Verizon Wireless 2012 Annual Report Download - page 68

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Telephone and Other Subsidiary Debt
2012
During January 2012, $1.0 billion of 5.875% Verizon New Jersey Inc.
Debentures matured and were repaid. During December 2012, we
redeemed the $1.0 billion of 4.625% Verizon Virginia LLC Debentures,
Series A, due March 2013 at a redemption price of 101.1% of the principal
amount of the debentures. Any accrued and unpaid interest was paid to
the date of redemption.
In addition, during 2012, various Telephone and Other Subsidiary
Debentures totaling approximately $0.2 billion were repaid and any
accrued and unpaid interest was paid to the date of payment.
2011
During April 2011, we redeemed the $1.0 billion of 5.65% Verizon
Pennsylvania Inc. Debentures due November 15, 2011 at a redemption
price of 102.9% of the principal amount of the debentures; and the $1.0
billion of 6.50% Verizon New England Inc. Debentures due September
15, 2011 at a redemption price of 102.3% of the principal amount of the
debentures. Any accrued and unpaid interest was paid through the date
of redemption.
During November 2011, we redeemed the following debentures: $0.4
billion of 6.125% Verizon Florida Inc. Debentures due January 2013 at a
redemption price of 106.3% of the principal amount of the debentures;
$0.5 billion of 6.125% Verizon Maryland Inc. Debentures due March 2012
at a redemption price of 101.5% of the principal amount of the deben-
tures; and $1.0 billion of 6.875% Verizon New York Inc. Debentures due
April 2012 at a redemption price of 102.2% of the principal amount of
the debentures. Any accrued and unpaid interest was paid through the
date of redemption.
Early Debt Redemption and Other Costs
During November 2012, we recorded debt redemption costs of $0.8 bil-
lion in connection with the purchase of $0.9 billion of the $1.25 billion of
8.95% Verizon Communications Notes due 2039 in a cash tender offer.
During December 2012, we recorded debt redemption costs of $0.3 bil-
lion in connection with the early redemption of $0.7 billion of the $2.0
billion of 8.75% Verizon Communications Notes due 2018, $1.0 billion of
4.625% Verizon Virginia LLC Debentures, Series A, due March 2013 and
$0.75 billion of 4.35% Verizon Communications Notes due February 2013,
as well as $0.3 billion of other costs.
During November 2011, we recorded debt redemption costs of $0.1 bil-
lion in connection with the early redemption of $1.0 billion of 7.375%
Verizon Communications Notes due September 2012, $0.6 billion of
6.875% Verizon Communications Notes due June 2012, $0.4 billion of
6.125% Verizon Florida Inc. Debentures due January 2013, $0.5 billion of
6.125% Verizon Maryland Inc. Debentures due March 2012 and $1.0 bil-
lion of 6.875% Verizon New York Inc. Debentures due April 2012.
Guarantees
We guarantee the debentures and first mortgage bonds of our oper-
ating telephone company subsidiaries. As of December 31, 2012, $4.3
billion principal amount of these obligations remain outstanding. Each
guarantee will remain in place for the life of the obligation unless termi-
nated pursuant to its terms, including the operating telephone company
no longer being a wholly-owned subsidiary of Verizon.
We also guarantee the debt obligations of GTE Corporation that were
issued and outstanding prior to July 1, 2003. As of December 31, 2012,
$1.7 billion principal amount of these obligations remain outstanding.
Debt Covenants
We and our consolidated subsidiaries are in compliance with all debt
covenants.
Maturities of Long-Term Debt
Maturities of long-term debt outstanding at December 31, 2012 are as
follows:
Years (dollars in millions)
2013 $ 3,869
2014 6,809
2015 2,188
2016 4,146
2017 1,342
Thereafter 33,133