By Stephanie N. Rotondo
Seattle, Aug. 11 – Qwest Corp. sold $850 million of 6.5% $25-par senior notes due Sept. 1, 2056 (expected ratings: Ba1/BBB-/BBB-) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Price talk was 6.5% to 6.625%. There is a $127.5 million over-allotment option.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable quarterly, beginning Dec. 1. The company can redeem the issue on or after Sept. 1, 2021 at par plus accrued interest.
The notes will list on the New York Stock Exchange.
Proceeds will be used to redeem all or a portion of the $661.25 million of outstanding 7.5% $25-par notes due 2051. Any remaining funds will be used to pay down additional debt or for other general corporate purposes.
Qwest is a Denver-based telecommunications company owned by CenturyLink Inc.
Issuer: | Qwest Corp.
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Securities: | Senior notes
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Amount: | $850 million
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Greenshoe: | $127.5 million
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Maturity: | Sept. 1, 2056
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Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC
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Coupon: | 6.5%
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Price: | Par of $25
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Yield: | 6.5%
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Talk: | 6.5% to 6.625%
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Call options: | On or after Sept. 1, 2021 at par plus accrued interest
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Pricing date: | Aug. 11
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Settlement date: | Aug. 22
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Expected ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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Expected listing: | NYSE
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Cusip: | 74913G881
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