Long-Term Debt and Revolving Promissory Note

Long-term debt, including unamortized discounts and premiums, unamortized debt issuance costs and note payable - affiliate, were as follows:



	Interest Rates	Maturities	As of March 31, 2017			As of December 31, 2016
			(Dollars in millions)
Senior notes	6.125% - 7.750%	2017 - 2056	$	7,259		7,259
Term loan	2.740%	2025	100			100
Capital lease and other obligations	Various	Various	34			32
Unamortized premiums, net			2			4
Unamortized debt issuance costs			(134		)	(134	)
Total long-term debt			7,261			7,261
Less current maturities			(515		)	(514	)
Long-term debt, excluding current maturities			$	6,746		6,747
Note payable - affiliate	6.678%	2022	$	914		914

Revolving Promissory Note

We are currently indebted to an affiliate of our ultimate parent company, CenturyLink, Inc., under a revolving promissory note that provides us with a funding commitment of up to $1.0 billion aggregate principal amount through June 30, 2022, of which $914 million was outstanding as of March 31, 2017. As of March 31, 2017, the weighted-average interest rate was 6.678%. As of March 31, 2017 and December 31, 2016, this revolving promissory note is reflected on our consolidated balance sheets as a current liability under note payable - affiliate. As of March 31, 2017, $20 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet. In accordance with the note agreement, all accrued interest and unpaid interest is capitalized to the unpaid principal balance on June 1 and December 1 of each year.

Covenants

The indentures governing our notes contain certain covenants including, but not limited to: (i) a prohibition on certain liens on our assets; and (ii) a limitation on mergers or sales of all, or substantially all, of our assets, which limitation requires that a successor assume the obligation with regard to these notes. These indentures do not contain any cross-default provisions.

Our senior notes were issued under indentures dated April 15, 1990 and October 15, 1999. These indentures do not contain any financial covenants, but do include restrictions that limit our ability to (i) incur, issue or create liens upon our property and (ii) consolidate with or merge into, transfer or lease all or substantially all of our assets to any other party.

As of March 31, 2017, we believe we were in compliance with the provisions and covenants of our debt agreements.

Subsequent Events

On May 4, 2017, Qwest Corporation redeemed all $500 million of its 6.5% Notes due 2017, which resulted in an immaterial loss.

On May 9, 2017, Qwest Corporation redeemed $125 million aggregate principal amount of the remaining $288 million of its 7.5% Notes due 2051, which resulted in an immaterial loss.

On April 27, 2017, Qwest Corporation issued $660 million aggregate principal amount of 6.75% Notes due 2057, including $85 million principal amount that was sold pursuant to an over-allotment option, in exchange for net proceeds, after deducting underwriting discounts and other expenses, of $638 million. All of the 6.75% Notes are unsecured obligations and may be redeemed by Qwest Corporation, in whole or in part, on or after June 15, 2022, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date.