Published on 11/23/2020 in the Prospect News High Yield Daily.
New Issue: Lumen prices upsized $1 billion eight-year notes at par to yield 4½%
By Paul A. Harris
Portland, Ore., Nov. 23 – Lumen Technologies Inc. (formerly CenturyLink, Inc.) priced an upsized $1 billion issue of eight-year senior notes (B2/BB-) at par to yield 4½% in a Monday drive-by, according to market sources.
The issue size was increased from $750 million.
The yield printed in the middle of yield talk in the 4½% area. Initial guidance was in the 4¾% area.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., Mizuho Securities USA Inc., TD Securities (USA) LLC, Truist Securities Inc., Citizens Capital Markets Inc., MUFG, Deutsche Bank Securities Inc. and Regions Securities LLC.
The Monroe, La.-based telecom plans to use the proceeds, including the additional proceeds resulting from the $250 million upsizing of the deal, to call the entire $775 million amount of outstanding 6 1/8% Qwest Corp. notes due 2053 at par and to repay $225 million of revolver debt maturing in 2025.
| Issuer: | CenturyLink, Inc.
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Jan. 15, 2029
|
| Securities: | Senior notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., Mizuho Securities USA Inc., TD Securities (USA) LLC, Truist Securities Inc., Citizens Capital Markets Inc., MUFG, Deutsche Bank Securities Inc. and Regions Securities LLC
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 387 bps
|
| First talk: | Jan. 15, 2024 at 102.25
|
| Equity clawback: | 40% at 104.5 until Jan. 15, 2024
|
| Trade date: | Nov. 23
|
| Settlement date: | Nov. 27
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4½% area
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
