Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v2.4.0.8
Long-Term Debt
 9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Debt Disclosure
Long-Term Debt
Long-term debt consisted of the following:
 
September 30,

December 31,

(in millions)
2014

2013

7.5% Senior Secured Notes due 2019, net of original issue discount
—

761

3.125% Senior Secured Notes due 2019, net of original issue discount
399

—

7.375% Senior Secured Notes due 2020
500

500

5.125% Senior Secured Notes due 2022
500

500

4.375% Senior Secured Notes due 2023, net of original issue discount
750

750

4.85% Senior Secured Notes due 2024, net of original issue discount
600

—

4.45% Senior Secured Notes due 2025, net of original issue discount
599

—

5.45% Senior Secured Notes due 2034, net of original issue discount
399

—

5.95% Senior Secured Notes due 2043, net of original issue discount
300

300

Senior secured credit facility
32

922

Capital lease obligations
66

80

Total debt
4,145

3,813

Less current portion
(10
)
(13
)
Long-term portion of debt and capital lease obligations
$
4,135

3,800


Senior Secured Notes
On March 18, 2014, QVC issued $400 million principal amount of 3.125% Senior Secured Notes due 2019 at an issue price of 99.828% and $600 million principal amount of 4.850% Senior Secured Notes due 2024 at an issue price of 99.927% (collectively, the “March Notes”). The March Notes are secured by a first-priority lien on the capital stock of QVC, which is the same collateral that secures QVC's existing secured indebtedness and certain future indebtedness. The net proceeds from the offerings of the March Notes were used to repay indebtedness under QVC’s senior secured credit facility and for working capital and other general corporate purposes. Interest is payable semi-annually.


On August 21, 2014, QVC issued $600 million principal amount of 4.45% Senior Secured Notes due 2025 at an issue price of 99.860% and $400 million principal amount of 5.45% Senior Secured Notes due 2034 at an issue price of 99.784% (collectively, the “August Notes”). The August Notes are secured by a first-priority lien on the capital stock of QVC, which is the same collateral that secures QVC’s existing secured indebtedness and certain future indebtedness. Interest is payable semi-annually.
The net proceeds from the offerings of the August Notes were used for the redemption of QVC’s 7.5% Senior Secured Notes due 2019 (the "Redemption") on September 8, 2014 and for working capital and other general corporate purposes. As a result of the Redemption, we incurred an extinguishment loss of $48 million for the three and nine month periods ended September 30, 2014, recorded as loss on extinguishment of debt in the condensed consolidated statements of operations.
Senior Secured Credit Facility
QVC had approximately $2 billion available under the terms of the Company's senior secured credit facility at September 30, 2014. The weighted average interest rate on the outstanding balance of the senior secured credit facility was 2.3% at September 30, 2014. In connection with the 2014 Reattribution, the Company increased the balance on its credit facility to $1.06 billion on October 3, 2014.
Other Debt Related Information
QVC was in compliance with all of its debt covenants at September 30, 2014.
During the quarter, there were no significant changes to QVC's debt credit ratings.
The weighted average rate applicable to all of the outstanding debt (excluding capital leases) was 5.0% as of September 30, 2014.