Qwest gets 76% of 7.20% notes in early tender

New York, Aug. 25 -- Qwest Communications International Inc. said that its Qwest Corp. (Ba3/BB-) subsidiary had received tenders of $569 million of its 7.20% notes scheduled to mature on Nov. 1, or 76% of the outstanding principal amount, under the company's previously announced tender offer for any and all of those bonds. That amount was tendered by the early participation payment deadline, which expired as scheduled at 5 p.m. ET on Aug. 24, without extension.

The tendered bonds were purchased for cash. Settlement was completed Wednesday, and interest was paid up to, but not including, Wednesday. Holders who tendered by the early participation deadline received a previously announced consent payment as part of their total consideration.

The underlying tender offer for the notes meanwhile continues and is scheduled to expire on Sept. 8, subject to possible extension. Any notes tendered after the early participation deadline may not be withdrawn.

As previously announced, Qwest, a Denver-based telecommunications company, said on Aug. 11 that Qwest Corp. was offering to purchase for cash any and all of its $750 million of outstanding 7.20% notes.

It set a now expired early participation deadline of 5 p.m. ET on Aug. 24 and said that the tender offer would expire at midnight ET on Sept. 8, subject to possible extension.

Qwest said that holders validly tendering their notes by the early participation deadline would receive $1,009.40 per $1,000 principal amount of notes tendered and accepted by the company for purchase, consisting of a purchase price of $989.40 per $1,000 principal amount and an early participation payment of $20 per $1,000 principal amount. Holders tendering notes after the early participation deadline but before the tender offer expires would only receive the purchase price of $989.40 per $1,000 principal amount. All tendering holders will also receive accrued and unpaid interest up to, but not including, the date of payment.

Qwest said that the offer is not subject to the receipt of any minimum amount of tenders and would be subject to the satisfaction of certain conditions, including the completion of the separately announced private offering of $500 million principal amount of new Qwest Corp. debt securities launched simultaneously with the tender offer (Qwest sold an upsized issue of $575 million new 7 7/8% seven-year senior notes on Aug. 12 at 98.66 to yield 8 1/8%).

Lehman Brothers (contact the Liability Management Group at 212 528-7581 or 800 438-3242) and Goldman, Sachs & Co. (contact the Credit Liability Management Group at 212 357-3019 or 800 828-3182) are the dealer managers for the offer. Requests for documentation can be made to Global Bondholder Services Corp., the information agent (call 866 470-3500 or collect at 212 430-3774).

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