New Issue: Qwest upsizes to $800 million, prices 7 1/8% eight-year notes at 98.44 to yield 7 3/8%

By Paul A. Harris

St. Louis, Jan. 7 - Qwest Communications International Inc. priced a massively upsized $800 million issue of 7 1/8% eight-year senior notes (Ba3/B+/BB+) at 98.44 to yield 7 3/8% on Thursday, according to an informed source.

The yield printed at the tight end of the 7 3/8% to 7½% price talk.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co. and Wells Fargo Securities were joint bookrunners for the quick-to-market issue, which was upsized from $500 million.

Proceeds will be used for general corporate purposes, including repayment of debt, and funding and refinancing investments in the company's and its subsidiaries' telecommunications assets.

The issuer is a Denver-based telecommunications company.

Issuer:	Qwest Communications International Inc.
Face amount:	$800 million, increased from $500 million
Proceeds:	$787.52 million
Maturity:	April 1, 2018
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., Morgan Stanley & Co., Wells Fargo Securities
Coupon:	7 1/8%
Price:	98.44
Yield:	7 3/8%
Spread:	378 bps
Call protection:	Three years
Trade date:	Jan. 7
Settlement date:	Jan. 12
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
	Fitch: BB+
Distribution:	Rule 144A
Price talk:	7 3/8% to 7½%

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