Time Warner Cable 2007 Annual Report Download - page 107

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8. DEBT AND MANDATORILY REDEEMABLE PREFERRED EQUITY
The Company’s debt and mandatorily redeemable preferred equity, as of December 31, 2007 and 2006,
includes the following components:
Face
Amount
Interest Rate at
December 31,
2007 Maturity 2007 2006
Outstanding Balance as of
December 31,
(in millions) (in millions)
Debt due within one year
(a)
............. $ — $ 4
Bank credit agreements and commercial
paper program
(b)(c)
. . . . . . . . . . . . . . . . . 5.391%
(d)
2011 5,256 11,077
TWE notes and debentures:
Senior debentures
(e)
. . . . . . . . . . . . . . . . $ 600 7.250%
(f)
2008 601 602
Senior notes. . . . . . . . . . . . . . . . . . . . . . 250 10.150%
(f)
2012 267 271
Senior notes. . . . . . . . . . . . . . . . . . . . . . 350 8.875%
(f)
2012 365 369
Senior debentures . . . . . . . . . . . . . . . . . . 1,000 8.375%
(f)
2023 1,040 1,043
Senior debentures . . . . . . . . . . . . . . . . . . 1,000 8.375%
(f)
2033 1,053 1,055
Total TWE notes and debentures
(g)
. . . . . . $ 3,200 3,326 3,340
TWC notes and debentures:
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500 5.400%
(h)
2012 1,498 —
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 5.850%
(h)
2017 1,996 —
Debentures . . . . . . . . . . . . . . . . . . . . . . 1,500 6.550%
(h)
2037 1,491 —
Total TWC notes and debentures . . . . . . . $ 5,000 4,985 —
Capital leases and other . . . . . . . . . . . . . . . 10 11
Total long-term debt. . . . . . . . . . . . . . . . . . 13,577 14,428
Total debt . . . . . . . . . . . . . . . . . . . . . . . . . 13,577 14,432
TW NY Preferred Membership Units . . . . . . $ 300 8.210% 2013 300 300
Total debt and TW NY Preferred
Membership Units . . . . . . . . . . . . . . . . . $ 13,877 $ 14,732
(a)
Debt due within one year primarily relates to capital lease obligations.
(b)
Unused capacity, which includes $232 million and $51 million in cash and equivalents as of December 31, 2007 and 2006, respectively,
equals $3.881 billion and $2.798 billion as of December 31, 2007 and 2006, respectively. Unused capacity as of December 31, 2007 and
2006 reflects a reduction of $135 million and $159 million, respectively, for outstanding letters of credit backed by the Cable Revolving
Facility, as defined below.
(c)
Outstanding balance amounts exclude an unamortized discount on commercial paper of $5 million and $17 million as of December 31,
2007 and 2006, respectively.
(d)
Rate represents a weighted-average interest rate.
(e)
As of December 31, 2007, the Company has classified $601 million of TWE debentures due within the next twelve months as long-term in
the consolidated balance sheet to reflect management’s intent and ability to refinance the obligation on a long-term basis through the
utilization of the unused committed capacity under the Cable Revolving Facility, if necessary.
(f)
Rate represents the stated rate at original issuance. The effective weighted-average interest rate for the TWE notes and debentures in the
aggregate is 7.64% at December 31, 2007.
(g)
Amounts include an unamortized fair value adjustment of $126 million and $140 million as of December 31, 2007 and 2006, respectively.
(h)
Rate represents the stated rate at original issuance. The effective weighted-average interest rate for the TWC notes and debentures in the
aggregate is 5.97% at December 31, 2007.
Debt Securities
On April 9, 2007, the Company issued $5.0 billion in aggregate principal amount of senior unsecured notes and
debentures (the “2007 Bond Offering”) consisting of $1.5 billion principal amount of 5.40% Notes due 2012 (the
“2012 Initial Notes”), $2.0 billion principal amount of 5.85% Notes due 2017 (the “2017 Initial Notes”) and
$1.5 billion principal amount of 6.55% Debentures due 2037 (the “2037 Initial Debentures” and, together with the
2012 Initial Notes and the 2017 Initial Notes, the “Initial Debt Securities”) pursuant to Rule 144A and Regulation S
102
TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)