Verizon Wireless 2014 Annual Report Download - page 56

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
Long-Term Debt
Outstanding long-term debt obligations are as follows:
(dollars in millions)
At December 31, Interest Rates % Maturities 2014 2013
Verizon Communications - notes payable and other 0.30 – 3.85 2015 – 2042 $ 27,617 $ 20,416
4.15 – 5.50 2018 – 2054 40,701 20,226
5.85 – 6.90 2018 – 2054 24,341 31,965
7.35 – 8.95 2018 – 2039 2,264 5,023
Floating 2015 – 2025 14,600 5,500
Verizon Wireless - notes payable and other 8.75 – 8.88 2015 – 2018 676 3,931
Verizon Wireless - Alltel assumed notes 6.80 – 7.88 2029 – 2032 686 1,300
Telephone subsidiaries - debentures 5.13 – 6.86 2027 – 2033 1,075 1,075
7.38 – 7.88 2022 – 2032 1,099 1,099
8.00 – 8.75 2019 – 2031 880 880
Other subsidiaries - debentures and other 6.84 – 8.75 2018 – 2028 1,432 1,700
Capital lease obligations (average rate of 4.0% and 8.1% in 2014 and 2013, respectively) 516 293
Unamortized discount, net of premium (2,954) (264)
Total long-term debt, including current maturities 112,933 93,144
Less long-term debt maturing within one year 2,397 3,486
Total long-term debt $ 110,536 $ 89,658
following: $1.5 billion aggregate principal amount of 3.00% Notes due
2021, $2.5 billion aggregate principal amount of 3.50% Notes due 2024,
and $2.5 billion aggregate principal amount of 4.40% Notes due 2034.
The net proceeds from the issuance was used to redeem (i) in whole the
following series of outstanding notes which were called for early redemp-
tion in November 2014 (collectively, November Early Debt Redemption):
$0.5 billion aggregate principal amount of Verizon Communications
4.90% Notes due 2015 at 103.7% of the principal amount of such notes,
$0.6 billion aggregate principal amount of Verizon Communications
5.55% Notes due 2016 at 106.3% of the principal amount of such notes,
$1.3 billion aggregate principal amount of Verizon Communications
3.00% Notes due 2016 at 103.4% of the principal amount of such notes,
$0.4 billion aggregate principal amount of Verizon Communications
5.50% Notes due 2017 at 110.5% of the principal amount of such notes,
$0.7 billion aggregate principal amount of Verizon Communications
8.75% Notes due 2018 at 125.2% of the principal amount of such notes,
$0.1 billion aggregate principal amount of Alltel Corporation 7.00%
Debentures due 2016 at 108.7% of the principal amount of such notes
and $0.4 billion aggregate principal amount of Cellco Partnership and
Verizon Wireless Capital LLC 8.50% Notes due 2018 at 124.5% of the
principal amount of such notes; and (ii) $1.0 billion aggregate principal
amount of Verizon Communications 2.50% Notes due 2016 at 103.0% of
the principal amount of such notes. Proceeds not used for the redemp-
tion of these notes will be used for general corporate purposes. Any
accrued and unpaid interest was paid to the date of redemption (see
“Early Debt Redemption and Other Costs”).
During December 2014, we issued €1.4 billion aggregate principal
amount of 1.625% Notes due 2024 and €1.0 billion aggregate principal
amount of 2.625% Notes due 2031. The issuance of these Notes resulted
in cash proceeds of approximately $3.0 billion, net of discounts and
issuance costs and after reimbursement of certain expenses. The net pro-
ceeds were used for general corporate purposes.
Verizon Notes (Non-Cash Transaction)
During February 2014, in connection with the Wireless Transaction, we
issued $5.0 billion aggregate principal amount of oating rate notes. The
Verizon Notes were issued in two separate series, with $2.5 billion due
February 21, 2022 and $2.5 billion due February 21, 2025. The Verizon
Notes bear interest at a oating rate, which will be reset quarterly, with
2014
During February 2014, we issued €1.75 billion aggregate principal amount
of 2.375% Notes due 2022, €1.25 billion aggregate principal amount of
3.25% Notes due 2026 and £0.85 billion aggregate principal amount of
4.75% Notes due 2034. The issuance of these Notes resulted in cash pro-
ceeds of approximately $5.4 billion, net of discounts and issuance costs.
The net proceeds were used, in part, to nance the Wireless Transaction.
Net proceeds not used to nance the Wireless Transaction were used for
general corporate purposes. Also, during February 2014, we issued $0.5
billion aggregate principal amount of 5.90% Notes due 2054 resulting in
cash proceeds of approximately $0.5 billion, net of discounts and issu-
ance costs. The net proceeds were used for general corporate purposes.
During March 2014, we issued $4.5 billion aggregate principal amount of
xed and oating rate notes resulting in cash proceeds of approximately
$4.5 billion, net of discounts and issuance costs. The issuances consisted
of the following: $0.5 billion aggregate principal amount Floating Rate
Notes due 2019 that bear interest at a rate equal to three-month LIBOR
plus 0.77% which rate will be reset quarterly, $0.5 billion aggregate prin-
cipal amount of 2.55% Notes due 2019, $1.0 billion aggregate principal
amount of 3.45% Notes due 2021, $1.25 billion aggregate principal
amount of 4.15% Notes due 2024 and $1.25 billion aggregate principal
amount of 5.05% Notes due 2034. During March 2014, the net proceeds
were used to purchase notes in the Tender Oer described below.
Also, during March 2014, $1.0 billion of LIBOR plus 0.61% Verizon
Communications Notes and $1.5 billion of 1.95% Verizon Communications
Notes matured and were repaid.
During September 2014, we issued $0.9 billion aggregate principal
amount of 4.8% Notes due 2044. The issuance of these Notes resulted
in cash proceeds of approximately $0.9 billion, net of discounts and issu-
ance costs. The net proceeds were used for general corporate purposes.
Also, during September 2014, we redeemed $0.8 billion aggregate prin-
cipal amount of Verizon 1.25% Notes due November 2014 and recorded
an immaterial amount of early debt redemption costs.
During October 2014, we issued $6.5 billion aggregate principal amount
of xed rate notes. The issuance of these notes resulted in cash proceeds
of approximately $6.4 billion, net of discounts and issuance costs and
after reimbursement of certain expenses. The issuance consisted of the