US Cellular 2008 Annual Report Download - page 185

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 13 NOTES PAYABLE (Continued)
The maturity date of any borrowings under U.S. Cellular’s revolving credit facility would accelerate in the
event of a change in control.
The continued availability of the revolving credit facility requires U.S. Cellular to comply with certain
negative and affirmative covenants, maintain certain financial ratios and make representations regarding
certain matters at the time of each borrowing. The covenants also prescribe certain terms associated
with intercompany loans from TDS or TDS subsidiaries to U.S. Cellular or U.S. Cellular subsidiaries. U.S.
Cellular believes it was in compliance as of December 31, 2008 with all covenants and other
requirements set forth in its revolving credit facility. There were no intercompany loans at December 31,
2008 or 2007.
NOTE 14 LONG-TERM DEBT
Long-term debt at December 31, 2008 and 2007 was as follows:
December 31, 2008 2007
(Dollars in thousands)
6.7% senior notes maturing in 2033 .................. $ 544,000 $ 544,000
Unamortized discount ........................... (11,252) (11,707)
532,748 532,293
7.5% senior notes maturing in 2034 .................. 330,000 330,000
8.75% senior notes maturing in 2032 ................. 130,000 130,000
Obligation on capital leases ........................ 4,146 —
Other 9.0% due in 2009 ........................... 10,000 10,000
Total Long-term debt ............................. 1,006,894 1,002,293
Less: Current portion of long-term debt .............. 10,258 —
Total Long-term debt, excluding current portion .......... $ 996,636 $1,002,293
Unsecured Notes
The 6.7% senior notes are due December 15, 2033. Interest is paid semi-annually. U.S. Cellular may
redeem the notes, in whole or in part, at any time prior to maturity at a redemption price equal to the
greater of (a) 100% of the principal amount of such notes, plus accrued but unpaid interest, or (b) the
sum of the present values of the remaining scheduled payments of principal and interest thereon
discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 30 basis points.
The 7.5% senior notes are due June 15, 2034. Interest on the notes is payable quarterly. U.S. Cellular
may redeem the notes, in whole or in part, at any time on and after June 17, 2009, at a redemption price
equal to 100% of the principal amount redeemed plus accrued interest.
The 8.75% senior notes are due November 1, 2032. Interest is paid quarterly. U.S. Cellular may redeem
the notes, in whole or in part, at any time at a redemption price equal to 100% of the principal amount
redeemed plus accrued interest.
General
The covenants of the long-term debt obligations place certain restrictions on U.S. Cellular, including
restrictions on the ability of its subsidiaries, subject to certain exclusions, to incur additional liens, enter
into sale and leaseback transactions, and sell, consolidate or merge assets.
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