Qwest greenshoe lifts 6.5% $25-par notes due 2056 to $977.5 million

By Susanna Moon

Chicago, Aug. 22 – Qwest Corp. underwriters fully exercised the $127.5 million over-allotment option on the company’s 6.5% $25-par senior notes due Sept. 1, 2056 on Monday.

This brings the total deal size to $977.5 million, according to an 8-K filing with the Securities and Exchange Commission.

As reported, Qwest sold $850 million of the notes (expected ratings: Ba1/BBB-/BBB-) at par on Aug. 11 with price talk of 6.5% to 6.625%.

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.

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