By Paul A. Harris
St. Louis, Nov. 18 - Qwest Corp. priced a $250 million add-on to its 7 7/8% notes due Sept. 1, 2011 (Ba3/BB-) at 107.50 to yield 6.485% on Thursday, according to a syndicate source.
Price talk was 107.25 to 107.50.
Goldman Sachs had the physical books for the Rule 144A offering. Lehman Brothers and Deutsche Bank Securities were joint bookrunners. The senior co-managers were Banc of America Securities, Credit Suisse First Boston and Wachovia Securities. Citigroup, BNY Securities and The Royal Bank of Scotland were co-managers.
Proceeds will be used for general corporate purposes, including funding or refinancing investments in telecom assets.
The original $575 million issue priced at 98.66 on Aug. 12 to yield 8 1/8%.
Qwest is a Denver-based provider of voice, video and data services.
| Issuer: | Qwest Corp.
|
| Amount: | $250 million
|
| Security description: | Add-on to 7 7/8% notes
|
| Maturity: | Sept. 1, 2011
|
| Bookrunners: | Goldman Sachs (physical books), Lehman Brothers, Deutsche Bank Securities (joint bookrunners)
|
| Senior co-managers: | Banc of America Securities, Credit Suisse First Boston, Wachovia Securities
|
| Co-managers: | Citigroup, BNY Securities, The Royal Bank of Scotland
|
| Price: | 107.50
|
| Yield: | 6.485%
|
| Spread: | 271 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 23 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 107.25-107.50
|
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