By Paul A. Harris
St. Louis, June 20 - Qwest Communications International priced a $200 million add-on to its 7½% senior notes due Feb. 15, 2014, series B, at 92.25 on Monday, resulting in a yield of 8.802%, according to a syndicate source.
The sale generated $184.5 million of proceeds.
Merrill Lynch and Deutsche Bank Securities ran the books for the Rule 144A add-on. Banc of America Securities LLC and UBS Investment Bank were the co-managers.
A syndicate source told Prospect News that the new deal is an add-on to the $600 million add-on the company priced at 91.827 on June 8, 2005 to yield 8 7/8%. Those two issues, now totaling a face amount of $800 million, are fully fungible.
However neither of the add-on issues is fungible with the original notes that priced at 98.2753 on Jan. 30, 2004 to yield 7¾%, the source added.
As a result of the two June 2005 transactions, there are now two issues: the original notes sold in early 2004 in a $500 million tranche and $800 million of the new notes.
Proceeds will be used to refinance debt and for general corporate purposes.
The issuer is a Denver-based telecommunications company.
| Issuer: | Qwest Communications International
|
| Face amount: | $200 million
|
| Proceeds: | $184.5 million
|
| Maturity: | Feb. 15, 2014
|
| Security description: | Add-on to 7½% senior notes series B
|
| Bookrunners: | Merrill Lynch, Deutsche Bank Securities
|
| Co-managers: | Banc of America Securities LLC, UBS Investment Bank
|
| Coupon: | 7½%
|
| Price: | 92.25
|
| Yield: | 8.802%
|
| Spread: | 472 basis points
|
| Call features: | Callable after Feb. 15, 2009 at 103.75, 102.50, 101.25, par on Feb. 15, 2012 and thereafter
|
| Equity clawback: | Until Feb. 15, 2007
|
| Trade date: | June 20
|
| Settlement date: | June 23 with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
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