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Nearly $1B in Qwest notes tendered by early deadline

Denver Business Journal

March 10, 2010


Qwest Communications International Inc. said Wednesday that $959.9 million in notes were tendered by Tuesday's early-participation deadline in a $1.2 billion tender offer announced Feb. 24.

The early tenders included $338 million in 7.9 percent notes maturing this year, representing 84 percent of the outstanding notes' principal; and $621.5 million in 7.25 percent notes maturing in 2011, 78 percent of the principal of those outstanding notes.

The early-participation deadline expired at 3 p.m. MST Tuesday. Qwest (NYSE: Q) had offered a $30-per-$1,000 bonus for notes tendered by then.

The overall tender offer by the Denver-based telecom's Qwest Capital Funding unit expires at 3 p.m. MDT March 24.

Qwest is offering $996.25 per $1,000 in principal on the 2010 notes, and $1,016.25 per $1,000 on the 2011 notes.

Holders of the notes were sent terms and conditions of the offer. Copies may be obtained from D.F. King & Co. Inc., at 800-829-6551 or by emailing

BofA Merrill Lynch and Morgan Stanley are the dealer managers for the tender offer. For questions, call BofA Merrill Lynch at 888-292-0070 or Morgan Stanley at 800-624-1808.

In January, Qwest sold $800 million in new debt securities, which mature in 2018 and will help it pay down some of the nearly $4 billion in company debt coming due in 2010 and 2011.

Last year, the company paid down another $562 million of Qwest Capital Finance debt that was scheduled to mature Aug. 3, 2009. | The DBJ's Greg Avery contributed reporting.