US Cellular 2014 Annual Report Download - page 72

United States Cellular Corporation
Notes to Consolidated Financial Statements (Continued)
NOTE 11 DEBT (Continued)
The following table summarizes the terms of the term loan facility as of February 25, 2015:
(Dollars in millions)
Maximum borrowing capacity ........................... $ 225.0
Amount borrowed ................................... $ —
Amount available for use .............................. $ 225.0
Hypothetical Borrowing rate: One-month London Interbank Offered
Rate (‘‘LIBOR’’) plus contractual spread(1) ................ 2.67%
Sample LIBOR Rate ................................ 0.17%
Contractual spread ................................. 2.50%
Range of commitment fees on amount available for use(2)
Low............................................ 0.13%
High ............................................ 0.30%
Agreement date ..................................... January 21, 2015
Maturity date(3) ..................................... January 21, 2022
(1) Borrowings under the term loan 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 term loan facility.
(2) The term loan credit facility has commitment fees based on the unsecured senior debt
ratings assigned to U.S. Cellular by certain ratings agencies.
(3) Principal amounts outstanding on the term loan facility will be due and payable quarterly in
equal installments beginning on the last day of the fifth fiscal quarter ending after the
agreement date, in an amount equal to 1.25% of the aggregate term loan facility
commitment. Any amounts owing under the term loan facility not previously repaid will be
due and payable on the maturity date.
The continued availability of the term loan 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, that are substantially the same as those in the U.S. Cellular
revolving credit facility described above.
In connection with U.S. Cellular’s term credit facility, TDS and U.S. Cellular entered into a subordination
agreement dated January 21, 2015 together with the administrative agent for the lenders under U.S.
Cellular’s term loan credit agreement, which is substantially the same as the subordination agreement in
the U.S. Cellular revolving credit facility described above. As of February 25, 2015, U.S. Cellular had no
outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the
term loan facility pursuant to this subordination agreement.
NOTE 12 COMMITMENTS AND CONTINGENCIES
Agreements
• On November 25, 2014, U.S. Cellular executed a Master Statement of Work and certain other
documents with Amdocs Software Systems Limited (‘‘Amdocs’’), effective October 1, 2014, that inter-
relate with but rearrange the structure under previous Amdocs Agreements. The agreement provides
that U.S. Cellular will now outsource to Amdocs certain support functions for its Billing and Operational
Support System (‘‘B/OSS’’). Such functions include application support, billing operations and some
infrastructure services. The agreement has a term through September 30, 2019, subject to five
one-year renewal periods at U.S. Cellular’s option. The total estimated amount to be paid to Amdocs
64