Windstream 2014 Annual Report Download - page 170

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-54
4. Long-term Debt and Lease Obligations:
Windstream Holdings has no debt obligations. All debt, including the senior secured credit facility described below, have been
incurred by Windstream Corp. and its subsidiaries. Windstream Holdings is neither a guarantor of nor subject to the restrictive
covenants imposed by such debt.
Long-term debt was as follows at December 31:
(Millions) 2014 2013
Issued by Windstream Corp.:
Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 $ 344.3 $ 387.3
Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 255.0 277.5
Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 1,318.1 1,331.6
Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 584.1 590.0
Senior secured credit facility, Revolving line of credit – variable rates, due
December 17, 2015 625.0 590.0
Debentures and notes, without collateral:
2017 Notes – 7.875%, due November 1, 2017 1,100.0 1,100.0
2018 Notes – 8.125%, due September 1, 2018 400.0 400.0
2020 Notes – 7.750%, due October 15, 2020 700.0 700.0
2021 Notes – 7.750%, due October 1, 2021 950.0 950.0
2022 Notes – 7.500%, due June 1, 2022 500.0 500.0
2023 Notes – 7.500%, due April 1, 2023 600.0 600.0
2023 Notes – 6.375%, due August 1, 2023 700.0 700.0
Issued by subsidiaries of the Company:
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 100.0 100.0
Cinergy Communications Company – 6.58%, due January 1, 2022 1.9 2.0
Debentures and notes, without collateral:
PAETEC 2018 Notes – 9.875%, due December 1, 2018 450.0 450.0
Premium on long-term debt, net 23.3 28.8
8,651.7 8,707.2
Less current maturities (717.5)(85.0)
Total long-term debt $ 7,934.2 $ 8,622.2
Weighted average interest rate 6.5% 7.0%
Weighted maturity 5.1 years 6.1 years
Senior Secured Credit Facility
On December 6, 2013, Windstream Corp. incurred new borrowings of $590.0 million under Tranche B5 of the senior secured
credit facility due August 8, 2019. The proceeds along with available cash on hand were used to repay $592.5 million of borrowings,
plus accrued interest, that were outstanding under Tranche B3 of the senior secured credit facility, which were also due on August
8, 2019. Debt issuance costs associated with the Tranche B5 borrowings were $4.6 million which were charged to interest expense
in the fourth quarter of 2013 in accordance with debt modification accounting.
On January 23, 2013, Windstream Corp. incurred new borrowings of $1,345.0 million under Tranche B4 of the senior secured
credit facility due January 23, 2020; the proceeds of which were used to repay $19.5 million of Tranche A2 and $280.9 million
of Tranche B due in July 2013 and $1,042.9 million of Tranche B2 of the senior secured credit facility due in December 2015,
plus accrued interest. Debt issuance costs associated with the Tranche B4 borrowings were $11.9 million. Of this amount, $5.7
million was recorded in other assets in the consolidated balance sheet and is amortized into interest expense over the life of the
borrowings. The remaining $6.2 million of debt issuance costs were charged to interest expense in the first quarter of 2013 in
accordance with debt modification accounting.