Windstream 2008 Annual Report Download - page 148

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Debt:
Long-term debt was as follows at December 31:
(Millions) 2008 2007
Issued by Windstream Corporation:
Senior secured credit facility, Tranche A – variable rates, due July 17, 2011 (a) $ 283.3 $ 283.3
Senior secured credit facility, Tranche B – variable rates, due July 17, 2013 (b) 1,379.0 1,393.0
Senior secured credit facility, Revolving line of credit – variable rates, due
July 17, 2011 (c) 150.0 100.0
Debentures and notes, without collateral:
2016 Notes – 8.625%, due August 1, 2016 (e) 1,746.0 1,746.0
2013 Notes – 8.125%, due August 1, 2013 (e) 800.0 800.0
2019 Notes – 7.000%, due March 15, 2019 (b) (e) 500.0 500.0
Issued by subsidiaries of the Company:
Valor Telecommunications Enterprises LLC and Valor Telecommunications
Finance Corp. – 7.75%, due February 15, 2015 (d) (e) 400.0 400.0
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (d) (e) 100.0 100.0
Debentures and notes, without collateral:
Windstream Georgia Communications LLC – 6.50%, due November 15,
2013 50.0 60.0
Teleview, LLC – 7.00%, due January 2, 2010 and May 2, 2010 0.3 0.6
Discount on long-term debt, net of premiums (26.1) (27.4)
5,382.5 5,355.5
Less current maturities (24.3) (24.3)
Total long-term debt $ 5,358.2 $ 5,331.2
Weighted average interest rate 7.7% 8.0%
Weighted maturity 6.3 years 7.4 years
(a) Pursuant to the sale of its publishing business in November 2007, the Company retired $210.5 million of
Tranche A senior secured debt under its credit facility in a debt-for-debt exchange (Note 3).
(b) In February 2007, Windstream issued $500.0 million aggregate principal amount of senior notes due 2019,
with an interest rate of 7.0 percent, and used the net proceeds of the offering to repay $500.0 million of
amounts outstanding under the term loan portion of its senior secured credit facilities (“the refinancing
transaction”). Additionally, Windstream received the consent of lenders to an amendment and restatement of
its $2.9 billion senior secured credit facilities. Windstream amended and restated its senior secured credit
facilities to, among other things, reduce the interest payable under Tranche B of the term loan portion of the
facilities; modify the pre-payment provision; and modify certain covenants to permit the consummation of
the split off of its directory publishing business.
(c) During 2008, the Company incurred net borrowings of $50 million under the revolving line of credit in its
senior secured credit facilities. The revolving line of credit’s variable interest rates are based on LIBOR plus
125 basis points and ranged from 1.73 percent to 6.10 percent, with a weighted average rate on amounts
outstanding during 2008 of 4.09 percent, as compared to variable interest rates during 2007 which ranged
from 5.92 percent to 6.76 percent with a weighted average rate on amounts outstanding of 6.34 percent.
(d) The Company’s collateralized Valor debt is equally and ratably secured with debt under the senior secured
credit facilities. Debt held by Windstream Holdings of the Midwest, Inc., a subsidiary of the Company, is
secured solely by the assets of the subsidiary.
(e) Certain of the Company’s debentures and notes are callable by the Company at various premiums on early
redemption.
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