Windstream wraps tenders for 37.9% of 7¾% notes issued by Valor units

By Susanna Moon

Chicago, Feb. 7 - Windstream Corp. said it completed the cash tender offer for the $400 million of outstanding 7¾% senior notes due 2015 issued by its wholly owned subsidiaries Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp.

Windstream said it had received tenders for $151,625,000 principal amount, or 37.9%, of the outstanding notes as of midnight ET on Feb. 4, the expiration date. The offer began on Jan. 7.

Of that amount, $151,376,000 had been tendered by the early deadline of 5 p.m. ET on Jan. 21, and the company paid for them on Jan. 24.

The company said it expected to pay for the notes tendered after the early date on Feb. 7.

Holders who tendered their notes by the early tender date received the total payment of $1,025.83 for each $1,000 principal amount of notes, including an early tender fee of $25.83.

Those who tendered their notes after the early date will forgo the early tender payment.

The company also said it will pay accrued interest to but excluding the settlement date.

Windstream plans to redeem the remaining $248,375,000 principal amount of outstanding notes on Feb. 23. The company previously said it would redeem the notes at 102.583 plus accrued interest to the redemption date.

The tender offer was conditioned on the completion of a debt financing that would fund about 50% of the total purchase price. The offer was not conditioned on the tender of a minimum principal amount of notes, and the company did not solicit consents from noteholders.

Windstream priced a $200 million add-on to its 7¾% senior notes due Oct. 15, 2020 at 103 on Jan. 7, resulting in a 7.233% yield to worst.

J.P. Morgan Securities LLC (800 245-8812 or collect at 212 270-1200) and Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-0858) were the dealer managers for the tender offer. The Bank of New York Mellon was the depositary, and i-Deal LLC (888 593-9546 or 212 849-5000) was the information agent.

Windstream is a Little Rock, Ark.-based communications and technology company that provides IP-based voice and data services, MPLS networking, data center and managed hosting services and communication systems to businesses and government agencies.

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