DIRECTV 2006 Annual Report Download - page 97

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
Note 9: Debt
The following table sets forth our outstanding debt:
December 31,
Interest Rates at
December 31, 2006 2006 2005
(Dollars in Millions)
8.375% senior notes due in 2013 ....................... 8.375% $ 910.0 $ 910.0
6.375% senior notes due in 2015 ....................... 6.375% 1,000.0 1,000.0
Credit facility ..................................... 6.599% 1,492.5 1,500.0
Sky Brazil bank loan ................................ 7.763% 210.0 —
Other debt ....................................... — 2.8 5.0
Total debt .................................... 3,615.3 3,415.0
Less: current portion of long-term debt .................. 220.4 9.7
Long-term debt ................................ $3,394.9 $3,405.3
Notes Payable. Our $910.0 million in senior notes outstanding at December 31, 2006 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, 2006 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.
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., 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 $948.1 million at December 31, 2006
and $982.3 million at December 31, 2005. The fair value of our 6.375% senior notes was approximately
$961.9 million at December 31, 2006 and $983.8 million at December 31, 2005. The fair values were
calculated based on quoted market prices on those dates.
Credit Facility. At December 31, 2006, our senior secured credit facility consisted of a
$500.0 million six-year Term Loan A, a $992.5 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 0.75% and 1.50%, respectively. In addition, we pay a commitment fee of 0.175%
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).
Our notes payable and credit facility mature as follows: $220.1 million in 2007; $47.6 million in
2008; $97.6 million in 2009, $297.5 million in 2010, $97.6 million in 2011 and $2,852.1 million
thereafter. These amounts do not reflect potential prepayments that may be required under our senior
secured credit facility, which could result from a computation of excess cash flows that we may be
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