Long-Term Debt and Credit Facilities

6 Months Ended

Jun. 30, 2013

Long-Term Debt and Credit Facilities

Long-Term Debt and Credit Facilities

(3)   Long-Term Debt and Credit Facilities

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

	Interest Rates		Maturities		June 30, 2013		December 31, 2012
					(Dollars in millions)
CenturyLink, Inc.
Senior notes		5.000% - 7.650%		2015 - 2042	$	7,075		6,250
Credit facility(1)		4.250%		2017		45		820
Term loan		2.450%		2019		413		424
Subsidiaries
Qwest
Senior notes		6.125% - 8.375%		2014 - 2053		9,192		9,168
Embarq
Senior notes		7.082% - 7.995%		2016 - 2036		2,669		2,669
First mortgage bonds		6.875% - 8.770%		2013 - 2025		322		322
Other		6.750% - 9.000%		2013 - 2019		200		200
Capital lease and other obligations		Various		Various		683		734
Unamortized (discounts) premiums and other, net						(14)		18
Total long-term debt						20,585		20,605
Less current maturities						(302)		(1,205)
Long-term debt, excluding current maturities					$	20,283		19,400

(1)

The information presented here illustrates the interest rates and maturity on our Credit Facility. The outstanding amount of our Credit Facility borrowings at June 30, 2013 was $45 million with an interest rate of 4.250%.

New Issuances

        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 interest.

        On March 21, 2013, CenturyLink issued $1 billion aggregate principal amount of 5.625% Notes due 2020 in exchange for net proceeds, after deducting underwriting discounts and expenses, of approximately $988 million. The Notes are unsecured obligations and may be redeemed, in whole or in part, at any time at a redemption price equal to the greater of par or a "make-whole" rate specified in the Notes, plus accrued and unpaid interest to the redemption date. In addition, at any time on or prior to April 1, 2016, we may redeem up to 35% of the principal amount of the Notes at a redemption price equal to 105.625% of the principal amount thereof, plus accrued and unpaid interest to the redemption date, with the net cash proceeds of certain equity offerings. Under certain circumstances, we will be required to make an offer to repurchase the Notes at a price of 101% of their aggregate principal amount plus accrued and unpaid interest to the repurchase date.

Repayments

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

        On April 1, 2013, CenturyLink paid at maturity the $176 million principal amount of its 5.50% Notes.

Covenants

        As of June 30, 2013, we believe we were in compliance with the provisions and covenants contained in our Credit Facility and other debt agreements.

Subsequent Events

        On July 15, 2013, Embarq Corporation ("Embarq") paid at maturity the $59 million principal amount of its 6.875% Notes.