Qwest completes tender for $904 million of notes

New York, July 6 - Qwest Communications International Inc. said that it and its Qwest Corp. and Qwest Services Corp. subsidiaries have completed their tender offer for up to $904 million principal amount of their debt. The response was slightly higher than the level achieved by the early participation deadline.

By the expiry of the tender at midnight ET on July 5, investors had tendered $210.7 million or 84% of Qwest Corp.'s $250 million of 6 5/8% notes due 2005, $129.4 million or 86% of Qwest Corp.'s $150 million of 6 1/8% notes due 2005 and $451.7 million or 90% of Qwest Services' $504.103 million of 13% senior subordinated secured notes due 2007. That was up from $210.3 million and $128.8 million and unchanged from $451.7 million, respectively, by the early participation deadline of 5 p.m. ET on June 20.

Final settlement was completed Wednesday.

Early tenders settled June 21.

As announced on June 20, for Qwest Services' $504.103 million of 13% senior subordinated secured notes due 2007, the price is $1,082.62 per $1,000 principal amount, for Qwest Corp.'s $250 million of 6 5/8% notes due 2005, it is $981.50 per $1,000 principal amount and for Qwest Corp.'s $150 million of 6 1/8% notes due 2005, it is $984.17 per $1,000 principal amount.

All prices include a $25.00 per $1,000 early participation payment.

Qwest announced the offer on June 7.

It said pricing for each series of notes would be set at 2 p.m. ET on June 20 to give a yield to maturity or yield to the first call date of 50 basis points over the yield on the reference Treasury, minus accrued interest up to the first purchase date, expected to be June 21.

The total includes a $25.00 per $1,000 early participation payment that was only paid to holders who tendered by 5 p.m. ET on June 20.

Qwest will also pay accrued interest up to but excluding the settlement date.

For the Qwest Services' 13% notes, the reference security is the 1.875% Treasury due Nov. 30 and the earliest redemption date is Dec. 15. For the Qwest Corp. 6 5/8% notes, the reference security is the 2% Treasury due Aug. 31 and the maturity date is Sept. 15, while for the Qwest Corp. 6 1/8% notes the reference security is the 5.75% Treasury due Nov. 15 and the maturity date is Nov. 15.

The Denver-based telecommunications company said that there was no minimum condition to the tender, but the offers were subject to completion of an offering of $1.25 billion of new notes.

The information agent is Global Bondholder Services Corp. (866 488-1500 or call collect 212 430-3774).

Merrill Lynch and Co. (888 ML4-TNDR or call collect 212 449-4914) and Deutsche Bank Securities (call collect 212 250-4270) are dealer managers.

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