UNITED STATES CELLULAR CORPORATION (a Delaware corporation) Debt Securities TERMS AGREEMENT

EX-1.2 3 a11-11376_5ex1d2.htm EX-1.2

Exhibit 1.2

 

UNITED STATES CELLULAR CORPORATION

 

(a Delaware corporation)

 

Debt Securities

 

TERMS AGREEMENT

 

May 9, 2011

 

To:                              United States Cellular Corporation
8410 West Bryn Mawr Avenue, Suite 700
Chicago, Illinois 60631

 

Ladies and Gentlemen:

 

We understand that United States Cellular Corporation, a Delaware corporation (the “Company”), proposes to issue and sell $300,000,000 aggregate principal amount of its senior debt securities (the “Securities”) (such securities also being hereinafter referred to as the “Initial Underwritten Securities”).  Subject to the terms and conditions set forth or incorporated by reference herein, we the underwriters named below (the “Underwriters”) offer to purchase, severally and not jointly, the principal amount of Initial Underwritten Securities opposite their names set forth below at the purchase price set forth below, and a proportionate share of Option Underwritten Securities set forth below, to the extent any are purchased.

 

Underwriters

 

Principal Amount
of Initial
Underwritten
Securities

 

Citigroup Global Markets Inc.

 

$

58,875,000

 

Merrill Lynch, Pierce, Fenner & Smith Incorporated

 

58,875,000

 

UBS Securities LLC

 

58,875,000

 

Wells Fargo Securities, LLC

 

58,875,000

 

RBC Capital Markets, LLC

 

15,000,000

 

BNY Mellon Capital Markets, LLC

 

6,000,000

 

Comerica Securities, Inc.

 

6,000,000

 

SunTrust Robinson Humphrey, Inc.

 

6,000,000

 

TD Securities (USA) LLC

 

6,000,000

 

U.S. Bancorp Investments, Inc.

 

6,000,000

 

Ameriprise Financial Services, Inc.

 

1,500,000

 

BB&T Capital Markets, a division of Scott & Stringfellow, LLC

 

1,500,000

 

Janney Montgomery Scott LLC

 

1,500,000

 

Keefe, Bruyette & Woods, Inc.

 

1,500,000

 

Morgan Keegan & Company, Inc.

 

1,500,000

 

Oppenheimer & Co. Inc.

 

1,500,000

 

Robert W. Baird & Co. Incorporated

 

1,500,000

 

Stifel, Nicolaus & Company, Incorporated

 

1,500,000

 

B.C. Ziegler and Co.

 

750,000

 

Blaylock Robert Van, LLC

 

750,000

 

Cabrera Capital Markets, LLC

 

750,000

 

CastleOak Securities, L.P.

 

750,000

 

D.A. Davidson & Co.

 

750,000

 

Davenport & Company LLC

 

750,000

 

JJB Hilliard, WL Lyons, Inc.

 

750,000

 

KeyBanc Capital Markets Inc.

 

750,000

 

Samuel A. Ramirez & Company, Inc.

 

750,000

 

The Williams Capital Group, L.P.

 

750,000

 

 

 

 

 

Total

 

$

300,000,000

 

 



 

The Underwritten Securities shall have the following terms:

 

Debt Securities

 

Title:

 

6.95% Senior Notes due 2060

 

 

 

Rank:

 

Senior unsecured obligations of the Company

 

 

 

Aggregate principal amount of Initial Underwritten Securities:

 

$300,000,000

 

 

 

Option Underwritten Securities:

 

$42,000,000

 

 

 

Denominations:

 

$25 and integral multiples of $25 in excess thereof

 

 

 

Currency of payment:

 

US Dollars

 

 

 

Interest rate:

 

6.95% per annum

 

 

 

Interest payment dates:

 

March 15, June 15, September 15 and December 15, commencing June 15, 2011

 

 

 

Regular record dates:

 

The first business day preceding the respective interest payment date

 

 

 

Stated maturity date:

 

May 15, 2060

 

 

 

Redemption provisions:

 

The Notes may be redeemed, in whole or in part, at the Company’s option at any time on and after May 15, 2016 at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest to the redemption date

 

 

 

Sinking fund requirements:

 

None

 

 

 

Conversion provisions:

 

None

 

2



 

Listing requirements:

 

NYSE within 30 days of settlement date

 

 

 

CUSIP / ISIN:

 

911684 405/ US9116844054

 

 

 

Black-out provisions:

 

May 9, 2011 through May 16, 2011

 

 

 

Price to Public:

 

$25 per Note; 100% of the principal amount, plus accrued interest, if any, from May 16, 2011

 

 

 

Purchase price:

 

$24.2125 per Note; 96.85% of principal amount, plus accrued interest, if any, from May 16, 2011

 

 

 

Form:

 

Book-entry only

 

 

 

Other terms and conditions:

 

None

 

 

 

Initial Sale Time:

 

4:00 P.M., New York City time, on May 9, 2011

 

 

 

Free writing prospectus included in Disclosure Package (See Section 1(a)(2)):

 

Free writing prospectus, dated May 9, 2011

 

 

 

Electronic road show or other written communications included in Company Additional Written Communication (See Section 1(a)(6)):

 

None

 

 

 

Closing date and location:

 

May 16, 2011 at the offices of Sidley Austin LLP, One S. Dearborn Street, Chicago, Illinois 60603

 

All of the provisions contained in the document attached as Annex I hereto entitled “UNITED STATES CELLULAR CORPORATION — Debt Securities — Final Term Sheet” as was filed with the Securities and Exchange Commission on May 9, 2011, and the document attached as Annex II hereto entitled “UNITED STATES CELLULAR CORPORATION — Debt Securities — Underwriting Agreement” are hereby incorporated by reference in their entirety herein and shall be deemed to be a part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein.  Terms defined in such document are used herein as therein defined.

 

3



 

Please accept this offer no later than 4:00 o’clock P.M. (New York City time) on May 9, 2011 by signing a copy of this Terms Agreement in the space set forth below and returning the signed copy to us.

 

 

Very truly yours,

 

 

 

CITIGROUP GLOBAL MARKETS INC.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

 

UBS SECURITIES LLC

 

WELLS FARGO SECURITIES, LLC

 

 

 

 

As Representatives of the Several Underwriters Referred to Below

 

 

 

 

 

 

BY: WELLS FARGO SECURITIES, LLC

 

 

 

 

 

 

By:

/s/ Carolyn Hurley

 

 

Authorized Signatory

 

 

 

 

Acting on behalf of itself and the other named Underwriters.

 

 

Accepted:

 

 

 

UNITED STATES CELLULAR CORPORATION

 

 

 

 

 

 

 

 

 

By

 

/s/ LeRoy T. Carlson, Jr.

 

 

Name:

LeRoy T. Carlson, Jr.

 

 

Title:

Chairman

 

 

 

 

 

 

 

By

/s/ Kenneth R. Meyers

 

Name:

Kenneth R. Meyers

 

Title:

Chief Accounting Officer

 

 

[Signature Page to the Terms Agreement]

 



 

Annex I to Terms Agreement

 

Form of Pricing Term Sheet

 

Free Writing Prospectus

(To Prospectus dated May 9, 2011 and

Preliminary Prospectus Supplement Dated May 9, 2011)

 

$300,000,000

 

United States Cellular Corporation

 

6.95% Senior Notes due 2060

 

Pricing Term Sheet

 

Issuer:

United States Cellular Corporation

 

 

Security:

6.95% Senior Notes due 2060

 

 

Principal Amount:

$300,000,000

 

 

Over-Allotment Option:

$42,000,000

 

 

Denominations:

$25 and integral multiples of $25 in excess thereof

 

 

Trade Date:

May 9, 2011

 

 

Settlement Date:

May 16, 2011 (T+5)

 

 

Maturity Date:

May 15, 2060

 

 

Coupon:

6.95%

 

 

Interest Payment Dates:

March 15, June 15, September 15 and December 15, commencing June 15, 2011

 

 

Price to Public:

$25 per note

 

 

Optional Redemption:

The Issuer may redeem the Notes, in whole or in part, at any time on and after May 15, 2016 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

 

 

Use of Proceeds:

The Issuer expects to use the net proceeds from the offering to redeem some or all of its 7.50% Senior Notes due 2034, of which $330 million in aggregate principal amount is outstanding. Any remaining net proceeds will be used for general corporate purposes.

 

 

Listing:

The Issuer intends to list the Notes on the New York Stock Exchange and expects trading in the Notes on the New York Stock Exchange to begin within 30 days after the

 

A-I-1



 

 

Settlement Date.

 

 

CUSIP/ISIN:

911684 405/ US9116844054

 

 

Joint Book-Running Managers:

Citigroup Global Markets Inc.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

UBS Securities LLC

 

Wells Fargo Securities, LLC

 

 

Co-Managers:

RBC Capital Markets, LLC

BNY Mellon Capital Markets, LLC

Comerica Securities, Inc.

SunTrust Robinson Humphrey, Inc.

TD Securities (USA) LLC

U.S. Bancorp Investments, Inc.

 

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.

 

You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll-free at ###-###-#### or e-mail ***@***; or Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at ###-###-#### or e-mail ***@***; or UBS Securities LLC toll-free at ###-###-####, extension ###-###-####; or Wells Fargo Securities, LLC toll-free at ###-###-#### or e-mail ***@***.

 

A-I-2



 

Annex II to Terms Agreement

 

UNITED STATES CELLULAR CORPORATION

 

Underwriting Agreement

 

[see attached]