AECON GROUP INC 19 CASH AND DEBT BALANCES Cash balances at December 31 2012 and December 31 2011 are as follows December 31 2012 Balances excluding joint ventures and build Joint Build fnance Consolidated millions fnance SPVs ventures SPVs total Cash and cash equivalents 1 67 67 Restricted cash 2 3 36 39 Bank indebtedness 3 10 10 December 31 2011 Balances excluding joint ventures and build Joint Build fnance Consolidated millions fnance SPVs ventures SPVs total Cash and cash equivalents 1 123 50 2 175 Restricted cash 2 6 40 46 Marketable securities 4 1 1 1 Cash and cash equivalents includes cash on deposit in joint venture bank accounts other than cash in Quiport JV as noted in 2 below which Aecon cannot access directly as well as cash held by Build Finance SPVs 2 Restricted cash includes cash that was deposited as collateral for letters of credit issued by Aecon as well as cash held in Quiport JV 3 Bank indebtedness includes borrowings on Aecons revolving credit facility 4 Marketable securities held by joint ventures consisted of highly liquid interest bearing securities Total longterm debt of 629 million at December 31 2012 compares to 654 million at December 31 2011 the composition of which is as follows December 31 December 31 millions 2012 2011 Current portion of longterm debt nonrecourse 119 567 Current portion of longterm debt recourse 619 657 Longterm debt nonrecourse 1560 1371 Longterm debt recourse 1460 1426 Convertible debentures 2532 2514 Total longterm debt 6290 6535 Debt held directly 4610 4596 Debt held by Build Finance SPVs 192 525 Debt of joint ventures 1 1488 1414 Total longterm debt 6290 6535 Longterm debt nonrecourse 1679 1938 Longterm debt recourse 2079 2083 Convertible debentures 2532 2514 Total longterm debt 6290 6535 1 All joint venture debt was held by Quiport JV Most of the 24 million net decrease in debt results from a decrease in Infrastructure Ontario Build Finance SPV project debt of 29 million following the completion of some of these projects Convertible debentures increased by 18 million during 2012 The increase resulted from a 61 million increase related to the accretion of notional interest on the debentures and a 43 million decrease in the fair value attributed to the embedded derivative component of the convertible debentures The embedded derivative represents the value attributed to the holders option to convert the debentures into common shares of Aecon Aecons liquidity position and capital resources are expected to be suffcient to fnance its operations and working capital requirements for the foreseeable future Aecons liquidity position is strengthened by its ability to draw on a committed revolving credit facility of 300 million of which 233 million was unutilized as of December 31 2012 As of December 31 2012 Aecon was in compliance with all debt covenants related to this credit facility On August 3 2012 Aecon amended its 2625 million revolving credit facility which was due to expire in May 2014 The committed facility was increased to 300 million and now expires on the earlier of August 3 2016 or four months prior to the maturity date of any convertible debentures if certain conditions are not satisfed Under the amended credit facility agreement the Company has the right subject to receiving additional lending commitments to increase the amount available under the credit facility by 150 million When combined with two letter of credit facilities provided by Export Development Canada EDC a 150 million domestic facility increased in June 2012 from 75 million and a US15 million international facility Aecons current total committed credit availability for working capital and letter of credit requirements is approximately 465 million