By Paul A. Harris
St. Louis, May 2 - Qwest Corp., a subsidiary of Qwest Communications International Inc., priced an upsized $500 million issue of 10-year non-callable senior notes (Ba1/BB+/BBB-) at par to yield 6½% on Wednesday, according to a market source.
The yield came at the tight end of the 6½% to 6 5/8% price talk.
JP Morgan, Banc of America Securities LLC and Merrill Lynch & Co. were joint bookrunners for the quick-to-market Rule 144A issue, which was upsized from $400 million. Citigroup, Deutsche Bank Securities and Lehman Brothers were co-managers.
Proceeds will be used for general corporate purposes, including debt repayment, and funding and refinancing investments in the company's telecommunications assets.
The issuer is a Denver-based provider of voice and data solutions for businesses and government agencies.
| Issuer: | Qwest Corp.
|
| Amount: | $500 million (upsized from $400 million)
|
| Maturity: | June 1, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | JP Morgan, Banc of America Securities LLC, Merrill Lynch & Co.
|
| Co-managers: | Citigroup, Deutsche Bank Securities, Lehman Brothers
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 186 bps
|
| Call protection: | Non-callable; make-whole provision at Treasuries plus 50 bps
|
| Trade date: | May 2
|
| Settlement date: | May 16
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Distribution: | Rule 144A
|
| Price talk: | 6½% to 6 5/8%
|
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