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Debt | 12 Months Ended
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Dec. 31, 2012
Disclosure Text Block |
Debt | NOTE 12 DEBT Revolving Credit Facility At December 31, 2012, U.S. Cellular had a revolving credit facility available f or general corporate purposes. Amounts under the revolving credit facility may be borrowed, repaid and reborrowed from time to time until maturity. U.S. Cellular did not borrow under its current or previous rev olving credit facilities in 2012, 2011 or 2010 except for letters of credit. U.S. Cellular's interest cost on its revolving credit facility is subject to increase if its current credit ratings from nationally recognized credit rating agencies is lowered, and is subject to decrease i f the ratings are raised. The credit facili ty would not cease to be available nor would the maturity date accelerate solely as a result of a downgrade in U.S. Cellular's credit rating. However, a downgrade in U.S. Cellular's credit rating could adversely affect its ability to renew the credit facilities or obtain access to other credit facilities in the future. The maturity date of any borrowings under the U.S. Cellular revolving credit facilit y would accelerate in the event of a change in control. In 2012, the U.S. Cellular revolving credit facility was amended to extend the maturity date from December 2015 to December 2017.
The following table summarizes the terms of the revolving credit facility as of December 31, 2012:
(Dollars in millions) |  |  |
Maximum borrowing capacity | $ | 300.0 |
Letters of credit outstanding | $ | 0.2 |
Amount borrowed | $ | - |
Amount available for use | $ | 299.8 |
Borrowing rate: One-month London Interbank Offered Rate ("LIBOR") plus contractual spread (1) |  | 1.46 | %
| LIBOR |  | 0.21 | %
| Contractual spread |  | 1.25 | %
Range of commitment fees on amount available for use (2) |  |  |
| Low |  | 0.13 | %
| High |  | 0.30 | %
Agreement date |  | December 2010 |
Maturity date |  | December 2017 |
Fees incurred attributable to the Revolving Credit Facility are as follows: |  |  |
| Fees incurred as a percent of Maximum borrowing capacity for 2012 |  | 0.38 | %
| Fees incurred, amount |  |  |
|  | 2012 | $ | 1.1 |
|  | 2011 | $ | 1.2 |
|  | 2010 | $ | 3.8 |
(1) | Borrowings under the revolving credit facility bear interest at LIBOR plus a contractual spread based on U.S. Cellular’s credit rating or, at U.S. Cellular’s option, an alternate “Base Rate” as defined in the revolving credit agreement. U.S. Cellular may select a borrowing period of either one, two, three or six months (or other period of twelve months or less if requested by U.S. Cellular and approved by the lenders). If U.S. Cellular provides notice of intent to borrow less than three business days in advance of a borrowing, interest on borrowing is at the Base Rate plus the contractual spread.
(2) | The revolving credit facility has commitment fees based on the unsecured senior debt ratings assigned to U.S. Cellular by certain ratings agencies.
The continued availability of the revolving credit facility requires U.S. Cellular to comply with certain negative and affirmative covenants, maintain certa in financial ratios and make representations regarding certain matters at the time of each borrowing. U.S. Cellular believe s it was in compliance as of December 31, 2012 with all covenants and other requirements set forth in the revolving credit facilit y. In connection with U.S. Cellular's revolving credit facility, TDS and U.S. Cellular entered into a subordination agreement dated December 17, 2010 together with the administrative agent for the lenders under U.S. Cellular's revolving credit agreement. Pursuant to this subordination agreement, (a) any consolidated funded indebtedness from U.S. Cellular to TDS will be unsecured and (b) any (i) consolidated funded indebtedness from U.S. Cellular to TDS (other than “refinancing indebtedness” as defined in the subordination agreement) in excess of $105,000,000, and (ii) refinancing indebtedness in excess of $250,000,000, will be subordinated and made junior in right of payment to the prior payment in full of obligations to the lenders under U.S. Cellular's revolving credit agreement. As of December 31, 2012, U.S. Cellular had no outstanding consolidated funded indebtedness or refinancing indebtedness that was subordinated to the revolving credit agreement pursuant to the subordination agreement. At December 31, 2012, U.S. Cellular ha d recorded $3.4 million of issuance costs related to the revolving credit facilit y which is included in Other assets and deferred charges in the Consolidated Balance Sheet.
Long-Term Debt
Long-term debt as of December 31, 2012 and 2011 was as follows:
December 31, |  |  |  |  |  |  | 2012 |  | 2011
(Dollars in thousands) | Issuance date |  | Maturity date |  | Call date |  |  |  |  |  |
|  | Unsecured Senior Notes |  |  |  |  |  |  |  |  |  |  |
|  |  | 6.7% | December 2003 and June 2004 |  | December 2033 |  | December 2003 |  | $ | 544,000 |  | $ | 544,000
|  |  | Less: 6.7% Unamortized discount |  |  |  |  |  |  |  | (11,806) |  |  | (9,889)
|  |  |  |  |  |  |  |  |  |  |  | 532,194 |  |  | 534,111
|  |  | 6.95% | May 2011 |  | May 2060 |  | May 2016 |  |  | 342,000 |  |  | 342,000
|  | Obligation on capital leases |  |  |  |  |  |  |  | 4,756 |  |  | 4,336
Total long-term debt |  |  |  |  |  |  |  | 878,950 |  |  | 880,447
|  | Long-term debt, current |  |  |  |  |  |  |  | 92 |  |  | 127
|  | Long-term debt, noncurrent |  |  |  |  |  |  | $ | 878,858 |  | $ | 880,320
U.S. Cellular may redeem the 6.7% Senior Notes, in whole or in part, at any time prior to maturity at a redemption price equal to the greater of (a) 100% of the principal amount of such notes, plus accrued and unpaid interest, or (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semi-annual basis at the Treasury Rate plus 30 basis points. U.S. Cellular may redeem the 6.95% Senior Notes, in whole or in part at any time after the call date, at a redemption price equal to 100% of the principal amount redeemed pl us accrued and unpaid interest. Interest on the 6.7% Senior Notes is payable semi-annually, and on the 6.95% Senior Notes is payable quarterly. Capitalized debt issuance costs for Unsecured Senior Notes totaled $16.3 million and are included in Other assets and deferred charges (a long-term asset account). These costs are amortized over the life of the notes using the effective in terest method. U.S. Cellular does not have any annual requirements for principal payments on long-term debt over the next five years (excluding capital lease obli g ations). The covenants associated with U.S. Cellular's long-term debt obligations, among other things, restrict U.S. Cellular's ability, subject to certain exclus ions, to incur additional liens, enter into s ale and leaseback transactions, and sell, consolidate or merge assets. U.S. Cellular's long-term debt indenture does not contain any provisions resulting in acceleration of the maturities of outstanding debt in the event of a change in U.S. Cellular's credit rating. However, a downgrade in U.S. Cellular's credit rating could adversely affect its ability to obtain long-term debt financing in the future.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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