Notes to Consolidated Financial Statements [in thousands of Canadian dollars, except per share amounts] December 31, 2012 and 2011 Loans are made by the bank under a 364-day revolving credit facility, the term of which may be extended annually at the  bank’s option. If the bank elects not to extend the term, 50% of the outstanding principal amount shall be repaid in equal  quarterly instalments over the following two years, with the remaining 50% of the outstanding principal balance due two  years following the first quarter-end payment. The credit facility is fully and unconditionally guaranteed by CI Investments, a wholly owned subsidiary of CI, and may be  guaranteed by certain other subsidiaries of CI. The credit facility contains a number of fi nancial covenants that require CI  to meet certain financial ratios and financial condition tests. CI is within its financial covenants with respect to its credit  facility, which require that the funded debt to annualized earnings before interest, taxes, depreciation and amortization  ratio remain below 2.5:1 and that CI’s assets under management not fall below $40 billion, calculated based on a rolling  30-day average. There can be no assurance that future borrowings or equity financing will be available to CI or available  on acceptable terms.  On December 17, 2012, CI repaid $250 million of debentures [the “2012 Debentures”] and on December 16, 2011, CI repaid  $100 million of floating rate debentures [the “Floating Rate Debentures”]. On December 16, 2009, CI entered into interest rate swap agreements with a Canadian chartered bank to swap the semi- annual fi xed rate payments on the $250 million 2012 Debentures and the $200 million debentures due December 16, 2014  [the “2014 Debentures”] for floating rate payments. Based on the terms of the agreements, CI pays a rate equivalent to the  three-month Canadian bankers’ acceptance rate plus a spread of 142.4 basis points on the 2012 Debentures and a spread of  157.6 basis points on the 2014 Debentures. The rates are reset quarterly and paid semi-annually to match the fi xed payment  obligations of the Debentures. The swap agreements terminate on the maturity date of the respective Debentures unless  terminated by CI at an earlier date. The swap agreement on the 2012 Debentures terminated on the maturity date of  December 17, 2012. As at December 31, 2012, the fair value of the interest rate swap agreements was an unrealized gain of  $4,787 [December 31, 2011 - unrealized gain of $9,899] and is included in long-term debt in the consolidated statements of  financial position. Debentures For the year ended December 31, 2012, interest expense attributable to the 2012 Debentures, the 2014 Debentures and the  2016 Debentures was $6,553, $5,722 and $11,820, respectively [2011 - $6,799, $5,740 and $11,885, respectively]. Interest on  the Floating Rate Debentures was paid at the average three-month bankers’ acceptance rate plus 1.20%. Interest expense  attributable to the Floating Rate Debentures was $2,385 for the year ended December 31, 2011.  Issuance costs and the issuance discount are amortized over the term of the Debentures using the effective interest rate  method. The amortization expense related to the discount and transaction costs for CI’s issued Debentures for the year  ended December 31, 2012 were $1,013 [2011 - $998] which is included in other expenses. 65