Qwest to sell $1.75 billion in three tranches on Friday

By Paul A. Harris

St. Louis, Jan. 29 - Qwest Communications International Inc. announced Thursday that it plans to sell $1.75 billion in three tranches of notes (CCC+).

An investor conference call took place on Thursday afternoon and the deal is expected to price on Friday afternoon.

The Denver-based telephone company plans to sell $750 million of senior notes due 2011, non-callable for four years. Price talk is 7%-7¼%.

The company also plans to sell $750 million of senior notes due 2014, non-callable for five years. The price talk 7¼%-7½%

In addition to the two fixed-rate tranches, Qwest plans to sell $250 million of floating-rate notes due 2009, non-callable for two years. The price talk is in the area of Libor plus 325 basis points.

Banc of America Securities is the bookrunner on the left for all three of the Rule 144A tranches, according to syndicate sources.

Additional bookrunners for the fixed-rate tranches are JP Morgan, Lehman Brothers and Merrill Lynch & Co. Co-managers are Credit Suisse First Boston, Deutsche Bank Securities and Wachovia Securities.

Additional bookrunners for the floating-rate tranche are JP Morgan, Morgan Stanley Dean Witter and UBS Investment Bank.

The notes will be guaranteed on a senior subordinated basis by Qwest Services Corp.

The proceeds will be used to repay debt including to help fund the company's tender for Qwest Capital Funding's notes due 2004, and for general corporate purposes.

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