New Issue: Windstream $500 million 12-year senior notes yield 7%

By Paul A. Harris

St. Louis, Feb. 12 - Windstream Corp. priced a $500 million issue of 12-year senior notes (Ba3/BB-) at par to yield 7% in a quick-to-market Monday transaction, according to an informed source.

The yield came on top of price talk.

Merrill Lynch & Co. ran the books for the issue, which was priced via Rule 144A with registration rights and via Regulation S.

Proceeds will be used to repay term loan debt.

Little Rock, Ark.-based Windstream provides voice, broadband and entertainment services to customers in 16 states.

Issuer:	Windstream Corp.
Amount:	$500 million
Maturity:	March 15, 2019
Security description:	Senior notes
Bookrunner:	Merrill Lynch & Co.
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	220 bps
Call features:	Callable on March 15, 2012 at 103.50, 102.333, 101.167, par on and after March 15, 2015
Equity clawback:	Until March 15, 2010 for 35% at 107
Trade date:	Feb. 12
Settlement date:	Feb. 27
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	7% area

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