Comcast 2006 Annual Report Download - page 57

55 Comcast 2006 Annual Report Notes to Consolidated Financial Statements
Note 8: Long-Term Debt
Weighted Average
Interest Rate as of
December 31 (in millions) December 31, 2006 2006 2005
Commercial paper 5.42% $ 199 $ 549
Term loan, due 2008 5.85% 185 —
Senior notes,
due 2006 – 2097 6.93% 26,942 20,993
Senior subordinated notes,
due 2006 – 2012 10.63% 202 349
ZONES due 2029 2.00% 747 752
Debt supporting Trust
Preferred Securities,
due 2027 9.65% 283 284
Exchangeable notes,
due 2007 5.77% 49 46
Other, including capital
lease obligations — 368 398
Total debt 28,975 23,371
Less: current portion 983 1,689
Long-term debt $ 27,992 $ 21,682
As of December 31, 2006, maturities of long-term debt outstand-
ing were as follows:
(in millions) Maturities
2007 $ 983
2008 1,668
2009 2,249
2010 1,320
2011 1,767
Thereafter 20,988
Guarantee Structures
Comcast Corporation (our parent corporation) and a number of our
wholly owned subsidiaries that hold substantially all of our cable
assets have unconditionally guaranteed each other’s debt secu-
rities and indebtedness for borrowed money, including amounts
outstanding under our $5.0 billion revolving bank credit facility. As
of December 31, 2006, $27.141 billion of our debt was included in
this cross-guarantee structure.
Comcast Holdings Corporation (“Comcast Holdings”), our wholly
owned subsidiary, is not part of the cross-guarantee structure.
However, Comcast Corporation has unconditionally guaranteed
Comcast Holdings’ ZONES due October 2029 and its 10
5⁄8%
Senior Subordinated Debentures due 2012, which totaled $683
million as of December 31, 2006. The Comcast Holdings guaran-
tee is subordinate to the guarantees under the cross-guarantee
structure.
Debt Borrowings
During 2006, we issued $7.485 billion aggregate principal amount
of senior notes as follows:
(in millions) Principal
Floating-rate notes (LIBOR + 0.3%), due 2009 $ 1,250
5.90% Senior notes, due 2016 1,000
6.50% Senior notes, due 2017 1,000
5.875% Senior notes, due 2018 900
6.45% Senior notes, due 2037 1,865
7.00% Senior notes, due 2055 1,470
$ 7,485
We used the net proceeds of these offerings for working capi-
tal and general corporate purposes, including the repayment of
commercial paper obligations (see below), the Adelphia and Time
Warner transactions, the refinancing of debt associated with the
Houston Asset Pool, and the acquisition of the remaining portion
of E! Entertainment Television that we did not already own (see
Note 5).
Debt Repayments
During 2006, we repaid $1.607 billion aggregate principal amount
of senior notes and senior subordinated notes at their scheduled
maturity dates as follows:
(in millions) Principal
6.375% Senior notes $ 500
6.875% Senior notes 388
8.3% Senior notes 600
10.5% Senior subordinated notes 119
$ 1,607
During 2006, we also repaid $350 million outstanding under our
commercial paper program and $82 million of other debt.
Commercial Paper
Our commercial paper program provides a lower cost borrowing
source of liquidity to fund our short-term working capital require-
ments. The program allows for a maximum of $2.25 billion of
commercial paper to be issued at any one time. Our revolving bank
credit facility supports this program. Amounts outstanding under
the program are classified as long-term in our consolidated bal-
ance sheet because we have both the ability and the intent to
refinance these obligations, if necessary, on a long-term basis with
amounts available under our revolving bank credit facility.
Revolving Bank Credit Facility
We have a $5.0 billion revolving bank credit facility due Octo-
ber 2010 (the “credit facility”) with a syndicate of banks. The base
rate, chosen at our option, is either London Interbank Offered Rate
(“LIBOR”) or the greater of the prime rate or the Federal Funds rate
plus 0.5%. The borrowing margin is based on our senior unse-
cured debt ratings. As of December 31, 2006, the interest rate for