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 $6,194 as restricted cash to cover the debt service and maintenance reserves. (C)  Utilities – water (i) Bank loans (ii) Term loans The interest rate on the £118,664 indexed-linked loan is adjusted in March and September, by reference to the Retail Price Index ("RPI"), with an  eight-month lag. The interest rate on the £42,588 indexed-linked loan is adjusted in March and September, by reference to the RPI, with a two-month lag. The bank loans are fully repayable on maturity and incur non-utilization fees on the undrawn portion of the total available credit. (1) The principal due on maturity is different from the balance as at December 31, 2012 in pounds sterling due to the fair value adjustment required  on acquisition and deferred financing costs. (2) The variable rate bank loan is fixed by an interest rate swap exchanging six month LIBOR for a fixed rate of 5.025%. The fixing dates of the swap match those of the loan (see note 10(a)). The loan has a bullet repayment on maturity. (1) The principal due on maturity is different from the balance as at December 31, 2013 in pounds sterling due to the fair value adjustment made to the long-term debt on acquisition and deferred financing costs. (2) Coupons as specified in loan documentation. 88 CAPSTONE INFRASTRUCTURE CORPORATION Dec 31, 2013 Dec 31, 2013 Dec 31, 2012 As at Interest Rate Maturity [£] [$] [$] Secured, principal index-linked to RPI, fixed interest at  3.635%$^{(2)}$ on the indexed principal (principal £118,664$^{(1)}$) 6.79% Sep 30, 2032 149,158 262,921 237,462 Secured, fixed interest at 6.01% (2) % (principal £57,500$^{(1)}$) 6.01% Sep 30, 2033 63,212 111,424 102,730 Secured, principal index-linked to RPI, fixed interest at  2.701% on the indexed principal (principal £42,588$^{(1)}$) 5.77% Mar 24, 2041 47,337 83,441 74,665 457,786 414,857 Dec 31, 2013 Dec 31, 2013 Dec 31, 2012 As at Interest Rate Maturity [£] [$] [$] Secured, variable interest at one month Libor plus a margin  (principal £10,000$^{(1)}$) 1.23% Dec 17, 2017 9,771 17,224 15,715 Secured, variable interest at six month Libor plus a margin  (principal £10,000$^{(1 and 2)}$) 5.73% Dec 17, 2017 9,771 17,224 15,715 HSBC plc (principal £26,000) 1.93% Aug 17, 2017 26,000 45,830 — The Royal Bank of Scotland plc (principal £4,000) 1.58% Aug 17, 2015 4,000 7,051 — 87,329 31,430 Dec 31, 2013 Dec 31, 2012 As at Fair Value Carrying Value Fair Value Carrying Value Bank loans 87,056 87,329 31,540 31,430 Term loans 505,322 457,786 457,563 414,857 Debentures 2,424 2,275 2,346 2,072 Irredeemable cumulative preferred shares 32,830 28,644 28,211 26,289 627,632 576,034 519,660 474,648 Less: deferred financing costs — (2,047) — (1,111) Long-term debt 627,632 573,987 519,660 473,537 Less: current portion — — — — 627,632 573,987 519,660 473,537