DIRECTV 2003 Annual Report Download - page 90

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Note 8: Short-Term Borrowings and Long-Term Debt
Short-Term Borrowings and Current Portion of Long-Term Debt
Interest Rates at
December 31,
2003 2003 2002
(Dollars in Millions)
Short-term borrowings ....................................... 4.00%-13.50% $ 10.6 $ 21.5
Current portion of long-term debt .............................. 3.96%-12.10% 219.1 706.3
Total short-term borrowings and current portion of long-term
debt ................................................ $229.7 $727.8
Long-Term Debt
Interest Rates at
December 31,
2003 2003 2002
(Dollars in Millions)
Notespayable ............................................... 6.13%- 8.50% $2,750.0 $1,550.0
Credit facilities .............................................. 3.96%- 4.22% 1,575.0 1,506.3
Otherdebt .................................................. 3.29%-12.10% 25.4 40.0
Totaldebt................................................... 4,350.4 3,096.3
Less current portion ........................................... 219.1 706.3
Total long-term debt ...................................... $4,131.3 $2,390.0
Notes Payable
On February 28, 2003, DIRECTV U.S., which is referred to in this Note as DIRECTV, issued $1,400.0
million in senior notes due in 2013 in a private placement transaction. The ten-year senior notes bear interest at
8.375%. Principal on the senior notes is payable upon maturity, while interest is payable semi-annually beginning
September 15, 2003. The senior notes have been fully and unconditionally guaranteed, jointly and severally, by
each of DIRECTV’s domestic subsidiaries on a senior unsecured basis. These senior notes were exchanged for
registered notes with substantially identical terms in September 2003.
In February 2002, PanAmSat completed an $800.0 million private placement notes offering, which notes
were exchanged for registered notes with substantially identical terms in November 2002. These unsecured notes
bear interest at an annual rate of 8.5%. Interest is payable semi-annually and the unsecured notes mature in 2012.
PanAmSat issued five, seven, ten and thirty-year fixed rate notes totaling $750.0 million in January 1998.
The $200.0 million five-year notes were repaid in January 2003. The outstanding principal balances and interest
rates as of December 31, 2003 were $275.0 million at 6.125% due in 2005, $150.0 million at 6.375% due in 2008
and $125.0 million at 6.875% due in 2028. Principal is payable at maturity, while interest is payable semi-
annually. In connection with a secured bank facility entered into by PanAmSat in February 2002, described
below, these notes were ratably secured with the bank facility by substantially all of PanAmSat’s assets,
including its satellites.
The fair value of the Company’s notes payable was approximately $3,057 million and $1,491 million at
December 31, 2003 and 2002, respectively, based on quoted market prices on those dates.
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