Metro PCS 2009 Annual Report Download - page 132

MetroPCS Communications, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
December 31, 2009, 2008 and 2007
F-18
8. Long-Term Debt:
Long-term debt consisted of the following (in thousands):
2009 2008
9¼% Senior Notes ..................................................................................................................
.
$ 1,950,000 $ 1,400,000
Senior Secured Credit Facility................................................................................................
.
1,548,000 1,564,000
Capital Lease Obligations.......................................................................................................
.
181,194 91,343
Total long-term debt ...............................................................................................................
.
3,679,194 3,055,343
Add: unamortized (discount) premium on debt ......................................................................
.
(33,919) 19,649
Total debt................................................................................................................................
.
3,645,275 3,074,992
Less: current maturities ..........................................................................................................
.
(19,326) (17,009)
Total long-term debt ...............................................................................................................
.
$ 3,625,949 $ 3,057,983
Maturities of the principal amount of long-term debt, excluding capital lease obligations, at face value are as
follows (in thousands):
For the Year Ending December 31,
2010.................................................................................................................................................................. $ 16,000
2011.................................................................................................................................................................. 16,000
2012.................................................................................................................................................................. 16,000
2013.................................................................................................................................................................. 1,500,000
2014.................................................................................................................................................................. 1,950,000
Total ................................................................................................................................................................. $ 3,498,000
9¼% Senior Notes due 2014
On November 3, 2006, Wireless completed the sale of $1.0 billion of principal amount of 9¼% Senior Notes due
2014, (the “Initial Notes”). On June 6, 2007, Wireless completed the sale of an additional $400.0 million of 91/4%
Senior Notes due 2014 (the “Additional Notes”) under the existing indenture governing the Initial Notes at a price
equal to 105.875% of the principal amount of such Additional Notes. On January 20, 2009, Wireless completed the
sale of an additional $550.0 million of 9¼% Senior Notes due 2014 (the “New 9¼% Senior Notes” and, together
with the Initial Notes and Additional Notes, the “9¼% Senior Notes”) under a new indenture substantially similar to
the indenture governing the Initial Notes at a price equal to 89.50% of the principal amount of such New 9¼%
Senior Notes resulting in net proceeds of approximately $480.3 million.
The 91/4% Senior Notes are unsecured obligations and are guaranteed by MetroPCS, MetroPCS, Inc., and all of
Wireless’ direct and indirect wholly-owned subsidiaries, but are not guaranteed by Royal Street. Interest is payable
on the 9¼% Senior Notes on May 1 and November 1 of each year. Wireless may, at its option, redeem some or all
of the 9¼% Senior Notes at any time on or after November 1, 2010 for the redemption prices set forth in the
indentures governing the 9¼% Senior Notes. In addition, prior to November 1, 2009, Wireless may, at its option,
redeem up to 35% of the aggregate principal amount of the 9¼% Senior Notes with the net cash proceeds of certain
sales of equity securities. Wireless may also, at its option, prior to November 1, 2010, redeem some or all of the
notes at the “make whole” price set forth in the indentures governing the 9¼% Senior Notes.
Senior Secured Credit Facility
On November 3, 2006, Wireless entered into the Senior Secured Credit Facility, which consists of a $1.6 billion
term loan facility and a $100.0 million revolving credit facility. On November 3, 2006, Wireless borrowed
$1.6 billion under the Senior Secured 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 and the revolving credit facility will mature in November 2011.