Qwest to price $25-par 40-year notes; talk is $250 million at 7.5%

By Stephanie N. Rotondo

Portland, Ore., Sept. 13 - Qwest Corp. is planning to issue $25-par senior notes. The expected issue size is $250 million, and price talk is around 7.5%, according to a trader.

The paper will mature Sept. 15, 2051.

The expected ratings are Baa3/BBB-/BBB-.

Interest will be payable quarterly on March 15, June 15, Sept. 15 and Dec. 15, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

The company can redeem the notes beginning in September 2016 at par plus accrued interest.

Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers. J.P. Morgan Securities LLC and RBC Capital Markets LLC are the lead managers. SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the co-managers.

Proceeds from the sale will be used to redeem a portion of the company's $1.5 billion outstanding 8.875% notes.

Qwest intends to list the notes on the New York Stock Exchange.

Qwest, now a subsidiary of CenturyLink, Inc., is a Monroe, La.-based telecommunications provider.

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