US telco Centurylink plans to issue senior notes to fund a bond buyback for its Qwest Communications subsidiary, which it acquired last year.
In a statement CenturyLink said it expects to sell fixed-rate notes in two tranches with maturities of 10 and…
US telco Centurylink plans to issue senior notes to fund a bond buyback for its Qwest Communications subsidiary, which it acquired last year.
In a statement CenturyLink said it expects to sell fixed-rate notes in two tranches with maturities of 10 and 30 years, although it said this might change depending on market conditions.
JP Morgan, RBC Capital Markets, Barclays, Citigroup and Morgan Stanley are the joint book-running managers for the debt offering.
The proceeds will be used, together with available cash or borrowings under its revolving credit facility, to fund Qwest’s tender offer for its US$550m 8% notes due 2015. The buyback is scheduled for 26 October.
Qwest has also submitted a tender offer to repurchase for cash any and all of its US$800m 7.125% notes due 2018. This offer will expire on 9 October 2012.
JP Morgan and RBC Capital Markets are the dealer managers for the offer.
CenturyLink provides broadband and fixed-line services, and markets DirecTV and Verizon Wireless’ services.
It bought Qwest in 2011 for a reported US$12.2bn.