Metro Inc. is one of Canada’s leading food retailers and distributors and operates a network of supermarkets, discount stores, and drugstores. Exhibit 10.9A includes the company’s statement of financial position includes Note 19 to the company’s 2020 financial statements, which provides details of Metro’s debt. Amounts are in millions of dollars.

Required 

a. Metro Inc. had a $600-million revolving credit facility in place at September 26, 2020. What is a
revolving credit facility? 

b. The revolving credit facility is described as unsecured. What does this mean? 

c. The company also had $2.6 billion in notes outstanding (Series C, F, G, B, D, H, and I notes) at September 26, 2020. When do these notes have to be repaid to the note holders? 

d. What is the annual interest expense that Metro Inc. incurs on the $2.6 billion in outstanding notes? 

e. Metro Inc. has a number of objectives in relation to its management of capital. One of these objectives is to have a percentage of non-current debt to total combined non-current debt and equity (non-current debt/total capital ratio) of less than 50%. Did the company meet this in 2020? Explain why Metro may have this objective.

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METRO Consolidated Statements of Financial Position As at September 26, 2020 and September 28, 2019 (Millions of dollars) Non-current assets Fixed assets (note 10) Investment properties (note 11) Right-of-use assets (note 12) Intangible assets (note 13) Goodwill (note 14) Deferred taxes (note 6) Defined benefit assets (note 23) Accounts receivable on subleases (note 12) Other assets (note 15) LIABILITIES AND EQUITY Current liabilities 2020 2,860.8 40.2 1,150.5 2,850.2 3,300.7 43.5 19.7 596.3 61.5 $13,423.9 2019 2,657.8 41.5 2,889.0 3,306.5 2.8 25.6 62.4 $11,073.9