Long-Term Debt and Revolving Promissory Note

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt and Revolving Promissory Note

Long-Term Debt and Revolving Promissory Note

The following chart reflects (i) the consolidated long-term debt of Qwest Corporation and its subsidiaries, including unamortized discounts and premiums, unamortized debt issuance costs and (ii) note payable - affiliate:

	Interest Rates	Maturities	As of   March 31, 2018			As of   December 31, 2017
			(Dollars in millions)
Senior notes	6.125% - 7.750%	2021 - 2057	$	7,294		7,294
Term loan	3.890%	2025	100			100
Capital lease and other obligations	Various	Various	32			36
Unamortized premiums, net			1			1
Unamortized debt issuance costs			(150		)	(150	)
Total long-term debt			7,277			7,281
Less current maturities			(17		)	(17	)
Long-term debt, excluding current maturities			$	7,260		7,264
Note payable - affiliate	5.466%	2022	$	981		965

Note Payable - Affiliate

On September 30, 2017, Qwest Corporation entered into an amended and restated revolving promissory note in the amount of $965 million with an affiliate of our ultimate parent company, CenturyLink, Inc. This note replaced and amended the original $1.0 billion revolving promissory note Qwest Corporation entered into on April 18, 2012 with the same affiliate. The outstanding principal balance owed by Qwest Corporation under this revolving promissory note and the accrued interest thereon is due and payable on demand, but if no demand is made, then on June 30, 2022. Interest is accrued on the outstanding balance during an interest period using a weighted average per annum interest rate on the consolidated outstanding debt of CenturyLink and its subsidiaries. As of March 31, 2018, the amended and restated revolving promissory note had an outstanding balance of $981 million and bore interest at a weighted-average interest rate of 5.466%. As of March 31, 2018 and December 31, 2017, the amended and restated revolving promissory note is reflected on our consolidated balance sheets as a current liability under "Note payable - affiliate". In accordance with the terms of the amended and restated revolving promissory note, interest shall be assessed on June 30th and December 31st (an "Interest Period"). Any assessed interest for an Interest Period that remains unpaid on the last day of the subsequent Interest Period is to be capitalized on such date and is to begin accruing interest. As of March 31, 2018, $13 million of accrued interest is reflected in other current liabilities on our consolidated balance sheet.

Covenants

As of March 31, 2018, we believe we were in compliance with the provisions and covenants of our debt agreements.