Clearwire 2009 Annual Report Download - page 111

As of December 31, 2009,
$
2.71 billion in aggregate principal amount was outstanding under the Senior
S
ecure
d
Notes an
d
Ro
ll
over Notes. T
h
ewe
i
g
h
te
d
e
ff
ect
i
ve
i
nterest rate o
f
t
h
e Sen
i
or Secure
d
Notes an
d
Ro
ll
ove
r
N
otes was 13.02% at December 31, 2009.
T
he holders of the Senior Secured Notes and Rollover Notes have the right to require us to repurchase all of th
e
n
otes upon t
h
e occurrence o
f
ac
h
an
g
eo
f
contro
l
event or a sa
l
eo
f
certa
i
n assets at a pr
i
ce o
f
101% o
f
t
h
epr
i
nc
i
pa
l
amount or 100% o
f
t
h
epr
i
nc
i
pa
l
amount, respect
i
ve
ly
,p
l
us an
y
unpa
id
accrue
di
nterest to t
h
e repurc
h
ase
d
ate. Pr
i
o
r
t
o December 1, 2012, we ma
y
redeem up to 3
5
% of the a
gg
re
g
ate principal amount of the Senior Secured Notes at
a
r
e
d
empt
i
on pr
i
ce o
f
112% o
f
t
h
e aggregate pr
i
nc
i
pa
l
amount, p
l
us any unpa
id
accrue
di
nterest to t
h
e repurc
h
ase
d
ate. A
f
ter Decem
b
er 1, 2012, we ma
y
re
d
eem a
ll
or a part o
f
t
h
e Sen
i
or Secure
d
Notes
by
pa
yi
n
g
ama
k
e-w
h
o
l
e
p
remium as stated in the terms, plus an
y
unpaid accrued interest to the repurchase date
.
O
ur payment obligations under the Senior Secured Notes and Rollover Notes are guaranteed by certai
n
d
omest
i
csu
b
s
idi
ar
i
es on a sen
i
or
b
as
i
san
d
secure
db
y certa
i
n assets o
f
suc
h
su
b
s
idi
ar
i
es on a
fi
rst-pr
i
or
i
ty
li
en. T
he
S
en
i
or Secure
d
Notes an
d
Ro
ll
over Notes conta
i
n
li
m
i
tat
i
ons on our act
i
v
i
t
i
es, w
hi
c
h
amon
g
ot
h
er t
hi
n
g
s
i
nc
l
u
d
e
i
ncurring additional indebtedness and guarantee indebtedness; making distributions or payment of dividends or
c
ertain other restricted payments or investments; making certain payments on indebtedness; entering into agree
-
m
ents t
h
at restr
i
ct
di
str
ib
ut
i
ons
f
rom restr
i
cte
d
su
b
s
idi
ar
i
es; se
lli
n
g
or ot
h
erw
i
se
di
spos
i
n
g
o
f
assets; mer
g
er
,
c
onsolidation or sales of substantiall
y
all of our assets; enterin
g
transactions with affiliates; creatin
g
liens; issuin
g
c
ertain preferred stock or similar equity securities and making investments and acquiring assets
.
Future payments o
fi
nterest an
d
pr
i
nc
i
pa
l
on our Sen
i
or Secure
d
Notes an
d
Ro
ll
over Notes,
f
or t
h
e rema
i
n
i
ng
y
ears are as follows (in thousands)
:
Principal Interest
Years Endin
g
December 31
,
2010
................................................... $ —
$
3
33,644
2011
...................................................
—
3
32,
6
99
2012
...................................................
—
3
32,
6
99
2013
...................................................
—
3
32
,6
99
2
0
14...................................................
—
3
32
,6
99
201
5
...................................................
2,
772
,
494 332
,
699
$
2,772,494 $1,997,13
9
S
enior Term Loan Faci
l
ity — In con
j
unct
i
on w
i
t
h
t
h
e Transact
i
ons, we assume
df
rom O
ld
C
l
earw
i
re t
h
e Sen
i
or
T
erm Loan Facilit
y
, which had a balance as of the Closin
g
of $1.19 billion, net of discount. The Senior Term Loa
n
Facilit
y
was set to be due in 2011, but was repaid with the proceeds from the Senior Secured Notes and Rollover
Notes. As of December 31, 2008,
$
1.41 billion in aggregate principal amount was outstanding under the Senior
T
erm Loan Fac
ili
t
y
.
I
nterest Expense — Interest expense included in our consolidated statements of operations for the
y
ears ende
d
D
ecember 31, 2009, 2008 and 2007, consisted of the following (in thousands):
2
009
2
008
2
007
Y
ear Ended December 31
,
I
nterest coupo
n
.........................................
$
1
45
,
453
$
19
,
347
$
—
A
cc
r
et
i
o
n
o
f
debt d
i
scou
n
t
................................ 64
,
183 1
,
667 —
C
a
p
italized interest
......................................
(140,168) (4,469) —
$ 69,468 $16,545 $—
101
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)