Long-Term Debt and Revolving Promissory Notes

9 Months Ended

Sep. 30, 2013

Long-Term Debt and Revolving Promissory Notes

Long-term debt, including unamortized discounts and premiums, is as follows:



	Interest Rates	Maturities	September 30, 2013			December 31, 2012
			(Dollars in millions)
Qwest Communications International Inc.
Senior notes	7.125%	2018	$	800		800
Unamortized premiums			43			49
Qwest Capital Funding
Senior notes	6.500% - 7.750%	2018 - 2031	981			981
Unamortized premiums, net			25			27
Qwest Corporation
Senior notes	6.125% - 8.375%	2014 - 2053	7,411			7,386
Capital lease and other obligations	Various	Various	85			113
Unamortized premiums, net			86			127
Qwest Communications Company, LLC
Capital lease and other obligations	Various	Various	123			145
Total long-term debt			9,554			9,628
Less current maturities			(98		)	(856	)
Long-term debt, excluding current maturities			$	9,456		8,772

New Issuance

On May 23, 2013, Qwest Corporation ("QC") issued $775 million aggregate principal amount of 6.125% Notes due 2053, including $25 million principal amount that was sold pursuant to an over-allotment option granted to the underwriters for the offering, in exchange for net proceeds, after deducting underwriting discounts and expenses, of approximately $752 million. The Notes are unsecured obligations and may be redeemed, in whole or in part, on or after June 1, 2018 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

Repayment

On June 17, 2013, QC paid at maturity the $750 million principal amount of its floating rate Notes.

Revolving Promissory Notes

QCII has a revolving promissory note with an affiliate of CenturyLink that provides us with a funding commitment with an aggregate principal amount available of $3.0 billion through June 30, 2022, of which $1.958 billion was outstanding as of September 30, 2013. As of September 30, 2013, the weighted average interest rate under this note was 6.783%. This revolving promissory note and accrued interest thereon is reflected on our consolidated balance sheets as a current liability under notes payable—affiliates.

QC has a revolving promissory note with an affiliate of CenturyLink that provides QC with a funding commitment with an aggregate principal amount available of $1.0 billion through June 30, 2022, of which $741 million was outstanding as of September 30, 2013. As of September 30, 2013, the weighted average interest rate under this note was 6.783%. This revolving promissory note and accrued interest thereon is reflected on our consolidated balance sheets as a current liability under notes payable—affiliates.

Covenants

As of September 30, 2013, we believe we were in compliance with the provisions and covenants of our debt agreements.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details