DIRECTV 2009 Annual Report Download - page 109

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Senior Notes. The following table sets forth our outstanding senior notes balance and fair value as
of December 31:
Outstanding
Balance Fair value
2009 2008 2009 2008
(Dollars in millions)
8.375% senior notes due in 2013 .......................... $ — $ 910 $ — $ 904
4.750% senior notes due in 2014, net of unamortized discount of
$3 million as of December 31, 2009 ...................... 997 — 1,017 —
6.375% senior notes due in 2015 .......................... 1,000 1,000 1,038 911
7.625% senior notes due in 2016 .......................... 1,500 1,500 1,642 1,451
5.875% senior notes due in 2019, net of unamortized discount of
$7 million as of December 31, 2009 ...................... 993 — 1,016 —
Total senior notes ................................... $4,490 $3,410 $4,713 $3,266
We calculated the fair values based on quoted market prices of our senior notes, which is a
Level 1 input under the accounting guidance.
All of our senior notes were issued by DIRECTV U.S. and have been, or in the case of the
4.750% and 5.875% senior notes are in the process of being, registered under the Securities Act of
1933, as amended. All of our senior notes are unsecured and have been fully and unconditionally
guaranteed, jointly and severally, by substantially all of DIRECTV U.S.’ assets and additionally, our
4.750% and 5.875% senior notes are rated as investment grade. Principal on the senior notes is payable
upon maturity, while interest is payable semi-annually.
Credit Facility. At December 31, 2009, DIRECTV U.S.’ senior secured credit facility consisted of
a $375 million six-year Term Loan A, a $962 million eight-year Term Loan B, a $979 million five-year
Term Loan C and a $500 million undrawn six-year revolving credit facility. The Term Loan A, Term
Loan B and Term Loan C components of the senior secured credit facility currently bear interest at a
rate equal to the LIBOR plus 0.75%, 1.50% and 2.25%, respectively. The weighted average interest for
the senior secured credit facilities at December 31, 2009 was 3.143%. 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 substantially all of DIRECTV U.S.’ material
domestic subsidiaries.
Our notes payable and credit facility mature as follows: $1,510 million in 2010, $108 million in
2011, $20 million in 2012, $1,887 million in 2013, $1,000 million in 2014 and $3,500 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 required to
make at each year end under the credit agreement. We were not required to make a prepayment for
the years ended December 31, 2009, 2008, or 2007. The amount of interest accrued related to our
outstanding debt was $47 million at December 31, 2009 and $45 million at December 31, 2008.
Covenants and Restrictions. The senior secured credit facility requires DIRECTV U.S. to comply
with certain financial covenants. The senior notes and the senior secured credit facility also include
covenants that restrict DIRECTV U.S.’ ability to, among other things, (i) incur additional indebtedness,
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