iHeartMedia 2002 Annual Report Download - page 88

The second facility is a $1.5 billion multi-currency credit facility that matures August 30, 2005. At December 31, 2002, $1.5 million was
outstanding, and there were $142.3 million in letters of credit outstanding, which reduces availability. At December 31, 2002, $1.4 billion was
available for future borrowings.
The third facility was a $1.5 billion 364-day revolving credit facility that matured on August 28, 2002. The Company exercised its option upon
maturity to convert this facility into a $1.5 billion three-year term loan with a maturity of August 28, 2005. At December 31, 2002, the
outstanding balance was $1.5 billion. There were no outstanding letters of credit under this facility.
At December 31, 2002, interest rates on the bank credit facilities varied from 1.92% to 2.045% on borrowings denominated in US dollars and
from 1.285% to 7.496% on borrowings in other currencies.
Senior Notes
All fees and initial offering discounts are being amortized as interest expense over the life of the note. The aggregate face value and market
value of the senior notes was approximately $4.9 billion and $5.2 billion, respectively, at December 31, 2002. The aggregate face value and
market value of the senior notes was approximately $6.1 billion at December 31, 2001.
2.625% Convertible Notes: The notes are convertible into the Company’s common stock at any time following the date of original issuance,
unless previously redeemed, at a conversion price of $61.95 per share, subject to adjustment in certain events. The Company has reserved
8.4 million shares of common stock for the conversion of these notes. The notes are redeemable, in whole or in part, at the option of the
Company at any time on or after April 1, 2002 and until March 31, 2003 at 100.525%; and on April 1, 2003 at 100%, plus accrued interest.
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nterest Rate Swaps: The Company entered into interest rate swap agreements on the 7.25% senior notes due 2003 and the 7.875% senior notes
due 2005 whereby the Company pays interest at a floating rate and receives the fixed rate coupon. The fair value of these swaps was
$119.8 million and $106.6 million at December 31, 2002 and 2001, respectively.
Various Subsidiary Level Notes
The aggregate face value and market value of the various subsidiary level notes was approximately $1.3 billion and $1.4 billion at
December 31, 2002 and 2001, respectively.
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otes assumed in AMFM Merger: On October 6, 2000, the Company made payments of $231.4 million pursuant to mandatory offers to
repurchase due to a change of control on the following series of AMFM Operating Inc.’s debt: 8% senior notes due 2008, 8.125% senior
subordinated notes due 2007 and 8.75% senior subordinated notes due 2007, as well as the 12.625% exchange debentures due 2006. The
aggregate remaining balance of these series of AMFM Operating Inc. long-term bonds was $1.3 billion at December 31, 2002, which includes
a purchase accounting premium of $44.6 million.
On January 15, 2002, the Company redeemed all of the outstanding 12.625% exchange debentures due 2006, originally issued by SFX
Broadcasting. The debentures were redeemed for $150.8 million plus accrued interest. The redemption resulted in a gain of $3.9 million, net of
tax recorded in “other income (expense) –net”on the statement of operations.
Chancellor Media Corporation, SFX Broadcasting, and AMFM Operating Inc., or their successors are all indirect wholly-owned subsidiaries of
the Company.
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otes assumed in SFX Merger: During 2000, the Company launched a tender offer for any and all of its 9.125% senior subordinated notes due
2008 and consequently redeemed notes with a redemption value of approximately $602.9 million. Approximately $6.9 million of the notes
remain outstanding at December 31, 2002.
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