U.S. Cellular to pay license purchase price via revolver debt

By Tali Rackner

Minneapolis, April 20 – Telephone and Data Systems, Inc. subsidiary United States Cellular Corp. plans to use borrowings under its revolving credit agreement and/or cash on hand to pay the remaining amount owed on its purchase of 600 MHz spectrum licenses from the Federal Communications Commission, according to an 8-K/A filing with the Securities and Exchange Commission.

The total price for the 188 licenses is $329 million.

At the beginning of the auction process in June 2016, U.S. Cellular made an upfront payment of $143 million.

On April 13, the FCC announced that it was the winning bidder.

U.S. Cellular is required to pay the remainder of the purchase price of $186 million to the FCC by May 11, 2017, and expects to receive the licenses at the conclusion of the FCC’s standard post-auction licensing process, the filing said.

The cell service provider and its parent company are based in Chicago.

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