Windstream talks $1.4 billion eight-year secured notes in 8% area; pricing expected Tuesday

By Paul A. Harris

Portland, Ore., Aug. 10 – Bankrupt Windstream Communications talked its $1.4 billion offering of eight-year first-lien senior secured notes (B3/B) to yield in the 8% area, a market source said on Monday.

The Rule 144A and Regulation S for life offering was heard to be playing to $3 billion of orders on Monday afternoon, and is expected to price on Tuesday, the source added.

The exit financing deal ran a roadshow and had been in the market with initial guidance in the 8¼% area.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Truist Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunners.

The notes come with three years of call protection.

The issuing entities will be Windstream Escrow LLC, Windstream Escrow Finance and WINMQ Equity Corp.

Proceeds, together with anticipated proceeds from other exit financing transactions including a new term loan and revolver, plus cash on hand, will be used to repay the Little Rock, Ark.-based voice and data network services provider's existing facilities incurred under the superpriority secured debtor-in-possession credit agreement, as well as to fund other distributions provided for under the restructuring plan and pay fees and expenses related to its emergence from bankruptcy.

Windstream, which filed for Chapter 11 bankruptcy protection in February 2019, is expected to exit bankruptcy in late August or September.

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