Bank Borrowings. At December 31, 2002, we had no outstanding borrowings under our $300.0 million credit facility with a syndicate of nine banks which has a borrowing base of $195.0 million and expires in October 2005. At December 31, 2001, we had borrowings of $134.0 million under our credit facility. The interest rate is either (a) the lead bank’s prime rate (4.25% at December 31, 2002) or (b) the adjusted London Interbank Offered Rate (“LIBOR”) plus the applicable margin depending on the level of outstanding debt. The applicable margin is based on the ratio of the outstanding balance to the last calculated borrowing base. Of the $134.0 million borrowed at December 31, 2001, $130.0 million was borrowed at the LIBOR rate plus applicable margin, which averaged 3.64%.

The terms of our credit facility include, among other restrictions, a limitation on the level of cash dividends (not to exceed $5.0 million in any fiscal year), a remaining aggregate limitation on purchases of our stock of $15.0 million, requirements as to maintenance of certain minimum financial ratios (principally pertaining to working capital, debt, and equity ratios), and limitations on incurring other debt. Since inception, no cash dividends have been declared on our common stock. We are currently in compliance with the provisions of this agreement. The credit facility is secured by our domestic oil and gas properties. We have also pledged 65% of the stock in our two active New Zealand subsidiaries as collateral for this credit facility. The borrowing base is re-determined at least every six months and was reconfirmed by our bank group in November 2002 with the same $195.0 million borrowing base. The next scheduled borrowing base review is in May 2003.

Interest expense on the credit facility, including commitment fees and amortization of debt issuance costs, totaled $3,618,570 in 2002, $5,833,564 in 2001, and $654,936 in 2000. The amount of commitment fees included in interest expense was $569,773, $306,663, and $284,633 in 2002, 2001, and 2000, respectively.

Convertible Notes. In November 1996, we sold $115.0 million of 6.25% Convertible Subordinated Notes due 2006. The Convertible Notes were unsecured and convertible into Swift common stock at the option of the holders at an adjusted conversion price of $31.534 per share. Interest on the notes was payable semiannually, on May 15 and November 15. On December 11, 2000, we called for the redemption of our Convertible Notes effective December 26, 2000, at 103.75% of their principal amount. Holders of approximately $100.0 million of the Convertible Notes elected to convert their notes into 3,164,644 shares of our common stock. Holders of the remaining $15.0 million of the Convertible Notes elected to redeem their notes for cash plus accrued interest. This cash redemption resulted in our recognizing an Extraordinary Loss on the Early Extinguishment of Debt (net of taxes) of $0.6 million, or $1.0 million before taxes.

Interest expense on the Convertible Notes, including amortization of debt issuance costs, totaled $7,426,599 in 2000.

Senior Notes Due 2009. Our Senior Notes due 2009 consist of $125.0 million of 10.25% Senior Subordinated Notes due August 2009. The Senior Notes were issued at 99.236% of the principal amount on August 4, 1999, and will mature on August 1, 2009. The Senior Notes are unsecured senior subordinated obligations and are subordinated in right of payment to all our existing and future senior debt, including our bank debt. Interest on the Senior Notes is payable semiannually, on February 1 and August 1, and commenced with the first payment on February 1, 2000. On or after August 1, 2004, the Senior Notes are redeemable for cash at the option of Swift, with certain restrictions, at 105.125% of principal, declining to 100% in 2007. Upon certain changes in control of Swift, each holder of Senior Notes will have the right to require us to repurchase the Senior Notes at a purchase price in cash equal to 101% of the principal amount, plus accrued and unpaid interest to the date of purchase. We are currently in compliance with the provisions of the indenture governing the Senior Notes.

Interest expense on the Senior Notes due 2009, including amortization of debt issuance costs and discount, totaled $13,156,973 in 2002, $13,123,052 in 2001, and $13,092,127 in 2000.

Senior Notes Due 2012. Our Senior Notes due 2012 at December 31, 2002, consist of $200,000,000 of 9.375% Senior Subordinated Notes due May 2012. The Senior Notes were issued on April 11, 2002, and will mature on May 1, 2012. The notes are unsecured senior subordinated obligations and are subordinated in right of payment to all our existing and future senior debt, including our bank debt. Interest on the Senior Notes is payable semiannually on May 1 and November 1, with the first interest payment on November 1, 2002. On or after May 1, 2007, the Senior Notes are redeemable for cash at the option of Swift, with certain restrictions, at 104.688% of principal, declining to 100% in 2010. In addition, prior to May 1, 2005, we may redeem up to 33.33% of the Senior Notes with the proceeds of qualified offerings of our equity at 109.375% of the principal amount of the Senior Notes, together with accrued and unpaid interest. Upon certain changes in control of Swift, each holder of Senior Notes will have the right to require us to repurchase the Senior Notes at a purchase price in cash equal to 101% of the principal amount, plus accrued and unpaid interest to the date of purchase. We are currently in compliance with the provisions of the indenture governing the Senior Notes.

Interest expense on the Senior Notes due 2012, including amortization of debt issuance costs and discount, totaled $13,525,599 in 2002.

We have capitalized interest in the amount of $7,000,000, $6,300,000, and $5,000,000 in 2002, 2001, and 2000, respectively.