Comcast 2007 Annual Report Download - page 58

Note 8: Long-Term Debt
December 31 (in millions)
Weighted Average
Interest Rate as of
December 31, 2007 2007 2006
Commercial paper 5.67% $ 300 $ 199
Senior notes,
due 2007–2012 6.52% 6,895 7,495
Senior notes,
due 2013–2017 6.89% 11,429 10,400
Senior notes,
due 2018–2097 7.00% 11,435 9,047
Senior subordinated
notes, due 2012 10.63% 202 202
ZONES due 2029 2.00% 706 747
Other, including capital
lease obligations — 356 885
Total debt 7.05%(a) $ 31,323 $ 28,975
Less: current portion 1,495 983
Long-term debt $ 29,828 $ 27,992
(a) Includes the effects of our derivative financial instruments.
As of December 31, 2007, the maturities of our outstanding long-
term debt were as follows:
(in millions)
2008 $ 1,495
2009 $ 2,280
2010 $ 1,473
2011 $ 1,772
2012 $ 872
Thereafter $ 23,431
Debt Borrowings
During 2007, we issued approximately $3.7 billion aggregate princi-
pal amount of debt consisting of the following:
(in millions)
6.95% notes due 2037 $ 2,000
6.30% notes due 2017 1,000
6.625% notes due 2056 575
Other, net 138
$ 3,713
We used the net proceeds of these offerings for the repayment of
certain debt obligations, the funding of acquisitions, working capi-
tal and general corporate purposes, including the repayment of
commercial paper obligations.
Debt Redemptions and Repayments
During 2007, we redeemed or repaid approximately $1.4 billion
aggregate principal amount of our debt consisting of the following:
(in millions)
8.375% notes due 2007 $ 600
9.65% debt supporting trust preferred
securities due 2027 268
8.15% notes due 2032 186
Term loan due 2008 185
Other, net 162
$ 1,401
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 com-
mercial 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
As of December 31, 2007, we had a $5.0 billion revolving bank
credit facility due October 2010 (the “credit facility”) with a syndi-
cate of banks. In January 2008, we entered into an amended
and restated revolving bank credit facility which may be used for
general corporate purposes. This amendment increased the size
of our existing revolving bank credit facility from $5.0 billion to
$7.0 billion and extended the maturity of the loan commitment
from October 2010 to January 2013. For both our existing and our
amended and restated revolving bank credit facility, the base rate,
chosen at our option, is either the 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 un-
secured debt ratings. As of December 31, 2007, the interest rate
for borrowings under the credit facility was LIBOR plus 0.35%
based on our credit ratings.
Lines and Letters of Credit
As of December 31, 2007, we and certain of our subsidiaries had
unused lines of credit totaling $4.370 billion under various credit
facilities and unused irrevocable standby letters of credit totaling
$368 million to cover potential fundings under various agreements.
Comcast 2007 Annual Report on Form 10-K 56