Frontier Communications 2009 Annual Report Download - page 80

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Additional information regarding our Senior Unsecured Debt at December 31:
($ in thousands)
Principal
Outstanding
Interest
Rate
Principal
Outstanding
Interest
Rate
2009 2008
Senior Notes:
Due 5/15/2011. . .................... $ 76,089 9.250% $ 921,276 9.250%
Due 10/24/2011 .................... 200,000 6.270% 200,000 6.270%
Due 12/31/2012 .................... 145,500 1.625% (Variable) 147,000 2.448% (Variable)
Due 1/15/2013. . .................... 580,724 6.250% 700,000 6.250%
Due 12/31/2013 .................... 132,638 2.000% (Variable) 133,988 2.250% (Variable)
Due 5/1/2014. . . .................... 600,000 8.250% —
Due 3/15/2015. . .................... 300,000 6.625% 300,000 6.625%
Due 10/1/2018. . .................... 600,000 8.125% —
Due 3/15/2019. . .................... 434,000 7.125% 450,000 7.125%
Due 1/15/2027. . .................... 345,858 7.875% 400,000 7.875%
Due 8/15/2031. . .................... 945,325 9.000% 945,325 9.000%
4,360,134 4,197,589
Debentures:
Due 11/1/2025. . .................... 138,000 7.000% 138,000 7.000%
Due 8/15/2026. . .................... 1,739 6.800% 11,614 6.800%
Due 10/1/2034. . .................... 628 7.680% 628 7.680%
Due 7/1/2035. . . .................... 125,000 7.450% 125,000 7.450%
Due 10/1/2046. . .................... 193,500 7.050% 193,500 7.050%
458,867 468,742
Subsidiary Senior
Notes due 12/1/2012 ................ 36,000 8.050% 36,000 8.050%
Total ........................ $4,855,001 7.86% $4,702,331 7.54%
During 2009, we retired an aggregate principal amount of $1,048.3 million of debt, consisting of $1,047.3
million of senior unsecured debt, as described in more detail below, and $1.0 million of rural utilities service
loan contracts.
On October 1, 2009, we completed a registered debt offering of $600.0 million aggregate principal amount
of 8.125% senior unsecured notes due 2018. The issue price was 98.441% of the principal amount of the notes,
and we received net proceeds of approximately $578.7 million from the offering after deducting underwriting
discounts and offering expenses. We used the net proceeds from the offering, together with cash on hand, to
finance a cash tender offer for up to $700.0 million to purchase our outstanding 9.250% Senior Notes due 2011
(the 2011 Notes) and our outstanding 6.250% Senior Notes due 2013 (the 2013 Notes), as described below.
On April 9, 2009, we completed a registered offering of $600.0 million aggregate principal amount of
8.25% senior unsecured notes due 2014. The issue price was 91.805% of the principal amount of the notes. We
received net proceeds of approximately $538.8 million from the offering after deducting underwriting discounts
and offering expenses.
The Company accepted for purchase, in accordance with the terms of the tender offer referred to above,
approximately $564.4 million aggregate principal amount of the 2011 Notes and approximately $83.4 million
of the 2013 Notes tendered during the tender period, which expired on October 16, 2009. The aggregate
consideration for these debt repurchases was $701.6 million, which was financed with the proceeds of the debt
offering described above and cash on hand. The repurchases resulted in a loss on the early retirement of debt of
$53.7 million, which we recognized in the fourth quarter of 2009.
In addition to the debt tender offer, we used $388.9 million of the debt offering proceeds in 2009 to
repurchase $396.7 million principal amount of debt, consisting of $280.8 million of the 2011 Notes, $54.1
million of our 7.875% Senior Notes due January 15, 2027, $35.9 million of the 2013 Notes, $16.0 million of
F-18
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements