Metro PCS 2008 Annual Report Download - page 89

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80
Investing Activities
Cash used in investing activities was $1.3 billion during the year ended December 31, 2008 compared to $517.1
million during the year ended December 31, 2007. The increase was due primarily to $328.5 million in purchases of
FCC licenses, $25.2 million in cash used for business acquisitions, a $186.9 million increase in purchases of
property and equipment which was primarily related to construction in the Expansion Markets, and $267.2 million
in net proceeds from the sale of investments during the year ended December 31, 2007 that did not recur during the
year ended December 31, 2008.
Cash used in investing activities was $517.1 million during the year ended December 31, 2007 compared to $1.9
billion during the year ended December 31, 2006. The decrease was mainly due to $1.4 billion in purchases of FCC
licenses during the year ended December 31, 2006 that did not recur in 2007 as well as a $264.7 million increase in
net proceeds from the sale of investments, partially offset by a $217.0 million increase in purchases of property and
equipment.
Cash used in investing activities was $1.9 billion during the year ended December 31, 2006 compared to
$905.2 million during the year ended December 31, 2005. The increase was due primarily to an $887.7 million
increase in purchases of FCC licenses and a $284.3 million increase in purchases of property and equipment,
partially offset by a $355.5 million decrease in net purchases of investments.
Financing Activities
Cash provided by financing activities was $74.5 million for the year ended December 31, 2008 compared to $1.2
billion for year ended December 31, 2007. The decrease was due primarily to $818.3 million in net proceeds from
the Company’s initial public offering that was completed in April 2007 and $420.4 million in net proceeds from the
issuance of the additional notes in June 2007 that occurred during the year ended December 31, 2007 compared to
the year ended December 31, 2008.
Cash provided by financing activities was $1.2 billion for the year ended December 31, 2007 compared to $1.6
billion for the year ended December 31, 2006. The decrease was due primarily to a decrease in proceeds from
various financing activities during the year ended December 31, 2007 compared to the year ended December 31,
2006. Financing activities during the year ended December 31, 2007 included $818.3 million in net proceeds from
the company’s initial public offering that was completed in April 2007 and $421.0 million in net proceeds from the
sale of additional notes in June 2007.
Cash provided by financing activities was $1.6 billion for the year ended December 31, 2006 compared to
$712.2 million for the year ended December 31, 2005. The increase was due primarily to net proceeds from the
senior secured credit facility and the issuance of the 9¼% senior notes in the aggregate principal amount of $1.0
billion.
First and Second Lien Credit Agreements
On November 3, 2006, we paid the lenders under the first and second lien credit agreements $931.5 million plus
accrued interest of $8.6 million to extinguish the aggregate outstanding principal balance under the first and second
lien credit agreements. As a result, we recorded a loss on extinguishment of debt in the amount of approximately
$42.7 million.
On November 21, 2006, we terminated the interest rate cap agreement that was required by our first and second
lien credit agreements. We received approximately $4.3 million upon termination of the agreement. The proceeds
from the termination of the agreement approximated its carrying value.
Bridge Credit Facilities
In July 2006, MetroPCS II, Inc., or MetroPCS II, an indirect wholly-owned subsidiary of MetroPCS
Communications, Inc. (which has since merged into Wireless), entered into an Exchangeable Senior Secured Credit
Agreement and Guaranty Agreement, dated as of July 13, 2006, or the secured bridge credit facility. The aggregate
credit commitments available under the secured bridge credit facility were $1.25 billion and were fully funded.