UNITED STATES CELLULAR CORPORATION (NYSE:USM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
See disclosure under Item 8.01 Other Events, which is
incorporated herein to the extent applicable.
Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
See disclosure under Item 8.01 Other Events, which is
incorporated herein to the extent applicable.
Item 8.01. Other Events.
As previously disclosed, the Federal Communications Commission
(FCC) announced United States Cellular Corporation (U.S.
Cellular) as a qualified bidder in the FCCs forward auction of
600 MHz spectrum licenses, referred to as Auction 1002. The
Assignment Phase of the auction was completed on March 30, 2017.
On April 13, 2017, the FCC announced that U.S. Cellular was the
winning bidder for 188 licenses for an aggregate purchase price
of $329 million. At the inception of the auction process in June
2016, U.S. Cellular made an upfront payment to the FCC of $143
million which, based on the final outcome of the auction, is
sufficient to cover its down payment obligation that is due by
April 27, 2017. 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 FCCs
standard post-auction licensing process. U.S. Cellular currently
expects to make such payment using cash on hand and/or borrowings
under its revolving credit agreement.
About UNITED STATES CELLULAR CORPORATION (NYSE:USM)
United States Cellular Corporation (U.S. Cellular) is a provider of wireless telecommunication services. The Company operates all of its wireless operating markets are in the United States. U.S. Cellular provides service to postpaid and prepaid customers from a range of demographic segments. The Company focuses on retail consumers, government and small-to-mid-size business customers in vertical industries, such as construction, retail, professional services and real estate. The Company offers a range of wireless devices, such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers. U.S. Cellular offers wireless devices that are compatible with fourth generation long term evolution (4G LTE) and third generation (3G) networks. U.S. Cellular offers a range of accessories, such as carrying cases, hands-free devices, batteries, battery chargers, and memory cards to related consumer electronics, such as headphones, speakers and Bluetooth keyboards. UNITED STATES CELLULAR CORPORATION (NYSE:USM) Recent Trading Information
UNITED STATES CELLULAR CORPORATION (NYSE:USM) closed its last trading session down -0.02 at 37.83 with 159,501 shares trading hands.