Qwest plans to use cash balances to fund $1.2 billion offer for notes

By Lisa Kerner

Charlotte, N.C., Feb. 24 - Qwest Communications International Inc.'s purchase of $1.2 billion of two outstanding debt securities through its subsidiary Qwest Capital Funding is expected to be funded using existing cash balances, according to Qwest media relations manager Stephanie Walkenshaw.

The company said the securities include $402,923,000 of 7.9% notes due 2010 and $800.98 million of 7¼% notes due 2011.

The cash tender offer for the notes, which ends March 24, is being done at this time so Qwest can "reduce debt and realize interest savings," Walkenshaw said.

Walkenshaw noted that Qwest recently announced it planned to redeem all debt maturing over the next 12 months.

Qwest is a Denver-based telecommunications company.

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