Qwest Corporation, a subsidiary of US telecoms operator Centurylink, is set to make an offering of fixed-rate senior notes with a 40-year maturity in order to fund a tender offer for existing debt.
Centurylink said that Qwest expects to make the…
Qwest Corporation, a subsidiary of US telecoms operator Centurylink, is set to make an offering of fixed-rate senior notes with a 40-year maturity in order to fund a tender offer for existing debt.
Centurylink said that Qwest expects to make the offering, but no definitive agreement has been signed and there is no guarantee that it will be completed.
The joint bookrunning managers for the offering are Citigroup, BofA Merrill Lynch, UBS and Wells Fargo.
The proposed bond, as well as available cash and borrowings under Centurylink’s revolver, will be used to fund a tender offer for Qwest’s 7.625% notes due 2015 and 8.375% notes due 2016.
The same four banks are the deal managers for the tender offer.
Centurylink said that Qwest was seeking “to extend the average maturity and reduce the average weighted interest rate of Qwest’s consolidated debt”.
Earlier in March, Centurylink made a US$2.05bn debt offering in order to fund a similar tender offer for debt held by another subsidiary, Embarq Corporation.
