Long-Term Debt and Note Payable - Affiliate

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Long-Term Debt and Note Payable - Affiliate

Long-Term Debt and Note Payable - Affiliate

The following chart reflects the consolidated long-term debt of Qwest Corporation and its subsidiaries, including finance lease and other obligations, unamortized premiums, net, and unamortized debt issuance costs:

	Interest Rates (1)	Maturities (1)	September 30, 2023		December 31, 2022
			(Dollars in millions)
Senior notes	6.500% - 7.750%	2025 - 2057	$	1,986	1,986
Term loan (2)	SOFR + 2.50%	2027	215		215
Finance lease and other obligations	Various	Various	4		3
Unamortized premiums, net			4		5
Unamortized debt issuance costs			(52)		(52)
Total long-term debt			2,157		2,157
Less current maturities			(1)		(2)
Long-term debt, excluding current maturities			$	2,156	2,155

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(1)As of September 30, 2023.

(2)Qwest Corporation's Term Loan had interest rates of 7.931% and 6.640% as of September 30, 2023 and December 31, 2022, respectively.

Long-Term Debt Maturities

Set forth below is the aggregate principal amount of our long-term debt as of September 30, 2023 (excluding unamortized premiums, net, and unamortized debt issuance costs) maturing during the following years:

	(Dollars in millions)
2023 (remaining three months)	$	—
2024	1
2025	250
2026	1
2027	215
2028 and thereafter	1,738
Total long-term debt	$	2,205

Note Payable - Affiliate

On June 30, 2022, Qwest Corporation entered into an amended and restated revolving promissory note ("Note Payable - Affiliate") with an affiliate of our ultimate parent company, Lumen Technologies, Inc. ("Lender"), that replaces the previous revolving promissory agreement that was scheduled to mature on June 30, 2022 ("Prior Note Payable - Affiliate"). The Note Payable - Affiliate, as amended, provides Qwest Corporation with a funding commitment of up to $2.0 billion. Any outstanding principal balance owed by Qwest Corporation under the Note Payable - Affiliate and the accrued interest thereon is due and payable on demand, but if no demand is made, then on the maturity date. The Note Payable - Affiliate has an initial maturity date of June 30, 2027, but will automatically renew for an unlimited number of successive twelve-month periods unless the Lender provides notice of its intent not to renew at least 30 days prior to the initial maturity date or each subsequent maturity date.

In accordance with the terms of the amended Note Payable - Affiliate, interest is assessed every six months ending on June 30th and December 31st (an "Interest Period") and is payable within 30 days of the end of the respective Interest Period. Interest is accrued on the outstanding principal balance during the respective Interest Period using a weighted average per annum interest rate on the consolidated outstanding debt of Lumen Technologies, Inc. and its subsidiaries.

On September 30, 2022, Qwest Corporation repaid the outstanding principal and interest on the Note Payable - Affiliate of approximately $1.2 billion and $43 million, respectively. As of September 30, 2023, there was no outstanding principal or accrued interest under the Note Payable - Affiliate.

Compliance

As of September 30, 2023, we believe we were in compliance with the financial covenants contained in our material debt agreements in all material respects.