2020 Annual Report
1)
2020 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
Total from the last page
Line of credit up to the principal sum of $8,080 (USD 460,000) with Banco
Banamex, S.A., a full service banking institution, contracted on January
22, 2016 and maturing on January 22, 2021, with a Libor rate plus 1.8
basis points.
Loan available on demand in a single payment from Banco Banamex,
S.A., a full service banking institution, for a maximum amount of
$90,000, signed on March 9, 2016, with a monthly TIIE interest rate plus
an applicable margin of 0.75 percentage points, and a March 9, 2020
maturity date.
Loan available on demand in a single payment from Santander, S.A., a full
service banking institution, for a maximum amount of $190,000, with a
monthly TIIE interest rate plus an applicable margin of 0.40 percentage
points, and a December 19, 2020 maturity date.
Unsecured loan for $45,000 with Scotiabank Inverlat, S.A., a full service
banking institution, for the acquisition of assets signed on April 11, 2017.
Of which a first amount of $20,000 was withdrawn on 11 April 2017, plus
a second withdrawal for $5,000 on May 17, 2017; plus a third withdrawal
for $20,000 on July 11, 2017; effective for 60 months, and accruing
monthly interest at the TIIE rate plus 2 percentage points due in April
2022, which is paid in advance on 11 November 2020.
Total bank loans
Minus - Short-term portion of long-term bank loans
Bank loans with maturities greater than one year
2020
2019
$
6,358,954
6,415,110
459
2,170
5,625
63,333
MEGACABLE.
In relation to the loans indicated in the previous paragraph, the Group determined an effective interest rate in 2020 of 7.88%,
6.88%, 7.89% and for the last three 6.88%, respectively, on which the financial cost of said loan is recorded. In like manner,
the fair value for all loans is $6,808,329, which was determined by using the discount rate at fixed market value and TIIE plus
0.28% percentage points, and is within level 2 in the fair value hierarchies.
In relation to the loans indicated in the previous paragraph, the Group determined an effective interest rate in 2019 of 7.88%,
7.84%, 7.89% and for the last three 7.84%, respectively, on which the financial cost of said loan is recorded. In like manner,
the fair value for all loans is $6,404,319, which was determined by using the discount rate at fixed market value and TIIE plus
0.28% percentage points, and is within level 2 in the fair value hierarchies.
The current loan agreements establish different obligations to do and not do for Megacable Holdings and its subsidiaries,
including limitations to: (a) merge or consolidate with third parties; (b) sell, transfer or lease some of its assets, except in
the case of a cash transaction; (c) certain investments; (d) the amount of indebtedness; (e) certain dividend payments or
distributions of the capital stock of Megacable Holdings or its subsidiaries, or the purchase, redemption or other acquisition
of the capital stock of any of its subsidiaries; (f) enter into hedging contracts, unless they help mitigate certain risks or
acquire benefits; and (g) changes in accounting, as well as requiring Megacable Holdings and subsidiaries to comply with
certain financial ratios, including a consolidated leverage rate not greater than 3.00 and a consolidated interest coverage rate
greater than 3.50.
The exposure of the Group's loans to changes in interest rates and contractual dates is as follows:
2020
2019
21,531
Less than 6 months
From 6 to 12 months
More than 1 year up to 5 years
6,359,413
6,507,769
459
79,922
The book value and fair value of the long-term loans is as follows:
6,358,954
6,427,847
459
6,358,954
6,359,413
16,589
63,333
6,427,847
6,507,769
Book value
Fair value
2020
2019
2020
2019
On July 25, 2019, Mega Cable, S.A. de C.V. as an accredited subsidiary and Megacable Holdings, S.A.B. de C.V.,
Telefonía por Cable S.A. de C.V., Servicios Especiales Turandot, S.A.P.I de C.V., and Werther Administración Integral,
S.A.P.I. de C.V., as joint and several obligors, took out loans with Scotiabank Inverlat, S. A. for $2,000,000 and
$1,000,000, BBVA Bancomer, S.A. for $1,500,000 and $975,000, Banco Santander, S.A. for $500,000, and Banco
Nacional de México, S. A. for $500,000. These contracts mature on July 29, 2022 and July 29, 2024.
Loans
$
6,358,954
6,427,847
6,808,329
6,404,319
Fair values are based on discounted cash flows using the discount rate calculated by Management and are within level 2 in
the fair value hierarchies.
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