| | |
Per Note
|
| |
Total
|
| ||||||
Public Offering Price(1)
|
| | | | 100.00% | | | | | $ | 500,000,000 | | |
Underwriting Discount(2)
|
| | | | 2.857785% | | | | | $ | 14,288,925 | | |
Proceeds to UScellular (before expenses)(2)
|
| | | | 97.142215% | | | | | $ | 485,711,075 | | |
| | |
Page
|
| |||
Prospectus Supplement
|
| | | | | | |
| | | | S-ii | | | |
| | | | S-ii | | | |
| | | | S-ii | | | |
| | | | S-1 | | | |
| | | | S-6 | | | |
| | | | S-9 | | | |
| | | | S-10 | | | |
| | | | S-11 | | | |
| | | | S-19 | | | |
| | | | S-22 | | | |
| | | | S-27 | | | |
| | | | S-29 | | | |
| | | | S-29 | | | |
| | | | S-29 | | | |
Prospectus
|
| | | | | | |
| | | | 2 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 14 | | | |
| | | | 16 | | | |
| | | | 16 | | | |
| | | | 17 | | |
| | |
For or as of the Year Ended December 31,
|
| |
For or as of the Three
Months Ended March 31, |
| ||||||||||||||||||||||||
|
2018
|
| |
2019(e)
|
| |
2020
|
| |
2020
|
| |
2021
|
| |||||||||||||||||
|
(Dollars in millions, except per user and per account amounts)
|
| |||||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service revenues
|
| | | $ | 2,978 | | | | | $ | 3,035 | | | | | $ | 3,067 | | | | | $ | 762 | | | | | $ | 771 | | |
Equipment sales
|
| | | | 989 | | | | | | 987 | | | | | | 970 | | | | | | 201 | | | | | | 252 | | |
Operating revenues
|
| | | | 3,967 | | | | | | 4,022 | | | | | | 4,037 | | | | | | 963 | | | | | | 1,023 | | |
Operating income
|
| | | | 158 | | | | | | 112 | | | | | | 173 | | | | | | 50 | | | | | | 84 | | |
Interest (expense)
|
| | | | (116) | | | | | | (110) | | | | | | (112) | | | | | | (24) | | | | | | (39) | | |
Income before income taxes
|
| | | | 215 | | | | | | 185 | | | | | | 250 | | | | | | 76 | | | | | | 89 | | |
Net income attributable to UScellular shareholders
|
| | | | 150 | | | | | | 127 | | | | | | 229 | | | | | | 71 | | | | | | 60 | | |
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 580 | | | | | | 285 | | | | | | 1,271 | | | | | | 258 | | | | | | 479 | | |
Short-term investments
|
| | | | 17 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 3 | | |
Licenses
|
| | | | 2,186 | | | | | | 2,471 | | | | | | 2,629 | | | | | | 2,502 | | | | | | 3,915 | | |
Investments in unconsolidated entities
|
| | | | 441 | | | | | | 447 | | | | | | 435 | | | | | | 469 | | | | | | 455 | | |
Property, plant and equipment, net
|
| | | | 2,202 | | | | | | 2,207 | | | | | | 2,466 | | | | | | 2,268 | | | | | | 2,419 | | |
Total assets(a)
|
| | | | 7,274 | | | | | | 8,164 | | | | | | 9,681 | | | | | | 8,251 | | | | | | 10,148 | | |
Total long-term debt, net (excluding current portion)
|
| | | | 1,605 | | | | | | 1,502 | | | | | | 2,489 | | | | | | 1,503 | | | | | | 2,981 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation, amortization and accretion expense
|
| | | | 640 | | | | | | 702 | | | | | | 683 | | | | | | 177 | | | | | | 170 | | |
Capital expenditures
|
| | | | 515 | | | | | | 710 | | | | | | 940 | | | | | | 236 | | | | | | 125 | | |
Total retail connections
|
| | | | 4,988,000 | | | | | | 4,889,000 | | | | | | 4,911,000 | | | | | | 4,853,000 | | | | | | 4,902,000 | | |
Postpaid average revenue per user(b)
|
| | | $ | 44.98 | | | | | $ | 46.01 | | | | | $ | 47.01 | | | | | $ | 47.23 | | | | | $ | 47.65 | | |
Postpaid average revenue per account(c)
|
| | | $ | 118.93 | | | | | $ | 119.80 | | | | | $ | 122.93 | | | | | $ | 122.92 | | | | | $ | 125.25 | | |
Postpaid churn rate(d)
|
| | | | 1.25% | | | | | | 1.31% | | | | | | 1.09% | | | | | | 1.21% | | | | | | 1.12% | | |
| | |
March 31, 2021
(unaudited) |
| |||||||||
| | |
Actual
|
| |
As Adjusted
|
| ||||||
| | |
(In millions)
|
| |||||||||
Cash and cash equivalents: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 479 | | | | | $ | 388 | | |
Short-term debt: | | | | | | | | | | | | | |
Revolving Credit Facility
|
| | | $ | — | | | | | $ | — | | |
Current portion of long-term debt
|
| | | | 2 | | | | | | 2 | | |
Total short-term debt
|
| | | $ | 2 | | | | | $ | 2 | | |
Long-term debt: | | | | | | | | | | | | | |
5.500% Senior Notes due 2070
|
| | | $ | 500 | | | | | $ | 500 | | |
6.250% Senior Notes due 2069
|
| | | | 500 | | | | | | 500 | | |
7.25% Senior Notes due 2064
|
| | | | 300 | | | | | | — | | |
7.25% Senior Notes due 2063(1)
|
| | | | 275 | | | | | | — | | |
6.95% Senior Notes due 2060
|
| | | | 342 | | | | | | 342 | | |
6.70% Senior Notes due 2033(2)
|
| | | | 544 | | | | | | 544 | | |
Term Loan
|
| | | | 298 | | | | | | 298 | | |
Receivables Securitization Facility
|
| | | | 300 | | | | | | 300 | | |
Notes offered hereby
|
| | | | — | | | | | | 500 | | |
Other
|
| | | | 3 | | | | | | 3 | | |
Total long-term debt, excluding current portion
|
| | | | 3,062 | | | | | | 2,987 | | |
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
|
| | | | 1,657 | | | | | | 1,657 | | |
Treasury shares, at cost, 2 Common Shares
|
| | | | (66) | | | | | | (66) | | |
Retained earnings
|
| | | | 2,796 | | | | | | 2,796 | | |
Total UScellular shareholders’ equity
|
| | | | 4,475 | | | | | | 4,475 | | |
Non controlling interests
|
| | | | 15 | | | | | | 15 | | |
Total equity
|
| | | | 4,490 | | | | | | 4,490 | | |
Total capitalization
|
| | | $ | 7,554 | | | | | $ | 7,479 | | |
| | |
March 31, 2021
(Dollars in millions) |
| |||
5.500% Senior Notes due 2070
|
| | | $ | 500 | | |
6.250% Senior Notes due 2069
|
| | | | 500 | | |
7.25% Senior Notes due 2064
|
| | | | 300 | | |
7.25% Senior Notes due 2063(1)
|
| | | | 275 | | |
6.95% Senior Notes due 2060
|
| | | | 342 | | |
6.70% Senior Notes due 2033(2)
|
| | | | 544 | | |
Term Loan
|
| | | | 300 | | |
Receivables Securitization Facility
|
| | | | 300 | | |
Subtotal
|
| | | | 3,061 | | |
Long-term debt of UScellular subsidiaries
|
| | | | 3 | | |
Total long-term debt
|
| | | | 3,064 | | |
Less: current portion of long-term debt
|
| | | | (2) | | |
Total long-term debt, excluding current portion
|
| | | $ | 3,062 | | |
Underwriters
|
| |
Principal Amount
of Notes |
| |||
BofA Securities, Inc.
|
| | | $ | 82,000,000 | | |
Morgan Stanley & Co. LLC
|
| | | | 82,000,000 | | |
RBC Capital Markets, LLC
|
| | | | 82,000,000 | | |
UBS Securities LLC
|
| | | | 82,000,000 | | |
Wells Fargo Securities, LLC
|
| | | | 82,000,000 | | |
Citigroup Global Markets Inc.
|
| | | | 50,000,000 | | |
BNY Mellon Capital Markets, LLC
|
| | | | 10,000,000 | | |
CIBC World Markets Corp.
|
| | | | 10,000,000 | | |
TD Securities (USA) LLC
|
| | | | 10,000,000 | | |
U.S. Bancorp Investments, Inc.
|
| | | | 10,000,000 | | |
Total
|
| | | $ | 500,000,000 | | |
| | |
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