US Cellular 2011 Annual Report Download - page 67

UNITED STATES CELLULAR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 13 DEBT
Revolving Credit Facility
At December 31, 2011, U.S. Cellular had a revolving credit facility available for general corporate
purposes. Amounts under the revolving credit facility may be borrowed, repaid and reborrowed from time
to time from and after December 17, 2010 until maturity in December 2015. U.S. Cellular did not borrow
under its current or previous revolving credit facilities in 2011, 2010 or 2009 except for letters of credit.
U.S. Cellular’s interest cost on its revolving credit facility is subject to increase if its current credit ratings
from Standard & Poor’s Rating Services, Moody’s Investors Service or Fitch Ratings is lowered, and is
subject to decrease if the ratings are raised. The credit facility would not cease to be available nor would
the maturity date accelerate solely 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 facilities or
obtain access to other credit facilities in the future.
The maturity date of any borrowings under the U.S. Cellular revolving credit facility would accelerate in
the event of a change in control.
The following table summarizes the terms of the revolving credit facility as of December 31, 2011:
(Dollars in millions)
Maximum borrowing capacity ............................. $ 300.0
Letters of credit outstanding .............................. $ 0.2
Amount borrowed ..................................... $ —
Amount available for use ................................ $ 299.8
Fees on borrowing capacity, rate ........................... 0.41%
Borrowing rate: One-month London Interbank Offered Rate
(‘‘LIBOR’’) plus contractual spread (1) ..................... 0.50%
LIBOR ............................................ 0.30%
Contractual spread ................................... 0.20%
Range of commitment fees (2)
Low.............................................. 0.20%
High ............................................. 0.45%
Fees recognized
2011 ............................................. $ 1.2
2010 ............................................. $ 3.8
2009 ............................................. $ 5.9
Agreement date ....................................... December 2010
Maturity date ......................................... December 2015
(1) Borrowings under the revolving credit facility bear interest at LIBOR plus a contractual
spread based on U.S. Cellular’s credit rating or, at U.S. Cellular’s option, an alternate ‘‘Base
Rate’’ as defined in the revolving credit agreement. U.S. Cellular may select a borrowing
period of either one, two, three or six months (or other period of twelve months or less if
requested by U.S. Cellular and approved by the lenders). If U.S. Cellular provides notice of
intent to borrow less than three business days in advance of a borrowing, interest on
borrowing is at the Base Rate plus the contractual spread.
(2) The revolving credit facility has commitment fees based on the unsecured senior debt
ratings assigned to U.S. Cellular by certain ratings agencies.
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
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