iHeartMedia 2001 Annual Report Download - page 52

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International Credit Facility
We have a $150.0 million five-year revolving credit facility with a group of international banks.
This facility allows for borrowings in various foreign currencies, which are used to hedge net assets in
those currencies and provides funds to our international operations for certain working capital needs and
smaller acquisitions. At December 31, 2001, approximately $55.6 million was available for future
borrowings and $94.4 million was outstanding. This credit facility expires on December 8, 2005.
Long-Term Bonds
On October 26, 2001, we completed a debt offering of $750.0 million 6% Senior Notes due
November 1, 2006. Interest is payable on May 1 and November 1 of each year. The first interest
payment on the notes will be made on May 1, 2002. Net proceeds of approximately $744.1 million were
used to reduce the outstanding balance of our reducing revolving credit facility. Also included in long-
term bonds at December 31, 2001, is $106.6 million related to our interest rate swaps. Upon our
adoption of Statement of Financial Accounting Standards No. 133, Accounting for Derivative
Instruments and Hedging Activities, as amended, on January 1, 2001, we recorded the fair value of our
interest rate swaps on our balance sheet. The increase in long-term bonds was partially offset by a $34.4
million reduction related to foreign exchange gains and $9.0 million in amortization of merger premiums
and paydowns.
AMFM Long-Term Bonds
We assumed long-term bonds with a face value of $2.8 billion and fair value of $3.0 billion in
the AMFM merger. On September 29, 2000, we redeemed all of the outstanding 9% Senior
Subordinated Notes due 2008, originally issued by Chancellor Media Corporation or one of its
subsidiaries, for $829.0 million subject to change of control provisions in the bond indentures. In
October 2000, we redeemed, subject to change of control provisions in the bond indentures, all of the
outstanding 9.25% Senior Subordinated Notes due 2007, originally issued by Capstar Radio Broadcasting
Partners, Inc., the 12% Exchange Debentures due 2009, originally issued by Capstar Broadcasting
Partners, Inc. and the 12.75% Senior Discount Notes due 2009, originally issued by Capstar Broadcasting
Partners, Inc., for a total of $508.5 million.
On October 6, 2000, we made payments of $231.4 million pursuant to mandatory offers required
to repurchase due to a change of control on the following series of AMFM debt: 8% Senior Notes due
2008, 8.125% Senior Subordinated Notes due 2007 and 8.75% Senior Subordinated Notes due 2007,
originally issued by Chancellor Media Corporation or one of its subsidiaries, as well as the 12.625%
Exchange Debentures due 2006, originally issued by SFX Broadcasting. The aggregate remaining
balance of these series of AMFM long-term bonds was $1.4 billion at December 31, 2001.
On January 15, 2002, we redeemed all of the outstanding 12.625% Exchange Debentures due
2006, originally issued by SFX Broadcasting. At December 31, 2001 the face value of these notes was
$141.8 million and the unamortized fair value purchase accounting adjustment premium was $15.3
million. The debentures were redeemed for $150.8 million plus accrued interest. We utilized availability
on the reducing revolving line of credit to finance the redemption. The redemption resulted in a gain of
$3.9 million, net of tax.
Chancellor Media Corporation, Capstar Radio Broadcasting Partners, Capstar Broadcasting
Partners, Inc. and AMFM Operating Inc., or their successors are all indirect wholly-owned subsidiaries of
Clear Channel Communications. The debt redemptions were financed with borrowings under our
domestic credit facilities.