USM » Topics » Interest expense

This excerpt taken from the USM 10-Q filed Nov 5, 2008.

Interest expense

 

The decrease in interest expense in 2008 was primarily due to the settlement of U.S. Cellular’s variable prepaid forward contracts in May 2007.

 

This excerpt taken from the USM 10-Q filed Aug 7, 2008.

Interest Expense

 

The decrease in interest expense in 2008 was primarily due to U.S. Cellular settling its variable prepaid forward contracts in May 2007.

 

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This excerpt taken from the USM 10-Q filed May 7, 2008.

Interest Expense

 

The decrease in interest expense in 2008 was primarily due to U.S. Cellular settling its variable prepaid forward contracts and paying down its outstanding revolving credit facility balance in May 2007.

 

This excerpt taken from the USM DEF 14A filed Apr 15, 2008.

Interest expense

        Interest expense is summarized by related debt instrument in the following table:

Year Ended December 31,

  2007
  2006
  2005
(Dollars in millions)
   
   
   
6.7% senior notes   $ 37,084   $ 37,080   $ 37,072
7.5% senior notes     25,113     25,113     25,016
8.75% senior notes     11,380     11,383     11,422
Forward contracts(1)     3,514     9,067     6,156
Revolving credit facility     4,967     8,337     3,109
Other     2,621     2,694     2,092
   
 
 
  Total Interest Expense   $ 84,679   $ 93,674   $ 84,867
   
 
 

      (1)
      In May 2002, U.S. Cellular entered into the forward contracts relating to its investment in Vodafone ADRs. Taken together, the forward contracts allowed U.S. Cellular to borrow an aggregate of $159.9 million against the Vodafone ADRs. The forward contracts bore

16


United States Cellular Corporation and Subsidiaries
Management's Discussion and Analysis of Financial Condition and Results of Operations

        interest, payable quarterly, at the London InterBank Offered Rate ("LIBOR") plus 50 basis points.

        The decrease in interest expense in 2007 is primarily due to U.S. Cellular settling its variable prepaid forward contracts and paying down its outstanding revolving credit facility balance in May 2007.

        The increase in interest expense in 2006 is due primarily to an increase in average revolving credit facility balances and higher interest rates for variable rate debt including the revolving credit facility and the Vodafone variable prepaid forward contracts.

This excerpt taken from the USM ARS filed Apr 15, 2008.

Interest expense

        Interest expense is summarized by related debt instrument in the following table:

Year Ended December 31,

  2007
  2006
  2005
(Dollars in millions)
   
   
   
6.7% senior notes   $ 37,084   $ 37,080   $ 37,072
7.5% senior notes     25,113     25,113     25,016
8.75% senior notes     11,380     11,383     11,422
Forward contracts(1)     3,514     9,067     6,156
Revolving credit facility     4,967     8,337     3,109
Other     2,621     2,694     2,092
   
 
 
  Total Interest Expense   $ 84,679   $ 93,674   $ 84,867
   
 
 

      (1)
      In May 2002, U.S. Cellular entered into the forward contracts relating to its investment in Vodafone ADRs. Taken together, the forward contracts allowed U.S. Cellular to borrow an aggregate of $159.9 million against the Vodafone ADRs. The forward contracts bore

16


United States Cellular Corporation and Subsidiaries
Management's Discussion and Analysis of Financial Condition and Results of Operations

        interest, payable quarterly, at the London InterBank Offered Rate ("LIBOR") plus 50 basis points.

        The decrease in interest expense in 2007 is primarily due to U.S. Cellular settling its variable prepaid forward contracts and paying down its outstanding revolving credit facility balance in May 2007.

        The increase in interest expense in 2006 is due primarily to an increase in average revolving credit facility balances and higher interest rates for variable rate debt including the revolving credit facility and the Vodafone variable prepaid forward contracts.

These excerpts taken from the USM 10-K filed Feb 29, 2008.

Interest expense

        Interest expense is summarized by related debt instrument in the following table:

Year Ended December 31,

  2007
  2006
  2005
(Dollars in millions)
   
   
   
6.7% senior notes   $ 37,084   $ 37,080   $ 37,072
7.5% senior notes     25,113     25,113     25,016
8.75% senior notes     11,380     11,383     11,422
Forward contracts(1)     3,514     9,067     6,156
Revolving credit facility     4,967     8,337     3,109
Other     2,621     2,694     2,092
   
 
 
  Total Interest Expense   $ 84,679   $ 93,674   $ 84,867
   
 
 

      (1)
      In May 2002, U.S. Cellular entered into the forward contracts relating to its investment in Vodafone ADRs. Taken together, the forward contracts allowed U.S. Cellular to borrow an aggregate of $159.9 million against the Vodafone ADRs. The forward contracts bore

16


United States Cellular Corporation and Subsidiaries
Management's Discussion and Analysis of Financial Condition and Results of Operations

        interest, payable quarterly, at the London InterBank Offered Rate ("LIBOR") plus 50 basis points.

        The decrease in interest expense in 2007 is primarily due to U.S. Cellular settling its variable prepaid forward contracts and paying down its outstanding revolving credit facility balance in May 2007.

        The increase in interest expense in 2006 is due primarily to an increase in average revolving credit facility balances and higher interest rates for variable rate debt including the revolving credit facility and the Vodafone variable prepaid forward contracts.

Interest expense



        Interest expense is summarized by related debt instrument in the following table:






























































































































Year Ended December 31,

 2007
 2006
 2005
(Dollars in millions)
  
  
  
6.7% senior notes $37,084 $37,080 $37,072
7.5% senior notes  25,113  25,113  25,016
8.75% senior notes  11,380  11,383  11,422
Forward contracts(1)  3,514  9,067  6,156
Revolving credit facility  4,967  8,337  3,109
Other  2,621  2,694  2,092
  
 
 
 Total Interest Expense $84,679 $93,674 $84,867
  
 
 








      (1)
      In
      May 2002, U.S. Cellular entered into the forward contracts relating to its investment in Vodafone ADRs. Taken together, the forward contracts allowed U.S. Cellular to borrow an
      aggregate of $159.9 million against the Vodafone ADRs. The forward contracts bore



16








United States Cellular Corporation and Subsidiaries

Management's Discussion and Analysis of Financial Condition and Results of Operations







        interest,
        payable quarterly, at the London InterBank Offered Rate ("LIBOR") plus 50 basis points.







        The
decrease in interest expense in 2007 is primarily due to U.S. Cellular settling its variable prepaid forward contracts and paying down its outstanding revolving
credit facility balance in May 2007.



        The
increase in interest expense in 2006 is due primarily to an increase in average revolving credit facility balances and higher interest rates for variable rate debt including the
revolving credit facility and the Vodafone variable prepaid forward contracts.



This excerpt taken from the USM 10-Q filed Nov 6, 2007.
Interest expense decreased $4.4 million, or 18%, to $19.6 million in the third quarter of 2007 from $24.0 million in the third quarter of 2006 primarily due to a decrease in average revolving credit facility balances and settlement of the Vodafone prepaid forward contracts in May 2007.

 

This excerpt taken from the USM 10-Q filed Aug 7, 2007.
Interest expense decreased $1.7 million, or 7%, to $21.3 million in the second quarter of 2007 from $23.0 million in the second quarter of 2006 primarily due to a decrease in average revolving credit facility balances.

This excerpt taken from the USM 10-Q filed May 15, 2007.
Interest expense increased $0.5 million, or 2%, to $23.7 million in 2007 from $23.2 million in 2006.  Interest expense in 2007 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($2.4 million); and its revolving credit facility with a series of banks ($2.4 million). Interest expense in 2006 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($2.0 million); and its revolving credit facility with a series of banks ($2.2 million).

For information regarding U.S. Cellular’s Revolving Credit Facility and Long-Term Debt, see “Liquidity and Capital Resources – Revolving Credit Facility” and “Long-Term Debt” below.

This excerpt taken from the USM 10-Q filed Feb 23, 2007.
Interest expense increased $2.9 million, or 14%, to $24.0 million in the third quarter of 2006 from $21.1 million in the third quarter of 2005 primarily due to an increase in average revolving credit facility balances and higher interest rates for variable rate debt including the revolving credit facility and the Vodafone forward contracts.

This excerpt taken from the USM 10-Q filed Feb 23, 2007.
Interest (expense) increased $1.6 million, or 7%, to $23.0 million in the second quarter of 2006 from $21.4 million in the second quarter of 2005 primarily due to an increase in average revolving credit facility balances and higher interest rates for variable rate date including the revolving credit facility and the Vodafone forward contracts.

51




This excerpt taken from the USM 10-Q filed Feb 23, 2007.
Interest expense increased $2.5 million, or 12%, to $23.2 million in 2006 from $20.7 million in 2005.  Interest expense in 2006 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($2.0 million); and its revolving credit facility with a series of banks ($2.2 million).  Interest expense in 2005 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($1.2 million); and its revolving credit facility with a series of banks ($0.6 million).The increase in interest expense in 2006 is primarily due to the increase in average revolving credit facility balances and increases in interest rates for its variable-rate debt, the Vodafone forward contracts and revolving credit facility borrowings.

U.S. Cellular’s $544 million principal amount of 6.7% senior notes is unsecured and becomes due in December 2033.  Interest on such notes is payable semi-annually on June 15 and December 15 of each year.   The $330 million principal amount of 7.5% senior notes is unsecured and becomes due in June 2034.  Interest on such notes is payable quarterly on March 15, June 15, September 15 and December 15 of each year. The U.S. Cellular’s $130 million principal amount of 8.75% senior notes is unsecured and becomes due in November 2032.  Interest on such notes is payable quarterly on February 1, May 1, August 1 and November 1 of each year.

For information regarding U.S. Cellular’s Revolving Credit Facility, see “Liquidity and Capital Resources – Revolving Credit Facility” below.

This excerpt taken from the USM 10-Q filed Oct 10, 2006.
Interest (expense) increased $1.6 million, or 7%, to $23.0 million in the second quarter of 2006 from $21.4 million in the second quarter of 2005 primarily due to an increase in average revolving credit facility balances and higher interest rates for variable rate date including the revolving credit facility and the Vodafone forward contracts.

39




This excerpt taken from the USM 10-Q filed Aug 25, 2006.
Interest expense increased $2.5 million, or 12%, to $23.2 million in 2006 from $20.7 million in 2005.  Interest expense in 2006 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($2.0 million); and its revolving credit facility with a series of banks ($2.2 million).  Interest expense in 2005 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($1.2 million); and its revolving credit facility with a series of banks ($0.6 million).The increase in interest expense in 2006 is primarily due to the increase in average revolving credit facility balances and increases in interest rates for its variable-rate debt, the Vodafone forward contracts and revolving credit facility borrowings.

U.S. Cellular’s $544 million principal amount of 6.7% senior notes is unsecured and becomes due in December 2033.  Interest on such notes is payable semi-annually on June 15 and December 15 of each year.   The $330 million principal amount of 7.5% senior notes is unsecured and becomes due in June 2034.  Interest on such notes is payable quarterly on March 15, June 15, September 15 and December 15 of each year. The U.S. Cellular’s $130 million principal amount of 8.75% senior notes is unsecured and becomes due in November 2032.  Interest on such notes is payable quarterly on February 1, May 1, August 1 and November 1 of each year.

For information regarding U.S. Cellular’s Revolving Credit Facility, see “Liquidity and Capital Resources – Revolving Credit Facility” below.

This excerpt taken from the USM 10-Q filed Apr 26, 2006.
Interest (expense) increased $0.4 million, or 2%, to $20.7 million in 2005 from $20.3 million in 2004.  Interest expense in 2005 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($1.2 million); and its revolving credit facility with a series of banks ($0.6 million).

 

Interest expense in 2004 is primarily related to U.S. Cellular’s 6.7% senior notes ($7.5 million); its 7.25% senior notes ($4.6 million); its 8.75% senior notes ($2.9 million); its Liquid Yield Option Notes ($2.5 million); its Intercompany Note with TDS (the “Intercompany Note”) ($0.9 million); its revolving credit facilities with a series of banks ($0.8 million); and its Vodafone forward contracts ($0.7 million). The Liquid Yield Option Notes, the 7.25% senior notes and the Intercompany Note were paid off in 2004.

 

The Liquid Yield Option Notes, which were 6% zero coupon convertible debentures, were redeemed as of July 26, 2004. U.S. Cellular’s $250 million principal amount of 7.25% senior notes were redeemed on August 16, 2004.

 

U.S. Cellular’s $544 million principal amount of 6.7% senior notes are unsecured and are due in December 2033.  Interest on such notes is payable semi-annually on June 15 and December 15 of each year.  U.S. Cellular originally issued $444 million of the 6.7% notes in December 2003 in order to reduce the use of its revolving credit facility and the related interest rate risk.  An additional $100 million of such notes was issued in June 2004.  The proceeds of such additional issuance, together with the proceeds of the 7.5% notes discussed below, were used to redeem the Liquid Yield Option Notes on July 26, 2004.  The balance of the net proceeds, together with borrowings under the revolving credit agreement, was used to redeem all of U.S. Cellular’s 7.25% senior notes on August 16, 2004.

 

In June 2004, U.S. Cellular issued $330 million in aggregate principal amount of 7.5% senior notes due 2034.  These notes are unsecured and interest on such notes is payable quarterly on March 15, June 15, September 15 and December 15 of each year.

 

U.S. Cellular’s $130 million principal amount of 8.75% senior notes are unsecured and are due in November 2032.  Interest on such notes is payable quarterly on February 1, May 1, August 1 and November 1 of each year.

 

For information regarding U.S. Cellular’s Revolving Credit Facilities, see “Liquidity and Capital Resources – Revolving Credit Facilities.”  For information regarding the Intercompany Note from TDS, see “Certain Relationships and Related Transactions.”

 

This excerpt taken from the USM 10-Q filed Apr 26, 2006.
Interest (expense) increased $0.4 million, or 2%, to $21.4 million in 2005 from $21.0 million in 2004 for reasons generally the same as for the first six months of 2005.

 

This excerpt taken from the USM 10-Q filed Apr 26, 2006.
Interest (expense) decreased $2.6 million, or 11%, to $21.1 million in 2005 from $23.7 million in 2004. Interest expense in 2005 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.3 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.8 million); its Vodafone forward contracts ($1.6 million); and its revolving credit facility with a series of banks ($0.5 million).

 

Interest expense in 2004 is primarily related to U.S. Cellular’s 6.7% senior notes ($9.0 million); its 7.5% senior notes ($6.3 million); its 8.75% senior notes ($2.9 million); its Vodafone forward contracts ($0.8 million); its revolving credit facility with a series of banks ($0.8 million); its Liquid Yield Option Notes ($0.9 million); and its 7.25% senior notes ($2.4 million).

 

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