Long-term Debt and Lease Obligations: (Tables)

12 Months Ended

Dec. 31, 2019

Long-term Debt and Capital Lease Obligations [Abstract]

ebt was as follows at December 31:



(Millions)	2019			2018
Issued by Windstream Services:
Superpriority debtor-in-possession term loan facility	$	500.0		$	—
Senior secured credit facility, Tranche B6 – variable rates, due March 29, 2021 (a)	1,180.5			1,180.5
Senior secured credit facility, Tranche B7 – variable rates, due February 17, 2024	568.4			568.4
Senior secured credit facility, Revolving line of credit – variable rates, due April 24, 2020 (b)	802.0			1,017.0
Senior First Lien Notes – 8.625%, due October 31, 2025 (c) (f)	600.0			600.0
Senior Second Lien Notes – 10.500%, due June 30, 2024 (d) (f) (h)	414.9			414.9
Senior Second Lien Notes – 9.000%, due June 30, 2025 (d) (f) (h)	802.0			802.0
Debentures and notes, without collateral:
2020 Notes – 7.750%, due October 15, 2020 (f) (h)	78.1			78.1
2021 Notes – 7.750%, due October 1, 2021 (f) (h)	70.1			70.1
2022 Notes – 7.500%, due June 1, 2022 (f) (h)	36.2			36.2
2023 Notes – 7.500%, due April 1, 2023 (f) (h)	34.4			34.4
2023 Notes – 6.375%, due August 1, 2023 (f) (h)	806.9			806.9
2024 Notes – 8.750%, due December 15, 2024 (f) (h)	105.8			105.8
Issued by subsidiaries of Windstream Services:
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 (e)	100.0			100.0
Net discount on long-term debt (g)	—			(28.6		)
Unamortized debt issuance costs (g)	—			(57.6		)
Debt prior to reclassification to liabilities subject to compromise	6,099.3			5,728.1
Less current portion	(500.0		)	(5,728.1		)
Less amounts reclassified to liabilities subject to compromise	(5,599.3		)	—
Total long-term debt	$	—		$	—
Weighted average interest rate	8.4		%	7.1		%

Prior to the filing of the Chapter 11 Cases, additional information with respect to our debt obligations was as follows:

(a)

If the maturity of the revolving line of credit was not extended prior to April 24, 2020, the maturity date of the Tranche B6 term loan would have become April 24, 2020; provided further, if the 2020 Notes had not been repaid or refinanced prior to July 15, 2020 with indebtedness having a maturity date no earlier than March 29, 2021, the maturity date of the Tranche B6 term loan would have become July 15, 2020.


(b)	On January 3, 2019, Windstream Services’ reduced future maturities of its revolving line of credit of $312.0 million using proceeds received from the sale of the Consumer CLEC business.


(c)	The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a first priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility.


(d)	The notes are guaranteed by each of our domestic subsidiaries that guarantees debt under Windstream Services’ senior secured credit facility. The notes and the guarantees are secured by a second priority lien on Windstream Services’ and the guarantors’ assets that secure the obligations under the senior secured credit facility.


(e)	These bonds are secured equally with the senior secured credit facility with respect to the assets of Windstream Holdings of the Midwest, Inc.

6. Debt, Continued:


(f)	Windstream Services may call the remaining aggregate principal amounts of these debentures and notes at various premiums upon early redemption.


(g)	The net discount balance and unamortized debt issuance costs are amortized using the interest method over the life of the related debt instrument.

(h)

Balances have been reclassified to liabilities subject to compromise because these obligations were under collateralized as of the Petition Date of the Chapter 11 Cases.

Schedule of Extinguishment of Debt

The net gain (loss) on early extinguishment of debt was comprised of the following:



(Millions)	Discount (Premium) on early redemption			Third-party fees for early redemption			Unamortized (discount) premium on original issuance, net			Unamortized debt issuance costs on original issuance			Net gain (loss) on early extinguishment of debt
Year ended December 31, 2018:
Exchanges of 2021, 2022, April 2023, August 2023 and 2024 Notes	$	226.0		$	—		$	(22.9	)	$	(12.8	)	$	190.3
Total	$	226.0		$	—		$	(22.9	)	$	(12.8	)	$	190.3
Year ended December 31, 2017:
Senior secured credit facility	$	—		$	—		$	(1.8	)	$	(2.3	)	$	(4.1	)
Broadview 2017 Notes	—			—			0.2			—			0.2
EarthLink 2019 and 2020 Notes	(18.3		)	—			16.3			—			(2.0		)
Partial repurchase of 2020 Notes	5.3			—			0.1			(0.4		)	5.0
Exchanges of 2020, 2021, 2022, and April 2023 Notes	(49.9		)	(2.0		)	2.2			(5.8		)	(55.5		)
Total	$	(62.9	)	$	(2.0	)	$	17.0		$	(8.5	)	$	(56.4	)

Schedule of Interest Expense

Interest expense was as follows for the years ended December 31:



(Millions)	2019			2018			2017
Interest expense - long-term debt	$	338.7		$	429.0		$	376.1
Interest expense - long-term lease obligations:
Telecommunications network assets	—			467.0			484.9
Real estate contributed to pension plan	6.2			6.2			6.2
Impact of interest rate swaps	(12.2		)	(3.5		)	10.1
Interest on capital leases and other	5.8			6.3			5.1
Less capitalized interest expense	(6.6		)	(3.7		)	(7.0		)
Total interest expense	$	331.9		$	901.3		$	875.4

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

WINDSTREAM HOLDINGS, INC. 10-K