Windstream 2010 Annual Report Download - page 154

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Debt:
Long-term debt was as follows at December 31:
(Millions) 2010 2009
Issued by Windstream Corporation:
Senior secured credit facility, Tranche A – variable rates, due July 17,
2011 (a) $ 100.9 $ 114.4
Senior secured credit facility, Tranche A2 – variable rates, due July 17,
2013 (a) 182.3 168.9
Senior secured credit facility, Tranche B – variable rates, due July 17, 2013 286.8 289.8
Senior secured credit facility, Tranche B2 – variable rates, due December 17,
2015 1,064.5 1,075.3
Senior secured credit facility, Revolving line of credit – variable rates, due
July 17, 2013 (b) 150.0 -
Debentures and notes, without collateral:
2013 Notes – 8.125%, due August 1, 2013 800.0 800.0
2016 Notes – 8.625%, due August 1, 2016 (c) 1,746.0 1,746.0
2017 Notes – 7.875%, due November 1, 2017 1,100.0 1,100.0
2018 Notes – 8.125%, due September 1, 2018 (c) (d) 400.0 -
2019 Notes – 7.000%, due March 15, 2019 (c) 500.0 500.0
2020 Notes – 7.750%, due October 15, 2020 (c) (e) 500.0 -
Issued by subsidiaries of the Company:
Valor Telecommunications Enterprises LLC and Valor Telecommunications
Finance Corp. – 7.75%, due February 15, 2015 (c) (f) 400.0 400.0
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (c) (f) 100.0 100.0
Cinergy Communications Company – 6.58%, due January 1, 2022 2.3 -
Debentures and notes, without collateral:
Windstream Georgia Communications LLC – 6.50%, due November 15,
2013 30.0 40.0
Discount on long-term debt, net of premiums (37.0) (39.2)
7,325.8 6,295.2
Less current maturities (139.2) (23.8)
Total long-term debt $ 7,186.6 $ 6,271.4
Weighted average interest rate 7.8% 7.7%
Weighted maturity 5.7 years 6.3 years
(a) Effective October 18, 2010, the Company extended the maturity of an additional $13.5 million of the
Tranche A of the senior secured credit facilities outstanding to Tranche A2, which will be due July 17, 2013.
(b) The Company borrowed $665.0 million under the revolving line of credit in its senior secured credit facility
and later repaid $515.0 million during 2010. On November 22, 2010, Windstream increased the capacity
under its senior secured revolving credit facility from $500.0 million to $750.0 million. At December 31,
2010, the amount available for borrowing under the revolving line of credit was $589.7 million. Letters of
credit are deducted in determining the total amount available for borrowing under the revolving line of credit.
Accordingly, the total amount outstanding under the letters of credit and the indebtedness incurred under the
revolving line of credit may not exceed $750.0 million. The variable interest rate on our revolving line of
credit ranged from 1.51 percent to 2.61 percent, and the weighted average rate on amounts outstanding was
2.45 percent during 2010, as compared to variable interest rates during 2009 which ranged from 1.59 percent
to 2.45 percent with a weighted average rate on amounts outstanding of 1.77 percent. The weighted average
rate increase is primarily due to the 100 basis point interest rate increase to extend the revolving line of credit
in its senior secured credit facility during the fourth quarter of 2009. Effective January 26, 2011, all $750.0
million available under the revolving line of credit will expire July 17, 2013.
(c) Certain of the Company’s debentures and notes are callable by the Company at various premiums on early
redemption.
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