US telco CenturyLink has cancelled its plan, announced yesterday, to issue senior notes to fund a bond buyback for its subsidiary Qwest Communications.
CenturyLink said it opportunistically sought to refinance Qwest’s debt at attractive rates but that…
US telco CenturyLink has cancelled its plan, announced yesterday, to issue senior notes to fund a bond buyback for its subsidiary Qwest Communications.
CenturyLink said it opportunistically sought to refinance Qwest’s debt at attractive rates but that wasn’t possible.
“In light of current market conditions it has decided not to proceed with its previously-announced senior notes offering at this time,” the company said in a statement.
CenturyLink’s total debt stood at US$21.6bn at the end of June.
JP Morgan, RBC Capital Markets, Barclays, Citigroup and Morgan Stanley were the joint book-running managers for the proposed debt offering.
CenturyLink had intended to use the proceeds of the bond offering to fund Qwest’s tender offer for its US$550m 8% notes due 2015.
JP Morgan and RBC Capital Markets were the dealer managers for the tender offer, which was scheduled for 26 October.
It bought Qwest in 2011 for a reported US$12.2bn.
Fitch had rated the planned notes at BBB- and maintained its stable outlook.
Moody’s assigned Baa3 and maintained its negative outlook, citing CenturyLink’s limited financial flexibility in light of a series of acquisitions.
CenturyLink provides broadband and fixed-line services, and markets DirecTV and Verizon Wireless’ services.
