Windstream 2013 Annual Report Download - page 194

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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5. Long-term Debt and Capital Lease Obligations, Continued:
In addition, certain of Windstream Corp.'s debt agreements contain various covenants and restrictions specific to the subsidiary
that is the legal counterparty to the agreement. Under Windstream Corp.'s long-term debt agreements, acceleration of principal
payments would occur upon payment default, violation of debt covenants not cured within 30 days, a change in control
including a person or group obtaining 50 percent or more of Windstream Corp.'s outstanding voting stock, or breach of certain
other conditions set forth in the borrowing agreements. Windstream Corp. and its subsidiaries were in compliance with these
covenants as of December 31, 2013.
Maturities for long-term debt outstanding as of December 31, 2013, excluding unamortized net premium, were as follows for
the years ended December 31:
Year (Millions)
2014 $ 85.0
2015 682.5
2016 350.7
2017 1,314.5
2018 869.5
Thereafter 5,376.2
Total $ 8,678.4
(Loss) Gain on Extinguishment of Debt
During the third quarter of 2013, Windstream Corp. retired all $500.0 million of the outstanding 2019 Notes using proceeds
from the private placement of the 2021 Notes. During the first quarter of 2013, Windstream Corp. also retired all $650.0
million of the outstanding PAETEC 2017 Notes. The PAETEC 2017 Notes were repurchased using proceeds from the issuance
of the 2023 Notes. Windstream Corp. also amended its senior secured credit facility including issuance of Tranche B4, the
proceeds of which were used to repay Tranche A2, Tranche B and Tranche B2 during the first quarter of 2013. The retirements
and a portion of the credit facility amendment were accounted for under the extinguishment method of accounting, and as a
result, Windstream Corp. recognized losses on extinguishment of debt of $28.5 million during 2013.
During the first quarter of 2012, Windstream Corp. retired all $300.0 million of the outstanding PAETEC 2015 Notes. The
PAETEC 2015 Notes were purchased using borrowings under Windstream Corp.'s revolving line of credit. The retirement was
accounted for under the extinguishment method, and as a result Windstream Corp. recognized a gain on extinguishment of debt
of $1.9 million during the twelve months ended December 31, 2012.
During 2011, Windstream Corp. purchased all $1,746.0 million of the 2016 Notes and all $400.0 million of the Valor Notes.
These transactions were financed with proceeds from the issuance of the 2020 Notes, the 2021 Notes, the 2023 Notes and
borrowings from Windstream Corp.'s revolving line of credit. As a result of these transactions, Windstream Corp. was able to
extend the existing debt maturities and lower interest rates. The retirements were accounted for under the extinguishment
method, and as a result Windstream Corp. recognized a loss on extinguishment of debt of $136.1 million during 2011.