Frontier Communications 2007 Annual Report Download - page 75

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
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, for the year
ended December 31, 2006.
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.
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 were used to partially finance the
Commonwealth acquisition.
In December 2006, we borrowed $150.0 million under a senior unsecured term loan agreement. The loan
matures in 2012 and bears interest based on an average prime rate or London Interbank Offered Rate or LIBOR
plus 1
3
⁄
8
%, at our election. Proceeds were used to partially finance the Commonwealth acquisition.
For the year ended December 31, 2005, we retired an aggregate principal amount of $36.4 million of debt,
including $30.0 million of EPPICS that were converted into our common stock. During the second quarter of
2005, we entered into two debt-for-debt exchanges of our debt securities. As a result, $50.0 million of our
7.625% notes due 2008 were exchanged for approximately $52.2 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 a non-cash pre-tax loss of approximately $3.2 million was recognized
in accordance with EITF No. 96-19, “Debtor’s Accounting for a Modification or Exchange of Debt Instruments,”
which is included in other income (loss), net.
We are in compliance with all of our debt and credit facility covenants.
Our principal payments for the next five years are as follows:
Principal
Payments($ in thousands)
2008 ........................................................... $ 2,448
2009 ........................................................... 2,507
2010 ........................................................... 5,886
2011 ........................................................... 1,252,517
2012 ........................................................... 179,017
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