Frontier Communications 2004 Annual Report Download - page 65

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-21
(11) Long-term Debt:
The activity in our long-term debt from December 31, 2003 to December 31, 2004 is summarized as follows:
* Interest rate includes amortization of debt issuance expenses, debt premiums or discounts. The interest rate for Rural Utilities Service Loan Contracts,
Senior Unsecured Debt, and Industrial Development Revenue Bonds represent a weighted average of multiple issuances.
** In accordance with FIN 46R, the Trust holding the EPPICS and the related Citizens Utilities Capital L.P. are now deconsolidated (see Note 16).
*** Includes purchases on the open market (see note 2).
On January 15, 2004, we repaid at maturity the remaining outstanding $80,955,000 of our 7.45% Debentures.
On January 15, 2004, we redeemed at 101% the remaining outstanding $12,300,000 of our Hawaii Special Purpose
Revenue Bonds, Series 1993A and Series 1993B.
On May 17, 2004, we repaid at maturity the remaining outstanding $5,975,000 of Electric Lightwave, LLC’s 6.05%
Notes. These Notes had been guaranteed by Citizens.
On July 15, 2004, we renegotiated and prepaid with $4,954,000 of cash the entire remaining $5,524,000 Electric
Lightwave capital lease obligation to a third party.
On July 30, 2004, we purchased $300,000,000 of the 6.75% notes that were a component of our equity units at
105.075% of par, plus accrued interest, at a premium of approximately $15,225,000 recorded in investment and other
income (loss), net.
During August and September 2004, we repurchased through a series of transactions an additional $108,230,000 of the
6.75% notes due 2006 at a weighted average price of 104.486% of par, plus accrued interest, at a premium of
approximately $4,855,000 recorded in investment and other income (loss), net.
On November 8, 2004, we issued an aggregate $700,000,000 principal amount of 6.25% senior notes due January 15,
2013 through a registered underwritten public offering. Proceeds from the sale were used to redeem our outstanding
$700,000,000 of 8.50% Notes due 2006, which is discussed below.
Twelve Months Ended
Interest Interest Rate* at
December 31, Rate December 31, December 31,
($ in thousands) 2003 Borrowings Payments*** Swap Reclassification 2004 2004
Rural Utilities Service Loan Contracts $ 30,010 $ - $ (902) $ - $ - $ 29,108 6.120%
Senior Unsecured Debt 4,167,123 700,000 (780,955) (6,135) 51,770 4,131,803 7.912%
EPPICS** (reclassified as a result of
adopting FIN 46R) -
-
-
- 63,765 63,765 5.000%
Equity Units 460,000 - (408,230) - (51,770) - -
ELI Notes 5,975 - (5,975) - - - -
ELI Capital Leases 10,061 - (5,640) - - 4,421 10.363%
Industrial Development Revenue Bonds 70,440 - (12,300) - - 58,140 5.559%
Other 22 - (19) - - 3 12.990%
TOTAL LONG TERM DEBT $ 4,743,631 $ 700,000 $ (1,214,021) $ (6,135) $ 63,765 $ 4,287,240
Less: Debt Discount - (13,859)
Less: Current Portion (88,002) (6,383)
Less: Equity Units (460,000) -
$ 4,195,629
$ 4,266,998