iHeartMedia 2003 Annual Report Download - page 77

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.
The Company has 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 the Company’s international operations
for certain working capital needs. At December 31, 2003, $50.1 million was outstanding. This credit facility expires on December 8, 2005.
At December 31, 2003, interest rates on the bank credit facilities varied from 1.55% to 1.57% on borrowings denominated in US dollars and
from 1.44% to 5.45% on borrowings in other currencies.
Senior Notes
On January 9, 2003, the Company 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 the Company’s bank credit facilities and to finance the redemption of AMFM
Operating, Inc.’s outstanding 8.125% senior subordinated notes due 2007 and 8.75% senior subordinated notes due 2007 as described below.
On March 17, 2003, the Company 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 the
Company’s bank credit facilities and to finance the redemption of all of the 4.75% LYONs due 2008.
On May 1, 2003, the Company completed a debt offering of $500.0 million 4.25% notes due May 15, 2009. Interest is payable on May 15 and
November 15. The aggregate net proceeds of $497.0 million were used to repay borrowings outstanding on the $1.5 billion three-year term
loan. In conjunction with the issuance, the Company entered into an interest rate swap agreement with a $500.0 million notional amount that
effectively converts fixed to floating interest at a rate based upon LIBOR.
On May 21, 2003, the Company completed a debt offering of $250.0 million 4.40% notes due May 15, 2011 and $250.0 million 4.90% notes
due May 15, 2015. Interest is payable on May 15 and November 15 on both series of notes. The aggregate net proceeds of approximately
$496.1 million were used to repay borrowings outstanding on the $1.5 billion three-year term loan. Subsequent to the issuance of the 4.40%
notes due 2011, the Company entered into an interest rate swap agreement with a $250.0 million notional amount that effectively floats interest
at a rate based upon LIBOR.
On October 6, 2003, the Company exercised a call provision on its 7.875% senior notes due June 15, 2005. The redemption price of
$842.6 million included the principal of $750.0 million, a premium of $74.4 million and accrued interest of $18.2 million. The redemption was
funded with borrowings on our bank credit facilities. Concurrent with the redemption, the Company terminated a related interest rate swap
agreement with a $750.0 million notional amount that effectively floated interest at a rate based upon LIBOR.
On November 5, 2003, the Company completed a debt offering of $250.0 million aggregate principal amount of 3.125% senior notes due
February 1, 2007. Interest is payable each February 1 and August 1 commencing August 1, 2004. The net proceeds of approximately
$249.1 million were used to repay borrowings outstanding on the Company’s credit facilities. In conjunction with the issuance of these notes,
the Company entered into an interest rate swap agreement with a $250.0 million notional amount that effectively floats interest at a rate based
upon LIBOR.
On December 2, 2003, the Company completed a debt offering of $300.0 million aggregate principal amount of 5.0% senior notes due
March 15, 2012. Interest is payable each March 15 and September 15 commencing March
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