QwestDex $7.05 billion LBO to include bonds, October pricing is likely, say sources

By Paul A. Harris

St. Louis, Mo., Aug. 20 - New high-yield bond issuance figures to be part of the two-stage $7.05 billion debt financing for the leveraged buyout of Qwest Communications' QwestDex yellow pages business, according to market sources.

They added that the first stage of the financing - to help fund the initial $2.75 billion installment of the purchase - presently appears to be October business.

Banc of America Securities, Deutsche Banc Securities, JP Morgan, Lehman Brothers and Wachovia Securities are the underwriters.

In addition to bonds, the financing will include a credit facility. The specific amounts could not be determined by press time. The sponsors are the Carlyle Group and Welsh, Carson, Anderson & Stowe who will share the equity investment equally.

The total $7.05 billion sale of QwestDex will be done in two stages. The first stage for $2.75 billion will involve QwestDex operations in Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. The second piece, $4.3 billion, will involve operations in Arizona, Idaho, Montana, Oregon, Utah, Washington and Wyoming and figures to close in 2003.

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