By Paul A. Harris
St. Louis, Aug. 3 - Qwest Corp. priced an upsized $600 million issue of eight-year senior notes (Ba3/BB/BB+) at par to yield 7½% in a quick-to-market transaction on Thursday, according to a market source.
The yield came on top of the price talk.
Deutsche Bank Securities, Credit Suisse and Merrill Lynch & Co. were joint bookrunners for the Rule 144A with registration rights notes.
Proceeds will be used to refinance a $500 million term loan at Qwest Corp. and for general corporate purposes.
The issue was upsized to $600 million from $500 million. The extra $100 million of proceeds will be used to repay notes coming due in January 2007.
Denver-based Qwest is the fourth-largest regional Bell operating company.
| Issuer: | Qwest Corp.
|
| Amount: | $600 million (increased from $500 million)
|
| Maturity: | Oct. 1, 2014
|
| Security descripition: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Credit Suisse, Merrill Lynch & Co.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 257 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7½% area
|
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