Centurylink-owned Qwest Corporation plans to sell US$750m notes to repay debt.
The 40-year notes carry a 6.125% coupon and the underwriters have the option to sell a further US$25m notes in case of over-allotments.
BofA Merrill Lynch, Morgan Stanley,…
Centurylink-owned Qwest Corporation plans to sell US$750m notes to repay debt.
The 40-year notes carry a 6.125% coupon and the underwriters have the option to sell a further US$25m notes in case of over-allotments.
BofA Merrill Lynch, Morgan Stanley, UBS and Wells Fargo are the joint book-running managers for the high-yield offering, while RBC Capital Markets and Raymond James are joint lead managers.
The takings will be used to redeem Qwest’s US$750m outstanding floating rate notes due in June. The transaction is expected to close on 23 May.
The telco anticipates rating of Baa3, BBB- and BBB- from Moody’s, S&P and Fitch respectively.
Qwest issued notes with a similar profile in March 2012 when it placed US$500m of 7% notes due 2052. Last October it scrapped a dual-tranche offering to redeem different Qwest notes.
Centurylink offers triple-play services and describes itself as the third-largest telco in the US. It completed its takeover of fixed-line operator Qwest in 2011 for an enterprise value of US$22.4bn.
