Windstream 2012 Annual Report Download - page 190

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-92
16. Discontinued Operations:
On June 15, 2012, we completed the sale of the energy business acquired as part of PAETEC, which sells electricity to business
and residential customers, primarily in certain geographic regions in New York state, as a competitive electricity supplier.
The following table summarizes the results of the energy business which have been separately presented as discontinued
operations in the accompanying consolidated statements of income for the years ended December 31:
(Millions) 2012 2011
Revenues and sales $ 12.9 $ 2.6
Operating income from discontinued operations (0.5)(0.1)
Other income (0.2)—
Net loss from discontinued operations $ (0.7)$ (0.1)
17. Subsequent Events:
On February 6, 2013, we declared a dividend of 25 cents per share on our common stock, which is payable on April 15, 2013 to
shareholders of record on March 29, 2013.
On January 8, 2013, we announced a tender offer to purchase for cash any and all of the outstanding $650.0 million aggregate
principal amount of PAETEC 2017 Notes. As of February 6, 2013, approximately $588.5 million outstanding of the PAETEC
2017 Notes had been tendered. We paid total consideration of $1,050 per 1,000 aggregate principal amount of PAETEC 2017
Notes, plus accrued and unpaid interest from the last interest payment date to, but not including, the final settlement date.
Following the completion of the tender offer, approximately $61.5 million aggregate principal amount of PAETEC 2017 Notes
remain outstanding. Redemption of the amount outstanding is expected to occur on February 25, 2013.
On January 23, 2013, we completed the private placement of $700.0 million in aggregate principal amount of 6.375 percent
senior unsecured notes due August 1, 2023, at an issue price at par to yield 6.375 percent. Proceeds from the private placement,
together with available cash, if required, were used to pay the consideration for the tender offer and consent solicitation
announced by Windstream on January 8, 2013 to purchase for cash any and all of the outstanding PAETEC 2017 Notes,
together with related fees and expenses. The remaining net proceeds of the notes offering, together with available cash, will be
used to redeem all of the remaining outstanding PAETEC Notes.
On January 23, 2013, we announced that we had amended our existing senior secured credit facilities to, among other things,
provide for the incurrence of $1,345.0 million of additional term loans, due January 23, 2020, the proceeds of which were used
to repay $19.5 million of the credit facility Tranche A2 and $280.9 million Tranche B1 term loans due in July 2013 and
$1,042.9 million of the credit facility Tranche B2 term loans due in December 2015, plus accrued interest.
18. Quarterly Financial Information – (Unaudited):
For the Year Ended December 31, 2012
(Millions, except per share amounts) Total 4th 3rd (a) 2nd (a) 1st (a)
Revenues and sales $ 6,156.3 $ 1,538.2 $ 1,545.4 $ 1,534.4 $ 1,538.3
Operating income $ 887.5 $ 171.7 $ 236.6 $ 233.4 $ 245.8
Net income $ 168.0 $ 10.1 $ 46.6 $ 50.9 $ 60.4
Basic and diluted earnings per share:
Net income $.28 $.02 $.08 $.09 $.10