivables ranks ahead of our interests, which means that we are exposed to certain risks of default on the amounts securitized.

We have provided various credit enhancements in the form of overcollateralization and subordination of our retained interests.

The buyers will reinvest the amounts collected by buying additional interests in our trade receivables until the securitized trade receivables agreements expire or are terminated. The buyers and their investors have no further claim on our other assets if customers do not pay the amounts owed.

 

Credit facilities

Bell Canada may issue notes under its Canadian and U.S. commercial paper programs up to the maximum aggregate principal amount of $2.5 billion in either Canadian or U.S. currency provided that at no time shall such maximum amount of notes exceed $3.5 billion in Canadian currency which equals the aggregate amount available under Bell Canada’s supporting revolving and expansion credit facilities as at December 31, 2016. The maximum amounts of the commercial paper programs and the committed expansion credit facility both reflect an increase of $500 million effective on December 20, 2016 as compared to December 31, 2015. The total amount of the committed revolving and expansion credit facilities may be drawn at any time.

The table below is a summary of our total bank credit facilities at December 31, 2016.

  TOTAL
AVAILABLE
  DRAWN   LETTERS OF CREDIT   COMMERCIAL
PAPER
OUTSTANDING
  NET AVAILABLE  

Committed credit facilities

                   

Unsecured revolving and expansion credit facilities(1)(2)

3,500       2,612   888  

Unsecured committed term credit facility(3)

479   479        

Other

134     130     4  

Total committed credit facilities

4,113   479   130   2,612   892  

Total non-committed credit facilities

1,472     741     731  

Total committed and non-committed credit facilities

5,585   479   871   2,612   1,623  

 

 

 

Restrictions

Some of our credit agreements:

  • require us to meet specific financial ratios
  • require us to offer to repay and cancel the credit agreement upon a change of control of BCE or Bell Canada

We are in compliance with all conditions and restrictions under such credit agreements.

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