Metro PCS 2009 Annual Report Download - page 100

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88
Investing Activities
Cash used in investing activities was $1.1 billion during the year ended December 31, 2009 compared to
approximately $1.3 billion during the year ended December 31, 2008. The decrease was due primarily to a $313.0
million decrease in purchases of FCC licenses as well as a $122.9 million decrease in purchases of property and
equipment, partially offset by an approximate $224.2 million increase in net purchases of short-term investments.
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 Northeast 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.
Financing Activities
Cash provided by financing activities was $449.0 million during the year ended December 31, 2009 compared to
$74.5 million during the year ended December 31, 2008. The increase was due primarily to $480.3 million in net
proceeds from the issuance of the New 9¼% Senior Notes in January 2009, partially offset by an approximate $99.7
million decrease in book overdraft.
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.
Senior Secured Credit Facility
Wireless, an indirect wholly-owned subsidiary of MetroPCS Communications, Inc., entered into the Senior
Secured Credit Facility on November 3, 2006, or senior secured credit facility. The senior secured credit facility
consists of a $1.6 billion term loan facility and a $100 million revolving credit facility. The term loan facility is
repayable in quarterly installments in annual aggregate amounts equal to 1% of the initial aggregate principal
amount of $1.6 billion. The term loan facility will mature in November 2013. The revolving credit facility will
mature in November 2011.
The facilities under the senior secured credit agreement are guaranteed by MetroPCS Communications, Inc.,
MetroPCS, Inc. and each of Wireless’ direct and indirect present and future wholly-owned domestic subsidiaries.
The facilities are not guaranteed by Royal Street, but Wireless has pledged the promissory note given by Royal
Street in connection with amounts borrowed by Royal Street from Wireless and we pledged the limited liability
company member interests we hold in Royal Street Communications. The senior secured credit facility contains
customary events of default, including cross defaults. The obligations are also secured by the capital stock of
Wireless as well as substantially all of the present and future assets of Wireless and each of its direct and indirect
present and future wholly-owned subsidiaries (except as prohibited by law and certain permitted exceptions).