Long-Term Debt and Revolving Promissory Note

3 Months Ended

Mar. 31, 2014

Long-Term Debt and Revolving Promissory Note

As of the following dates indicated, our long-term debt, including unamortized discounts and premiums and note payable-affiliate, was as follows:



	Interest Rates	Maturities	March 31, 2014			December 31, 2013
			(Dollars in millions)
Senior notes	6.125% - 8.375%	2014 - 2053	$	7,411		7,411
Capital lease and other obligations	Various	Various	58			72
Unamortized premiums (discounts), net			64			75
Total long-term debt			7,533			7,558
Less current maturities			(635		)	(637	)
Long-term debt, excluding current maturities			$	6,898		6,921
Note payable-affiliate	6.619%	2022	$	754		754

Revolving Promissory Note

We are currently indebted to an affiliate of our ultimate parent company, CenturyLink, Inc. ("CenturyLink"), 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 $754 million was outstanding as of March 31, 2014. For the three months ended March 31, 2014, the weighted average interest rate was 6.619%. As of March 31, 2014 and 2013, this revolving promissory note is reflected on our consolidated balance sheets as a current liability under note payable-affiliate. As of March 31, 2014, $13 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet.

Covenants

As of March 31, 2014, 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.

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