By Paul A. Harris
St. Louis, Jan. 30 - Qwest Communications International Inc. priced a combined $1.775 billion of high-yield notes Friday in a restructured and slightly upsized three-tranche Rule 144A deal (B3/CCC+), a syndicate source said.
The Denver-based telephone company priced a downsized $525 million (from $750 million) of senior notes due Feb. 15, 2011 at 99.3205 with a 7¼% coupon to yield 7 3/8%.
Price talk was 7% to 7¼%.
Banc of America Securities, Credit Suisse First Boston, Deutsche Bank Securities and Goldman Sachs & Co. ran the books. The co-managers were Lehman Brothers, Merrill Lynch & Co. and Wachovia Securities.
The company also priced a downsized $500 million (from $750 million) offering of senior notes due Feb. 15, 2014 at 98.2753 with a 7½% coupon to yield 7¾%.
Price talk was 7¼% to 7½%.
Banc of America Securities, JP Morgan, Lehman Brothers and Merrill Lynch & Co. ran the books. The co-managers were Credit Suisse First Boston and Deutsche Bank Securities.
In addition the company priced an upsized $750 million (from $250 million) of senior floating-rate notes due Feb. 15, 2009 at par to bear an interest rate of Libor plus 350 basis points.
Price talk was Libor plus 325 basis points area.
Banc of America Securities, JP Morgan, Morgan Stanley and UBS Investment Bank ran the books for the floating-rate tranche.
The notes are guaranteed on a senior subordinated basis by Qwest Services Corp.
The proceeds will be used to repay debt, including the tender for Qwest Capital Funding's notes due 2004, and for general corporate purposes.
Issuer: Qwest Communications International Inc.
| Amount: | $1.775 billion in three tranches
|
| Pricing date: | Jan. 30
|
| Settlement date: | Feb. 5 for all three tranches
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
|
|
| Seven-year fixed-rate notes
|
| Amount: | $525 million (decreased from $750 million)
|
| Maturity: | Feb. 15, 2011
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities, Credit Suisse First Boston, Deutsche Bank Securities, Goldman Sachs & Co.
|
| Co-managers: | Lehman Brothers, Merrill Lynch & Co., Wachovia Securities
|
| Coupon: | 7¼%
|
| Price: | 99.3205
|
| Yield: | 7 3/8%
|
| Spread: | 369 basis points
|
| Call features: | Callable after Feb. 15, 2008 at 103.625, 101.813, par on Feb. 15, 2010 and thereafter
|
| Price talk: | 7%-7¼%
|
|
|
| 10-year fixed-rate notes
|
| Amount: | $500 million (decreased from $750 million)
|
| Maturity: | Feb. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities, JP Morgan, Lehman Brothers, Merrill Lynch & Co.
|
| Co-managers: | Credit Suisse First Boston, Deutsche Bank Securities, Wachovia Securities
|
| Coupon: | 7½%
|
| Price: | 98.2753
|
| Yield: | 7¾%
|
| Spread: | 362 basis points
|
| Call features: | Callable after Feb. 15, 2009 at 103.75, 102.50, 101.25, par on Feb. 15, 2012 and thereafter
|
| Price talk: | 7¼%-7½%
|
|
|
| Five-year floating-rate notes
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| Amount: | $750 million (increased from $250 million)
|
| Maturity: | Feb. 15, 2009
|
| Security description: | Senior floating-rate notes
|
| Bookrunners: | Banc of America Securities, JP Morgan, Morgan Stanley, UBS Investment Bank
|
| Interest rate: | Libor plus 350 basis points
|
| Price: | Par
|
| Call protection: | Two years
|
| Price talk: | Libor plus 325 basis points area
|
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