CHICAGO-U.S. Cellular Corp. reported the early repayment of a $105 million inter-company note due in 2008 to parent company Telephone and Data Systems Inc. that U.S. Cellular said will reduce interest expenses. The carrier noted it used funds from its $700 million revolving credit facility to repay the note, which carries an 8.1-percent annual interest rate.
U.S. Cellular originally used the $105 million loan in 2002 as part of its $610 million acquisition of PrimeCo Wireless Communications L.L.C.’s Chicago market.
