iHeartMedia 2002 Annual Report Download - page 53

future borrowings to continue through the last business day of June 2005. The reductions in amounts available for future borrowings total
$109.4 million per quarter in 2003 and 2004, and $131.3 million in the first two quarters of 2005.
The second facility is a $1.5 billion, five-year multi-currency revolving credit facility. At December 31, 2002, the outstanding balance was
$1.5 million and, taking into account letters of credit of $142.3 million, $1.4 billion was available for future borrowings, with the entire balance
to be repaid on August 30, 2005.
The third facility was a $1.5 billion, 364-day revolving credit facility, which we had the option, upon its August 28, 2002 maturity, to
convert into a term loan. At maturity, we converted the facility into a three-year term loan with a maturity of August 28, 2005. At
December 31, 2002, the outstanding balance was $1.5 billion.
During the year ended December 31, 2002, we made principal payments totaling $3.0 billion and drew down $3.5 billion on these credit
facilities. As of February 28, 2003, the credit facilities aggregate outstanding balance was $1.7 billion and, taking into account outstanding
letters of credit, $2.6 billion was available for future borrowings.
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, 2002, approximately $54.3 million was available for future borrowings and
$95.7 million was outstanding. This credit facility expires on December 8, 2005.
Liquid Yield Option Notes
We assumed 4.75% Liquid Yield Option Notes (“LYONs”) due 2018 as a part of the merger with Jacor. Each LYON has a principal amount
at maturity of $1,000 and is convertible, at the option of the holder, at any time on or prior to maturity, into our common stock at a conversion
rate of 7.227 shares per LYON. The LYONs balance, after conversions to common stock, amortization of purchase accounting premium and
accretion of interest, at December 31, 2002 was $252.1 million, which includes an unamortized fair value purchase accounting premium of
$42.1 million.
We could purchase the LYONs, at the option of the holder, on February 9, 2003 for a purchase price of $494.52 per LYON, representing a
4.75% yield per annum to the holder on such date. At February 9, 2003, 9,683 LYONs were put to us, which we purchased for an aggregate
price of $4.8 million.
Long-Term Bonds
On January 15, 2002, we redeemed all of the outstanding 12.625% exchange debentures due 2006, originally issued by SFX Broadcasting
for $150.8 million plus accrued interest. During the year ended December 31, 2002, we also repurchased $245.5 million of convertible notes
prior to their maturity at December 1, 2002 and $70.4 million of various outstanding notes and convertible notes with maturities prior to
December 31, 2003. We utilized availability on the reducing revolving line of credit to finance these redemptions. These transactions resulted
in a $12.0 million gain recorded in other income (expense) –net. In addition, $1.0 billion of our 1.5% convertible notes matured on
December 1, 2002.
On February 10, 2003, we called all of the outstanding 8.125% senior subordinated notes due 2007, originally issued by Chancellor Media
Corporation of Los Angeles for $379.2 million plus accrued interest. On February 18, 2003, we called all of the outstanding 8.75% senior
subordinated notes due 2007, originally issued by Chancellor Radio Broadcasting Company for $193.4 million plus accrued interest.
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