New Issue: Telephone & Data sells $200 million 6.875% notes due 2059 at par of $25

By Andrea Heisinger

New York, Nov. 16 - Telephone & Data Systems, Inc. priced $200 million, or 8 million, of 6.875% senior notes due 2059 on Tuesday morning at par of $25, a source close to the sale said.

The notes (Baa2/BBB-/BBB) are callable on or after Nov. 15, 2015 at par plus accrued and unpaid interest. The issue has an over allotment option of $30 million to be exercised within 30 days.

Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities Inc. and Wells Fargo Securities LLC.

RBC Capital Markets Corp., BNY Mellon Capital Markets LLC, Comerica Securities, Inc., SunTrust Robinson Humphrey Inc., TD Securities USA LLC and U.S. Bancorp Investments Inc. were the co-managers.

Proceeds are going to redeem some or all of $500 million outstanding 7.6% notes due 2041.

The telecommunications services company is based in Chicago.

Issuer:	Telephone & Data Systems, Inc.
Issue:	Senior notes
Amount:	$200 million (8 million notes)
Greenshoe:	$30 million, within 30 days
Maturity:	Nov. 15, 2059
Bookrunners:	Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities Inc., Wells Fargo Securities LLC
Co-managers:	RBC Capital Markets Corp., BNY Mellon Capital Markets LLC, Comerica Securities, Inc., SunTrust Robinson Humphrey Inc., TD Securities USA LLC, U.S. Bancorp Investments Inc.
Coupon:	6.875%
Price:	Par of $25
Yield:	6.875%
Call:	On or after Nov. 15, 2015 at par plus accrued interest
Trade date:	Nov. 16
Settlement date:	Nov. 23
Ratings:	Moody's: Baa2
	Standard & Poor's: BBB-
	Fitch: BBB

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