iHeartMedia 2003 Annual Report Download - page 44

Domestic Credit Facilities
We currently have two separate domestic credit facilities. These provide cash for both working capital needs as well as to fund certain
acquisitions and refinancing of certain public debt securities.
The first credit facility is a reducing revolving credit facility, originally in the amount of $2.0 billion. At December 31, 2003, $610.5 million
was outstanding and $339.5 million was available for future borrowings. The amount available for future borrowings under this credit facility
began reducing on September 30, 2000, with quarterly reductions 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 2004, $131.3 million in the first quarter of 2005 and $381.3 million
in the second quarter of 2005.
The second facility is a $1.5 billion five-year multi-currency revolving credit facility. At December 31, 2003, the outstanding balance was
$50.0 million and, taking into account letters of credit of $130.6 million, $1.3 billion was available for future borrowings, with the entire
balance to be repaid on August 30, 2005.
We had a third facility, a $1.5 billion three-year term loan, which we paid down in full and terminated during 2003.
During the year ended December 31, 2003, we made principal payments totaling $5.0 billion and drew down $3.6 billion on these credit
facilities. As of February 29, 2004, the credit facilities’ aggregate outstanding balance was $569.0 million and, taking into account outstanding
letters of credit, $1.7 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. At December 31, 2003, $50.1 million was outstanding. This credit facility expires on December 8, 2005.
Liquid Yield Option Notes
On April 17, 2003, we redeemed all of our 4.75% Liquid Yield Option Notes (“LYONs”), pursuant to a call provision in the indenture
governing the LYONs, for $208.2 million. As a result of the redemption, we recognized a non-cash gain on the extinguishment of debt of
$41.3 million during the second quarter of 2003 which is recorded in the statement of operations in “Other income (expense) — net”.
Long-Term Bonds
On January 9, 2003, we completed a debt offering of $300.0 million 4.625% notes due January 15, 2008 and $500.0 million 5.75% notes
due January 15, 2013. Interest is payable on January 15 and July 15 on both series of notes. The aggregate net proceeds of approximately
$791.2 million were used to repay borrowings outstanding under our bank credit facilities and to finance the redemption of AMFM Operating,
Inc.’s outstanding 8.125% senior subordinated notes due in 2007 and 8.75% senior subordinated notes due in 2007 as described below.
On February 10, 2003, we redeemed all of AMFM Operating Inc.’s outstanding 8.125% senior subordinated notes due 2007 for
$379.2 million plus accrued interest. On February 18, 2003, we redeemed all of AMFM Operating Inc.’s outstanding 8.75% senior
subordinated notes due 2007 for $193.4 million plus accrued interest. The AMFM notes were redeemed pursuant to call provisions in the
indentures governing the notes. The redemptions resulted in a $1.7 million gain recorded in “Other income (expense) — net” on the statement
of operations.
On March 17, 2003, we completed a debt offering of $200.0 million 4.625% notes due January 15, 2008. Interest is payable on January 15
and July 15. The aggregate net proceeds of approximately $203.4 million were used to repay borrowings outstanding under our bank credit
facilities and to finance the redemption of all of the 4.75% LYONs due 2008.
44