DIRECTV 2005 Annual Report Download - page 99

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
Long-Term Debt
December 31,
Interest Rates at
December 31, 2005 2005 2004
(Dollars in Millions)
8.375% senior notes ................................ 8.375% $ 910.0 $1,400.0
6.375% senior notes ................................ 6.375% 1,000.0 —
Credit facility ..................................... 5.813% 1,500.0 1,011.8
Other debt ....................................... — 5.0 9.1
Total long-term debt ................................ 3,415.0 2,420.9
Less current portion ................................ 9.7 11.4
Long-term debt .................................... $3,405.3 $2,409.5
During the second quarter of 2005, we refinanced a significant portion of our outstanding debt, as
discussed in more detail below. As of December 31, 2005, our outstanding debt included the following
notes payable and credit facility:
Notes Payable. Our $910.0 million in senior notes outstanding at December 31, 2005 are due in
2013, bear interest at 8.375%, and are referred to as the 8.375% senior notes. Principal on the 8.375%
senior notes is payable upon maturity, while interest is payable semi-annually.
Our $1,000.0 million in senior notes outstanding at December 31, 2005 are due in 2015, bear
interest at 6.375%, and are referred to as the 6.375% senior notes. Principal on the 6.375% senior
notes is payable upon maturity, while interest is payable semi-annually beginning December 15, 2005.
The 8.375% senior notes and the 6.375% senior notes were issued by DIRECTV Holdings and its
wholly owned subsidiary, DIRECTV Financing Co., Inc., or DIRECTV Financing, and have been
registered under the Securities Act of 1933, as amended. The 8.375% senior notes and the 6.375%
senior notes are unsecured and have been fully and unconditionally guaranteed, jointly and severally, by
each of DIRECTV U.S.’ material domestic subsidiaries (other than DIRECTV Financing).
The fair value of our 8.375% senior notes was approximately $982.3 million at December 31, 2005
with a carrying value of $910.0 million and $1,569.8 million at December 31, 2004 with a carrying value
of $1,400.0 million. The fair value of our 6.375% senior notes was approximately $983.8 million at
December 31, 2005 with a carrying value of $1,000.0 million. The fair values were calculated based on
quoted market prices on those dates.
Credit Facility. At December 31, 2005, our senior secured credit facility consisted of a
$500.0 million six-year Term Loan A, a $1,000.0 million eight-year Term Loan B and a $500.0 million
undrawn six-year revolving credit facility. The Term Loan A and Term Loan B components of the
senior secured credit facility currently bear interest at a rate equal to the London InterBank Offered
Rate, or LIBOR, plus 1.25% and 1.50%, respectively. In addition, we pay a commitment fee of 0.225%
per year for the unused commitment under the revolving credit facility. The interest rate and
commitment fee may be increased or decreased under certain conditions. The senior secured credit
facility is secured by substantially all of DIRECTV U.S.’ assets and is fully and unconditionally
guaranteed, jointly and severally by all of DIRECTV U.S.’ material domestic subsidiaries (other than
DIRECTV Financing).
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