Qwest tenders for up to $500 million 8.375% notes, 7.625% notes

By Jennifer Chiou

New York, March 21 - Qwest Corp. announced the start of its offer to purchase up to $500 million total of its $810.5 million of outstanding 8.375% notes due 2016 and $400 million of outstanding 7.625% notes due 2015.

The 8.375% notes have a separate tender cap of up to $330 million.

The offer will expire at midnight ET on April 17.

The payouts will be determined using the 0.875% Treasury due Feb. 28, 2017 plus a spread of 175 basis points for the 8.375% notes and the 0.375% Treasury due March 15, 2015 plus 155 bps for the 7.625% notes. The total consideration will include a $30.00 early tender payment for those who submit their notes prior to 5 p.m. ET on April 3.

Qwest will also pay accrued interest to the anticipated settlement date of April 18.

Bank of America Merrill Lynch (888 292-0070 or 646 855-3401), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), UBS Securities LLC (888 719-4210 or 203 719-4210) and Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341) are the dealer managers.

Qwest is a Monroe, La.-based telecommunications company and a subsidiary of CenturyLink.

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