| | |
Per Note
|
| |
Total
|
| ||||||
Public Offering Price(1)
|
| | | | 100.00% | | | | | $ | 500,000,000 | | |
Underwriting Discount(2)
|
| | | | 3.15% | | | | | $ | 15,750,000 | | |
Proceeds to UScellular (before expenses)
|
| | | | 96.85% | | | | | $ | 484,250,000 | | |
| | |
Page
|
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Prospectus Supplement
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| | | | ii | | | |
| | | | iii | | | |
| | | | S-1 | | | |
| | | | S-6 | | | |
| | | | S-9 | | | |
| | | | S-10 | | | |
| | | | S-11 | | | |
| | | | S-19 | | | |
| | | | S-22 | | | |
| | | | S-27 | | | |
| | | | S-29 | | | |
| | | | S-29 | | | |
| | | | S-29 | | | |
Prospectus
|
| ||||||
| | | | 3 | | | |
| | | | 6 | | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 16 | | | |
| | | | 18 | | | |
| | | | 18 | | | |
| | | | 18 | | |
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For or as of the Year
Ended December 31, |
| |
For or as of the Nine Months
Ended September 30, |
| ||||||||||||||||||||||||
| | |
2017
|
| |
2018(e)
|
| |
2019(f)
|
| |
2019(f)
|
| |
2020
|
| |||||||||||||||
| | |
(Dollars in millions, except per user and per account amounts)
|
| |||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service revenues
|
| | | $ | 2,978 | | | | | $ | 2,978 | | | | | $ | 3,035 | | | | | $ | 2,272 | | | | | $ | 2,290 | | |
Equipment sales
|
| | | | 912 | | | | | | 989 | | | | | | 987 | | | | | | 698 | | | | | | 674 | | |
Operating revenues
|
| | | | 3,890 | | | | | | 3,967 | | | | | | 4,022 | | | | | | 2,970 | | | | | | 2,964 | | |
Operating income (loss)
|
| | | | (304) | | | | | | 158 | | | | | | 112 | | | | | | 115 | | | | | | 168 | | |
Interest (expense)
|
| | | | (113) | | | | | | (116) | | | | | | (110) | | | | | | (87) | | | | | | (76) | | |
Income (loss) before income taxes
|
| | | | (272) | | | | | | 215 | | | | | | 185 | | | | | | 170 | | | | | | 238 | | |
Net income attributable to UScellular shareholders
|
| | | | 12 | | | | | | 150 | | | | | | 127 | | | | | | 109 | | | | | | 224 | | |
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 352 | | | | | | 580 | | | | | | 285 | | | | | | 570 | | | | | | 931 | | |
Short-term investments
|
| | | | 50 | | | | | | 17 | | | | | | — | | | | | | — | | | | | | — | | |
Licenses
|
| | | | 2,223 | | | | | | 2,186 | | | | | | 2,471 | | | | | | 2,461 | | | | | | 2,628 | | |
Investments in unconsolidated entities
|
| | | | 415 | | | | | | 441 | | | | | | 447 | | | | | | 471 | | | | | | 467 | | |
Property, plant and equipment, net
|
| | | | 2,320 | | | | | | 2,202 | | | | | | 2,207 | | | | | | 2,144 | | | | | | 2,322 | | |
Total assets(a)
|
| | | | 6,841 | | | | | | 7,274 | | | | | | 8,164 | | | | | | 8,291 | | | | | | 9,180 | | |
Total long-term debt (excluding current maturities)
|
| | | | 1,622 | | | | | | 1,605 | | | | | | 1,502 | | | | | | 1,592 | | | | | | 2,108 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation, amortization and accretion expense
|
| | | | 615 | | | | | | 640 | | | | | | 702 | | | | | | 524 | | | | | | 516 | | |
Capital expenditures
|
| | | | 469 | | | | | | 515 | | | | | | 710 | | | | | | 467 | | | | | | 621 | | |
Total retail connections
|
| | | | 5,037,000 | | | | | | 4,988,000 | | | | | | 4,889,000 | | | | | | 4,905,000 | | | | | | 4,907,000 | | |
Postpaid average revenue per user(b)
|
| | | $ | 44.38 | | | | | $ | 44.98 | | | | | $ | 46.01 | | | | | $ | 45.82 | | | | | $ | 46.84 | | |
Postpaid average revenue per account(c)
|
| | | $ | 118.96 | | | | | $ | 118.93 | | | | | $ | 119.80 | | | | | $ | 119.39 | | | | | $ | 122.28 | | |
Postpaid churn rate(d)
|
| | | | 1.21% | | | | | | 1.25% | | | | | | 1.31% | | | | | | 1.29% | | | | | | 1.05% | | |
| | |
September 30, 2020
(unaudited) |
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(In millions)
|
| |||||||||
Cash and cash equivalents: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 931 | | | | | $ | 1,414 | | |
Short-term debt: | | | | | | | | | | | | | |
Revolving Credit Facility
|
| | | $ | — | | | | | $ | — | | |
Current portion of long-term debt
|
| | | | 2 | | | | | | 2 | | |
Total short-term debt
|
| | | $ | 2 | | | | | $ | 2 | | |
Long-term debt: | | | | | | | | | | | | | |
6.250% Senior Notes due 2069
|
| | | $ | 500 | | | | | $ | 500 | | |
7.25% Senior Notes due 2064
|
| | | | 300 | | | | | | 300 | | |
7.25% Senior Notes due 2063
|
| | | | 275 | | | | | | 275 | | |
6.95% Senior Notes due 2060
|
| | | | 342 | | | | | | 342 | | |
6.70% Senior Notes due 2033(1)
|
| | | | 544 | | | | | | 544 | | |
Term Loan
|
| | | | 83 | | | | | | 83 | | |
Receivables Securitization Facility
|
| | | | 125 | | | | | | 125 | | |
Notes offered hereby
|
| | | | — | | | | | | 500 | | |
Other
|
| | | | 3 | | | | | | 3 | | |
Total long-term debt
|
| | | | 2,172 | | | | | | 2,672 | | |
UScellular Shareholders’ equity: | | | | | | | | | | | | | |
Series A Common and Common Shares:
|
| | | | | | | | | | | | |
Authorized 190 shares (50 Series A Common and 140 Common Shares) Outstanding 86 shares (33 Series A Common and 53 Common Shares) Par Value ($1 per share) ($33 Series A Common and $55 Common Shares)
|
| | | | 88 | | | | | | 88 | | |
Additional paid-in capital
|
| | | | 1,654 | | | | | | 1,654 | | |
Treasury shares, at cost, 2 Common Shares
|
| | | | (67) | | | | | | (67) | | |
Retained earnings
|
| | | | 2,736 | | | | | | 2,736 | | |
Total UScellular shareholders’ equity
|
| | | | 4,411 | | | | | | 4,411 | | |
Non controlling interests
|
| | | | 15 | | | | | | 15 | | |
Total equity
|
| | | | 4,426 | | | | | | 4,426 | | |
Total capitalization
|
| | | $ | 6,598 | | | | | $ | 7,098 | | |
| | |
September 30, 2020
(Dollars in millions) |
| |||
6.70% Senior Notes due 2033(1)
|
| | | $ | 544 | | |
6.95% Senior Notes due 2060
|
| | | | 342 | | |
7.25% Senior Notes due 2063
|
| | | | 275 | | |
7.25% Senior Notes due 2064
|
| | | | 300 | | |
6.250% Senior Notes due 2069
|
| | | | 500 | | |
Term Loan
|
| | | | 83 | | |
Receivables Securitization Facility
|
| | | | 125 | | |
Subtotal
|
| | | | 2,169 | | |
Long-term debt of UScellular subsidiaries
|
| | | | 5 | | |
Total long-term debt
|
| | | | 2,174 | | |
Less: current portion of long-term debt
|
| | | | (2) | | |
Total long-term debt, excluding current portion
|
| | | $ | 2,172 | | |
Underwriters
|
| |
Principal Amount
of Notes |
| |||
BofA Securities, Inc.
|
| | | $ | 85,000,000 | | |
Morgan Stanley & Co. LLC
|
| | | | 85,000,000 | | |
RBC Capital Markets, LLC
|
| | | | 85,000,000 | | |
UBS Securities LLC
|
| | | | 85,000,000 | | |
Wells Fargo Securities, LLC
|
| | | | 85,000,000 | | |
Citigroup Global Markets Inc.
|
| | | | 35,000,000 | | |
BNY Mellon Capital Markets, LLC
|
| | | | 8,000,000 | | |
CIBC World Markets Corp.
|
| | | | 8,000,000 | | |
TD Securities (USA) LLC
|
| | | | 8,000,000 | | |
Truist Securities, Inc.
|
| | | | 8,000,000 | | |
U.S. Bancorp Investments, Inc.
|
| | | | 8,000,000 | | |
Total
|
| | | $ | 500,000,000 | | |
| | |
Page
|
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