By Stephanie N. Rotondo
Seattle, April 18 – Qwest Corp. sold $575 million of 6.75% $25-par notes due 2057 at par on Tuesday, a market source reported.
The deal came in line with price talk but was upsized from $250 million.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities LLC are the joint bookrunners.
The notes (Ba1/BBB-) become redeemable on or after June 15, 2022 at par plus accrued interest.
The new securities will be listed on the New York Stock Exchange.
Proceeds will be used with available cash or intercompany borrowings to redeem all $500 million of the 6.5% notes coming due June 1 and all $288.5 million of the 7.5% $25-par notes due 2051 (NYSE: CTW).
The redemption of the maturing notes will be done at a premium.
Qwest is a Denver-based telecommunications carrier and unit of CenturyLink Inc.
| Issuer: | Qwest Corp.
|
| Securities: | Notes
|
| Amount: | $575 million
|
| Maturity: | June 15, 2057
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities LLC
|
| Coupon: | 6.75%
|
| Price: | Par of $25
|
| Yield: | 6.75%
|
| Talk: | 6.75%
|
| Call options: | On or after June 15, 2022 at par plus accrued interest
|
| Pricing date: | April 18
|
| Settlement date: | April 27
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Expected listing: | NYSE
|
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