US telecoms operator Centurylink has announced a tender offer worth up to US$1.25bn for existing debt and a parallel offering of 10-year and 30-year notes.
The company said that the tender offer involved its 7.082% notes due 2016 and its 6.738% notes…
US telecoms operator Centurylink has announced a tender offer worth up to US$1.25bn for existing debt and a parallel offering of 10-year and 30-year notes.
The company said that the tender offer involved its 7.082% notes due 2016 and its 6.738% notes due 2013, and would be carried out by its subsidiary Embarq Corporation.
The tender offer expires at midnight on 30 March.
The lead dealer managers for the tender offer are Barclays Capital and JP Morgan.
Centurylink also said that it expects to sell fixed-rate, senior notes with maturities of 10 and 30 years.
But the operator added that it has not yet entered into a definitive agreement on the bond offering and therefore could not guarantee that it would be completed.
The company expects to use the proceeds of the transaction, as well as available cash and borrowings under its existing revolver, to pay for the debt tender offer.
The joint bookrunning managers for the bond offering are Barclays Capital, JP Morgan, Morgan Stanley and RBC Capital Markets.
Centurylink said that, through the debt tender offer and bond offering, it was looking “to extend the average maturity and reduce the average weighted interest rate of its consolidated debt”.
