US Cellular 2011 Annual Report Download - page 25

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as a result of a downgrade in U.S. Cellular’s credit rating. However, a downgrade in U.S. Cellular’s credit
rating could adversely affect its ability to renew the credit facility or obtain access to other credit facilities
in the future.
As of December 31, 2011, U.S. Cellular’s credit ratings from the nationally recognized credit rating
agencies remained at investment grade.
The following table summarizes the terms of U.S. Cellular’s revolving credit facility as of December 31,
2011:
(Dollars in millions)
Maximum borrowing capacity ............................. $ 300.0
Letter of credit outstanding ............................... $ 0.2
Amount borrowed ..................................... $ —
Amount available for use ................................ $ 299.8
Agreement date ....................................... December 2010
Maturity date ......................................... December 2015
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.
There were no intercompany loans at December 31, 2011 or 2010. U.S. Cellular believes it was in
compliance as of December 31, 2011 with all of the covenants and requirements set forth in its revolving
credit facility.
Long-Term Financing
U.S. Cellular had the following public debt outstanding as of December 31, 2011:
Aggregate
Issuance date Maturity date Call date(1) Principal Amount
(Dollars in
thousands)
Unsecured Senior
Notes
6.7% ......... December 2003 and June 2004 December 2033 December 2003 $ 544,000
6.95% ........ May 2011 May 2060 May 2016 342,000
(1) U.S. Cellular may redeem the 6.7% Senior 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 and 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. U.S. Cellular may redeem the 6.95% Senior Notes,
in whole or in part at any time after the call date, at a redemption price equal to 100% of the
principal amount redeemed plus accrued and unpaid interest.
U.S. Cellular’s long-term debt indenture does not contain any provisions resulting in acceleration of the
maturities of outstanding debt in the event of a change in U.S. Cellular’s credit rating. However, a
downgrade in U.S. Cellular’s credit rating could adversely affect its ability to obtain long-term debt
financing in the future. U.S. Cellular believes it was in compliance as of December 31, 2011 with all
covenants and other requirements set forth in its long-term debt indenture. U.S. Cellular has not failed to
make nor does it expect to fail to make any scheduled payment of principal or interest under such
indenture.
The long-term debt principal payments due for the next five years represent less than 1% of the total
long-term debt obligation at December 31, 2011. Refer to Market Risk—Long-Term Debt for additional
information regarding required principal payments and the weighted average interest rates related to U.S.
Cellular’s long-term debt.
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