Frontier Communications 2006 Annual Report Download - page 71

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Additional information regarding our Senior Unsecured Debt at December 31:
2006 2005
($ in thousands)
Principal
Outstanding
Interest
Rate
Principal
Outstanding
Interest
Rate
Senior Notes:
Due 8/17/2006 ......... $ — — $ 51,770 6.758%
Due 8/15/2008 ......... 495,240 7.625% 699,990 7.625%
Due 5/15/2011 ......... 1,050,000 9.250% 1,050,000 9.250%
Due 10/24/2011 ........ 200,000 6.270% 200,000 6.270%
Due 12/31/2012 ........ 150,000 6.75%(variable) — —
Due 1/15/2013 ......... 700,000 6.250% 700,000 6.250%
Due 1/15/2027 ......... 400,000 7.875% — —
Due 8/15/2031 ......... 945,325 9.000% 748,006 9.000%
3,940,565 3,449,766
Debentures due 2025 - 2046 . . 468,742 7.136% 643,742 7.263%
Subsidiary Senior
Notes due 12/1/2012 .... 36,000 8.050% 36,000 8.050%
Fair value of interest rate
swaps .............. (10,289) (8,727)
Total .............. $ 4,435,018 $ 4,120,781
For the year ended December 31, 2006, we retired an aggregate principal amount of $251.0 million of debt,
including $15.9 million of 5% Company Obligated Mandatorily Redeemable Convertible Preferred Securities
due 2006 (EPPICS) that were converted into our common stock.
During the first quarter of 2006, we entered into two debt-for-debt exchanges of our debt securities. As a
result, $47.5 million of our 7.625% notes due 2008 were exchanged for approximately $47.4 million of our
9.00% notes due 2031. During the fourth quarter of 2006, we entered into four debt-for-debt exchanges and
exchanged $157.3 million of our 7.625% notes due 2008 for $149.9 million of our 9.00% notes due 2031. The
9.00% notes are callable on the same general terms and conditions as the 7.625% notes exchanged. No cash was
exchanged in these transactions. However, with respect to the first quarter debt exchanges, a non-cash pre-tax
loss of approximately $2.4 million was recognized in accordance with EITF No. 96-19, “Debtor’s Accounting for
a Modification or Exchange of Debt Instruments,” which is included in other income (loss), net.
On June 1, 2006, we retired at par our entire $175.0 million principal amount of 7.60% Debentures due
June 1, 2006.
On June 14, 2006, we repurchased $22.7 million of our 6.75% Senior Notes due August 17, 2006 at a price
of 100.181% of par.
On August 17, 2006, we retired at par the $29.1 million remaining balance of the 6.75% Senior Notes.
In February 2006, our Board of Directors authorized us to repurchase up to $150.0 million of our
outstanding debt over the following twelve-month period. These repurchases may require us to pay premiums,
which would result in pre-tax losses to be recorded in investment and other income (loss). Through December 31,
2006, we have not made any purchases pursuant to this authorization.
On December 22, 2006, we issued in a private placement, an aggregate $400.0 million principal amount of
7.875% Senior Notes due January 15, 2027. Proceeds from the sale are expected to be used to partially finance
our acquisition of Commonwealth Telephone or if the acquisition is not completed, to purchase, redeem or
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