Verizon Wireless 2007 Annual Report Download - page 58

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56
Notes to Consolidated Financial Statements continued
Notes Payable
In April 2007, Verizon issued $750 million of 5.50% notes due 2017, $750
million of 6.25% notes due 2037, and $500 million of floating rate notes
due 2009 resulting in cash proceeds of $1,977 million, net of discounts
and issuance costs.
In March 2007, Verizon issued $1,000 million of 13-month floating rate
exchangeable notes with an original maturity of 2008. These notes are
exchangeable periodically at the option of the note holder into similar
notes until 2017.
In February 2007, Verizon utilized a $425 million floating rate vendor
financing facility due 2013.
In February 2008, we issued $4,000 million of fixed rate notes, with
varying maturities, that resulted in cash proceeds of $3,953 million, net of
discounts and issuance costs.
Previously, Verizon issued $1,750 million in principal amount at matu-
rity of floating rate notes due August 15, 2007. On January 8, 2007, we
redeemed the remaining $1,580 million principal of the outstanding
floating rate notes at a redemption price equal to 100% of the principal
amount of the notes being redeemed plus accrued and unpaid interest
through the date of redemption. The total payment on the date of
redemption was approximately $1,593 million. Approximately $1,600 mil-
lion of other borrowings were redeemed during 2007.
NOTE 11
DEBT
Debt Maturing Within One Year
Debt maturing within one year is as follows:
(dollars in millions)
At December 31, 2007 2006
Long-term debt maturing within one year $ 2,564 $ 4,139
Commercial paper 390 3,576
Total debt maturing within one year $ 2,954 $ 7,715
The weighted average interest rate for our commercial paper at December
31, 2007 and December 31, 2006 was 4.6% and 5.3%, respectively.
Capital expenditures (primarily acquisition and construction of network
assets) are partially financed, pending long-term financing, through bank
loans and the issuance of commercial paper payable within 12 months.
At December 31, 2007, we had approximately $6.2 billion of unused bank
lines of credit (including a $6 billion three-year committed facility that
expires in September 2009 and various other facilities totaling approxi-
mately $400 million). Certain of these lines of credit contain requirements
for the payment of commitment fees.
Long-Term Debt
Outstanding long-term debt obligations are as follows:
(dollars in millions)
At December 31, Interest Rates % Maturities 2007 2006
Notes payable 4.00 – 8.23 2008 – 2037 $ 14,923 $ 14,805
Telephone subsidiaries – debentures 4.63 – 7.00 2008 – 2033 10,580 11,703
7.15 – 7.63 2012 – 2032 850 1,275
7.85 – 8.75 2010 – 2031 1,679 1,679
Other subsidiaries – debentures and other 6.46 – 8.75 2008 – 2028 2,450 2,977
Employee stock ownership plan loans – NYNEX debentures 9.55 2010 70 92
Capital lease obligations (average rate 6.8% and 8.0%) 312 360
Unamortized discount, net of premium (97) (106)
Total long-term debt, including current maturities 30,767 32,785
Less: debt maturing within one year (2,564) (4,139)
Total long-term debt $ 28,203 $ 28,646