Verizon Wireless 2008 Annual Report Download - page 57

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Notes to Consolidated Financial Statements continued
55
Notes Payable
In November 2008, Verizon issued $2,000 million of 8.75% notes due
2018 and $1,250 million of 8.95% notes due 2039, which resulted in cash
proceeds of $3,189 million net of discount and issuance costs. In April
2008, Verizon issued $1,250 million of 5.25% notes due 2013, $1,500 mil-
lion of 6.10% notes due 2018, and $1,250 million of 6.90% notes due
2038, resulting in cash proceeds of $3,950 million, net of discounts and
issuance costs. In February 2008, Verizon issued $750 million of 4.35%
notes due 2013, $1,500 million of 5.50% notes due 2018, and $1,750
million of 6.40% notes due 2038, resulting in cash proceeds of $3,953
million, net of discounts and issuance costs. In January 2008, Verizon uti-
lized a $239 million fixed rate vendor financing facility due 2010. During
the first quarter of 2008, $1,000 million of Verizon Communications Inc.
4.0% notes matured and were repaid.
NOTE 10
DEBT
Debt Maturing Within One Year
Debt maturing within one year is as follows:
(dollars in millions)
At December 31, 2008 2007
Long-term debt maturing within one year $ 3,506 $ 2,564
Commercial paper 1,487 390
Total debt maturing within one year $ 4,993 $ 2,954
The weighted average interest rate for our commercial paper at December
31, 2008 and December 31, 2007 was 2.9% and 4.6%, 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, 2008, we had approximately $5,600 million of unused
bank lines of credit which consisted of a three-year committed facility
that expires in September 2009. In addition, at December 31, 2008, we
had entered into a vendor provided credit facility that provided $150
million of financing capacity. 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 2008 2007
Notes payable 4.35 – 5.50 2009 – 2018 $ 7,878 $ 5,872
5.55 – 6.90 2012 – 2038 8,741 3,550
7.25 – 8.95 2009 – 2039 8,822 5,501
Verizon Wireless – notes payable and other 7.38 – 8.88 2011 – 2018 5,983 –
LIBOR plus 1.00% 2009 – 2011 4,440 –
Telephone subsidiaries – debentures 4.63 – 7.00 2009 – 2033 9,654 10,580
7.15 – 7.88 2012 – 2032 1,449 1,449
8.00 – 8.75 2010 – 2031 1,080 1,080
Other subsidiaries – debentures and other 6.84 – 8.75 2009 – 2028 2,200 2,450
Employee stock ownership plan loans – NYNEX debentures 9.55 2010 47 70
Capital lease obligations (average rate 6.2% and 6.8%) 390 312
Unamortized discount, net of premium (219) (97)
Total long-term debt, including current maturities 50,465 30,767
Less debt maturing within one year (3,506) (2,564)
Total long-term debt $ 46,959 $ 28,203