XML 40 R14.htm IDEA: XBRL DOCUMENT v3.22.1
Debt
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Debt
Note 8 Debt
Revolving Credit Agreement
The following table summarizes the revolving credit agreement as of March 31, 2022:
(Dollars in millions)
Maximum borrowing capacity$300 
Letters of credit outstanding$— 
Amount borrowed$— 
Amount available for use$300 
Borrowings under the UScellular revolving credit agreement bear interest at a rate of Secured Overnight Financing Rate (SOFR) plus 1.60%.
During the three months ended March 31, 2022, UScellular borrowed and repaid $75 million under its revolving credit agreement.
UScellular believes that they were in compliance with all of the financial and other covenants and requirements set forth in their revolving credit agreement as of March 31, 2022.
Term Loan Agreements
The following table summarizes the term loan credit agreements as of March 31, 2022:
(Dollars in millions)
Maximum borrowing capacity$800 
Amount borrowed and outstanding$699 
Amount borrowed and repaid$1 
Amount available for use$100 
Borrowings under the UScellular term loan agreements bear interest at a rate of SOFR plus 1.60%, SOFR plus 2.10% or SOFR plus 2.60%. The amount available for use may be drawn in one or more advances by July 30, 2022; amounts not drawn by that time will cease to be available. The maturity dates of the UScellular term loan agreements are July 2026, July 2028 and July 2031.
UScellular believes that it was in compliance with all of the financial and other covenants and requirements set forth in its term loan credit agreements as of March 31, 2022.
Export Credit Financing Agreement
In December 2021, UScellular entered into a $150 million term loan credit facility with Export Development Canada to finance (or refinance) equipment imported from Canada, including equipment purchased prior to entering the term loan credit facility agreement. Borrowings bear interest at a rate of SOFR plus 1.60% and are due and payable on the five-year anniversary of the first borrowing, which is in January 2027. During the three months ended March 31, 2022, UScellular borrowed $150 million, which is the full amount available under the agreement.
UScellular believes it was in compliance with all of the financial and other covenants and requirements set forth in their export credit financing agreement as of March 31, 2022.
Receivables Securitization Agreement
UScellular, through its subsidiaries, has a receivables securitization agreement for securitized borrowings using its equipment installment receivables. In March 2022, UScellular amended the agreement to extend the maturity date to March 2024. There were no significant changes to other terms of the receivable securitization agreement. Amounts under the receivables securitization agreement may be borrowed, repaid and reborrowed from time to time until maturity, which may be extended from time to time as specified therein. The outstanding borrowings bear interest at a rate that approximates SOFR plus 0.90%. During the three months ended March 31, 2022, UScellular repaid $50 million under the agreement. As of March 31, 2022, the outstanding borrowings under the agreement were $400 million and the unused borrowing capacity under the agreement was $50 million, subject to sufficient collateral to satisfy the asset borrowing base provisions of the agreement. As of March 31, 2022, the USCC Master Note Trust held $529 million of assets available to be pledged as collateral for the receivables securitization agreement.
UScellular believes it was in compliance with all of the financial and other covenants and requirements set forth in their receivables securitization agreement as of March 31, 2022.
In April 2022, UScellular repaid $50 million under the receivables securitization agreement.
Repurchase Agreement
In January 2022, UScellular, through a subsidiary (the repo subsidiary), entered into a repurchase agreement to borrow up to $200 million, subject to the availability of eligible equipment installment plan receivables and the agreement of the lender. The transaction form involves the sale of receivables by the repo subsidiary and the commitment to repurchase at the end of the applicable repurchase term, which may extend up to one month. The transaction is accounted for as a one-month secured borrowing. The outstanding borrowings bear interest at a rate of SOFR plus 1.25%. Although the lender holds a security interest in the receivables, the repo subsidiary retains effective control and collection risk of the receivables, and therefore, any activity associated with the repurchase agreement will be treated as a secured borrowing. UScellular will continue to report equipment installment plan receivables and any related balances on the Consolidated Balance Sheet. The expiration date of the repurchase agreement is in January 2023. During the three months ended March 31, 2022, the repo subsidiary borrowed $60 million under the repurchase agreement. As of March 31, 2022, the outstanding borrowings under the agreement were $60 million and the unused borrowing capacity was $140 million. The outstanding borrowings are included in Other current liabilities in the March 31, 2022 Consolidated Balance Sheet. As of March 31, 2022, UScellular held $539 million of assets available for inclusion in the repurchase facility; these assets are distinct from the assets held by the USCC Master Note Trust for UScellular's receivables securitization agreement.