iHeartMedia 2005 Annual Report Download - page 45

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November 17, 2004, and December 16, 2004, $1.75 billion in securities remains available for issuance under this shelf
registration statement.
Debt Covenants
The significant covenants on our $1.75 billion five-year, multi-currency revolving credit facility relate to
leverage and interest coverage contained and defined in the credit agreement. The leverage ratio covenant requires us to
maintain a ratio of consolidated funded indebtedness to operating cash flow (as defined by the credit agreement) of less
than 5.25x. The interest coverage covenant requires us to maintain a minimum ratio of operating cash flow (as defined
by the credit agreement) to interest expense of 2.50x. In the event that we do not meet these covenants, we are
considered to be in default on the credit facility at which time the credit facility may become immediately due. At
December 31, 2005, our leverage and interest coverage ratios were 3.4x and 4.9x, respectively. This credit facility
contains a cross default provision that would be triggered if we were to default on any other indebtedness greater than
$200.0 million.
Our other indebtedness does not contain provisions that would make it a default if we were to default on our
credit facility.
The fees we pay on our $1.75 billion, five-year multi-currency revolving credit facility depend on our long-
term debt ratings. Based on our current ratings level of BBB-/Baa3, our fees on borrowings are a 45.0 basis point spread
to LIBOR and are 17.5 basis points on the total $1.75 billion facility. In the event our ratings improve, the fee on
borrowings and facility fee decline gradually to 20.0 basis points and 9.0 basis points, respectively, at ratings of A/A3 or
better. In the event that our ratings decline, the fee on borrowings and facility fee increase gradually to 120.0 basis
points and 30.0 basis points, respectively, at ratings of BB/Ba2 or lower.
We believe there are no other agreements that contain provisions that trigger an event of default upon a change
in long-term debt ratings that would have a material impact to our financial statements.
Additionally, our 8% senior notes due 2008, which were originally issued by AMFM Operating Inc., a wholly-
owned subsidiary of Clear Channel, contain certain restrictive covenants that limit the ability of AMFM Operating Inc.
to incur additional indebtedness, enter into certain transactions with affiliates, pay dividends, consolidate, or effect
certain asset sales.
At December 31, 2005, we were in compliance with all debt covenants. We expect to remain in compliance
throughout 2006.
Uses of Capital
Dividends
Our Board of Directors declared quarterly cash dividends as follows:
(In millions, except per share data)
Declaration
Date
Amount
per
Common
Share
Record Date Payment Date
Total
Payment
October 20, 2004 $ 0.125 December 31, 2004 January 15, 2005 $ 70.9
February 16, 2005 0.125 March 31, 2005 April 15, 2005 68.9
April 26, 2005 0.1875 June 30, 2005 July 15, 2005 101.7
July 27, 2005 0.1875 September 30, 2005 October 15, 2005 101.8
October 26, 2005 0.1875 December 31, 2005 January 15, 2006 100.9
Additionally, on February 14, 2006, our Board of Directors declared a quarterly cash dividend of $0.1875 per
share of our Common Stock to be paid on April 15, 2006, to shareholders of record on March 31, 2006.
Acquisitions
During 2005 we acquired radio stations for $12.5 million in cash. We also acquired Americas outdoor display
faces for $113.2 million in cash. Our international outdoor segment acquired display faces for $17.1 million and a
controlling majority interest in Clear Media Limited for $8.9 million. Clear Media is a Chinese outdoor advertising
company and as a result of consolidating its operations during the third quarter of 2005, the acquisition resulted in an