(1) The principal due on maturity is different from the balance as at December 31, 2013 in pounds sterling as due to the fair value adjustment made tothe long-term debt on acquisition. The rate of interest is fixed and payable every six months. (iv)  Irredeemable cumulative preferred shares Bristol Water is authorized to issue 14,000 irredeemable cumulative preferred shares at a value of £1 each, 12,500 have been issued and are fully paid for as at December 31, 2013. The preferred shares, which do not carry any voting rights, were issued in 1992 at £1 per share. The preferred shareholders of Bristol Water are entitled to receive dividends at 8.75% per annum on the par value of these shares on a cumulative basis; these dividends are payable half-yearly on 1 April and 1 October. On winding up, the preferred shareholders rank ahead of ordinary shareholders and are entitled to receive £1 per share and  any dividends accrued but unpaid in respect of their shares. In the event that dividends on the preferred shares are in arrears for six months or more,  holders of the preferred shares become entitled to vote at general meetings of members. In accordance with IAS 39 the shares are classified as long-term debt. (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. (iii) Debentures Dec 31, 2013 Dec 31, 2013 Dec 31, 2012 As at Interest Rate Maturity [£] [$] [$] Consolidated (principal £1,405$^{(1)}$) 4.00% Irredeemable 1,126 1,985 1,806 Perpetual (principal £37$^{(1)}$) 4.25% Irredeemable 37 65 59 Perpetual (principal £55$^{(1)}$) 4.00% Irredeemable 55 97 89 Perpetual (principal £73$^{(1)}$) 3.50% irredeemable 73 128 118 2,275 2,072 Dec 31, 2013 Dec 31, 2012 As at Fair Value Carrying Value Fair Value Carrying Value Corporate credit facility 11,300 11,300 — — Convertible debentures 70,394 68,807 44,416 40,631 81,694 80,107 44,416 40,631 Less: deferred financing costs — (2,430) — (2,248) Long-term debt 81,694 77,677 44,416 38,383 Less: current portion — — — — 81,694 77,677 44,416 38,383 2013 ANNUAL REPORT  89 Dec 31, 2013 Dec 31, 2013 Dec 31, 2012 As at Interest Rate Maturity [£] [$] [$] Preferred shares, cumulative (principal £12,500 (1) 0 ) 8.75% irredeemable 16,250 28,644 26,289 (v) Security for borrowings •  By way of first fixed charges over any of its freehold or leasehold property belonging to it now or acquired in the future (other than protected  land under the Water Industry Act 1991), its present and future goodwill, all rights and claims in relation to charged bank accounts, all book  debts all insurances, all rights, title and interest to all investments and all plant and machinery, and •  A floating charge over the whole of its undertaking. The majority of Bristol Water's financial liabilities are secured. In respect of Bristol Water plc: Prior to enforcement of the security by the lender, Bristol Water plc is entitled to exercise all its rights, and perform its obligations in relation to the charged assets in accordance with the provisions set out in the Security Trust and Intercreditor Deed. In respect of Bristol Water Core Holdings Ltd (the immediate parent of Bristol Water plc), as security for the obligations of Bristol Water plc: •  A fixed charge over its shares in Bristol Water plc together with a floating charge over the whole of its undertaking. (D) Corporate