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 June 30, 2017			As of December 31, 2016
			(Dollars in millions)
Senior notes	6.125% - 7.750%	2021 - 2057	$	7,294		7,259
Term loan	2.980%	2025	100			100
Capital lease and other obligations	Various	Various	40			32
Unamortized premiums, net			—			4
Unamortized debt issuance costs			(151		)	(134	)
Total long-term debt			7,283			7,261
Less current maturities			(17		)	(514	)
Long-term debt, excluding current maturities			$	7,266		6,747
Note payable - affiliate	6.710%	2022	$	944		914

New Issuance

On April 27, 2017, Qwest Corporation issued $575 million aggregate principal amount of 6.75% Notes due 2057, and on May 5, 2017, issued an additional $85 million aggregate principal amount of such notes pursuant to an over-allotment option in exchange for aggregate net proceeds, after deducting underwriting discounts and other expenses, of $638 million. All of the 6.75% Notes are senior 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.

Repayments

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

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 $944 million was outstanding as of June 30, 2017. As of June 30, 2017, the weighted-average interest rate was 6.710%. As of June 30, 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 June 30, 2017, $5 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet. In accordance with the terms of the note, all accrued interest and unpaid interest is capitalized to the unpaid principal balance on June 1 and December 1 of each year.

Covenants

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. These indentures do not contain any cross-default provisions.

As of June 30, 2017, we believe we were in compliance with the provisions and covenants of our debt agreements.