Frontier Communications 2008 Annual Report Download - page 73

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(11) Long-Term Debt:
The activity in our long-term debt from December 31, 2007 to December 31, 2008 is summarized as
follows:
($ in thousands)
December 31,
2007 Payments
New
Borrowings
Interest
Rate
Swap
Conversion to
Common
Stock
Reclassification
of Related
Party Debt
December 31,
2008
Interest
Rate*at
December 31,
2008
Year Ended December 31, 2008
Rural Utilities Service
Loan Contracts . . . . . . . . . . $ 17,555 $ (948) $ — $ — $ — $ — $ 16,607 6.07%
Senior Unsecured Debt . . . . 4,715,013 (138,107) 135,000 (7,909) (1,666) — 4,702,331 7.54%
EPPICS (see Note 15) . . . . . 14,521 (3,425) — — (590) (10,506) —
Industrial Development
Revenue Bonds . . . . . . . . . 13,550 — — — — — 13,550 6.31%
TOTAL LONG-TERM
DEBT . . . . . . . . . . . . . . . . . . $4,760,639 $(142,480) $ 135,000 $ (7,909) $ (2,256) $ (10,506) $4,732,488 7.54%
Less: Debt Discount . . . . . . . (21,294) (6,946)
Less: Current Portion . . . . . . (2,448) (3,857)
$4,736,897 $4,721,685
* Interest rate includes amortization of debt issuance costs, debt premiums or discounts, and deferred gain on
interest rate swap terminations. The interest rates for Rural Utilities Service Loan Contracts, Senior
Unsecured Debt, and Industrial Development Revenue Bonds represent a weighted average of multiple
issuances.
Additional information regarding our Senior Unsecured Debt at December 31:
($ in thousands)
Principal
Outstanding
Interest
Rate
Principal
Outstanding
Interest
Rate
2008 2007
Senior Notes:
Due 5/15/2011. . .................... $ 921,276 9.250% $1,050,000 9.250%
Due 10/24/2011 .................... 200,000 6.270% 200,000 6.270%
Due 12/31/2012 .................... 147,000 2.448% (Variable) 148,500 6.750% (Variable)
Due 1/15/2013. . .................... 700,000 6.250% 700,000 6.250%
Due 12/31/2013 .................... 133,988 2.250% (Variable) —
Due 3/15/2015. . .................... 300,000 6.625% 300,000 6.625%
Due 3/15/2019. . .................... 450,000 7.125% 450,000 7.125%
Due 1/15/2027. . .................... 400,000 7.875% 400,000 7.875%
Due 8/15/2031. . .................... 945,325 9.000% 945,325 9.000%
4,197,589 4,193,825
Debentures due 2025–2046 .......... 468,742 7.137% 468,742 7.137%
Subsidiary Senior
Notes due 12/1/2012 ................ 36,000 8.050% 36,000 8.050%
CTE Convertible Notes due
7/23/2023 ........................ — 8,537 3.250%
Fair value of interest rate swaps . . . . . — 7,909
Total ........................ $4,702,331 $4,715,013
During 2008, we retired an aggregate principal amount of $144.7 million of debt, consisting of $128.7
million of 9.25% Senior Notes due 2011, $12.0 million of other senior unsecured debt and rural utilities service
loan contracts, and $4.0 million of 5% Company Obligated Mandatorily Redeemable Convertible Preferred
Securities due 2036 (EPPICS).
F-22
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements