US Cellular 2013 Annual Report Download - page 66

United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 10 DEBT (Continued)
U.S. Cellular’s interest cost on its revolving credit facility is subject to increase if its current credit ratings
from nationally recognized credit rating agencies 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, 2013:
(Dollars in millions)
Maximum borrowing capacity ............................ $ 300.0
Letters of credit outstanding(1) ........................... $ 17.6
Amount borrowed ..................................... $ —
Amount available for use ............................... $ 282.4
Borrowing rate: One-month London Interbank Offered Rate
(‘‘LIBOR’’) plus contractual spread(2) ..................... 1.67%
LIBOR ........................................... 0.17%
Contractual spread .................................. 1.50%
Range of commitment fees on amount available for use(3)
Low ............................................. 0.13%
High ............................................. 0.30%
Agreement date ...................................... December 2010
Maturity date ........................................ December 2017
Fees incurred attributable to the Revolving Credit Facility are as
follows:
Fees incurred as a percent of Maximum borrowing capacity for
2013 ........................................... 0.25%
Fees incurred, amount
2013 ........................................... $ 0.8
2012 ........................................... $ 1.1
2011 ........................................... $ 1.2
(1) In June 2013, U.S. Cellular provided $17.4 million in letters of credit to the FCC in
connection with U.S. Cellular’s winning bids in Auction 901. See Note 16—Supplemental
Cash Flow Disclosures for additional information on Auction 901.
(2) 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.
(3) The revolving credit facility has commitment fees based on the unsecured senior debt
ratings assigned to U.S. Cellular by certain ratings agencies.
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