JPMorgan - KASE

The Canadian Notes contained certain covenants, which restricted the Corporation’s activities,
including limitation of indebtedness, dividends, restricted payments, sale of assets, liens and
related party transactions.
U.S. notes
On November 7, 1997, Hurricane issued $105 million of 11.75% senior unsecured notes due 2004
(the “U.S. Notes”). The U.S. Notes were to mature on November 1, 2004 and all outstanding
principal would have been repayable on maturity.
Interest on the U.S. Notes accrued at the rate of 11.75% per annum and was payable on May 1
and November 1 of each year, commencing May 1, 1998.
The U.S. Notes were general unsecured obligations of Hurricane and ranked equally in right of
payment with all existing and future unsecured debt of Hurricane, which is not subordinated by
its express terms. The U.S. Notes ranked senior in right of payment to any and all existing and
future unsecured subordinated debt of Hurricane.
The U.S. Notes contained certain covenants, which restricted the Corporation’s activities,
including limitation of indebtedness, dividends, restricted payments, sales of assets, liens and
related party transactions.
CCAA plan
Pursuant to the Companies’ Creditors Arrangement Act Plan (CCAA Plan) implemented on March
31, 2000, the terms of the Notes were amended as detailed in Note 2. The remaining principal
amounts were repaid by June 30, 2001.
12 Long Term Debt
Long term debt is represented by:
As at December 31
2001 2000
12%Notes.............................................................................. 189,976 —
Kazgermunai debt ....................................................................... 61,068 82,048
Term facility ............................................................................ 16,000 —
ShNOS bonds ........................................................................... 13,227 —
Issue costs .............................................................................. (2,504) —
277,767 82,048
12% notes
The Corporation declared a special dividend of C$4.00 per share to the shareholders of record as
of August 2, 2001 in the form of $208,610,000, 12% Notes (the “Notes”) issued on August 3, due
in 2006. These Notes are unsecured, bear interest at the rate of 12% per annum payable semiannually
on August 3 and February 3 and mature on August 4, 2006. The Notes are redeemable
at the Corporation’s option in whole or in part on the interest payment dates at 102% up to and
including February 3, 2003, at 101% up to and including February 3, 2004 and at 100%
thereafter. Each holder of the Notes has the right, upon the occurrence of a change in control, to
require the Corporation to repurchase all or any part (equal to $10,000 or an integral multiple
thereof) of the Notes at a price of 101% of the aggregate principal plus accrued and unpaid
interest.
Upon issuance, the Corporation paid fractional interests and withholding taxes of $31.83 million
in cash and retained a corresponding amount of the Notes. The Corporation repurchased $900
thousand of these Notes on the market and subsequently sold $15 million of the Notes, retaining
$18.65 million as of December 31, 2001.
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