By Andrea Heisinger
New York, June 10 - CenturyLink, Inc. priced $2 billion of senior notes (Baa3/BB/BBB-) in three parts late on Thursday, according to a press release and FWP filings with the Securities and Exchange Commission.
A $350 million tranche of 5.15% six-year notes priced at 99.75 to yield 5.199%, or Treasuries plus 360 basis points.
A $1.25 billion tranche of 6.45% 10-year notes sold at 99.659 to yield 6.497%, or 350 bps over Treasuries.
The company also reopened its 7.6% notes due 2039 to add $400 million. The notes were priced at 95.377 to yield 8.014% with a spread of Treasuries plus 380 bps.
Total issuance is $800 million, including $400 million sold on Sept. 14, 2009 at 275 bps over Treasuries.
The notes all have a make-whole call at 50 bps over Treasuries and feature a change-of-control put at 101%.
Active bookrunners were Barclays Capital Inc. and Bank of America Merrill Lynch. Passive bookrunners were J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds, along with cash on hand and borrowings under a credit facility, are going to fund the $2.5 billion Savvis Inc. merger consideration, refinance Savvis' credit facility and pay merger fees and expenses.
The integrated communications company is based in Monroe, La.
| Issuer: | CenturyLink, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch (active), J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | June 9
|
| Settlement date: | June 16
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB
|
| Fitch: BBB-
|
|
|
| Six-year notes
|
| Amount: | $350 million
|
| Maturity: | June 15, 2017
|
| Coupon: | 5.15%
|
| Price: | 99.75
|
| Yield: | 5.199%
|
| Spread: | Treasuries plus 360 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 15, 2021
|
| Coupon: | 6.45%
|
| Price: | 99.659
|
| Yield: | 6.497%
|
| Spread: | Treasuries plus 350 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| Bonds due 2039
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2039
|
| Coupon: | 7.6%
|
| Price: | 95.377
|
| Yield: | 8.014%
|
| Spread: | Treasuries plus 380 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Original issuance: | $400 million sold Sept. 14, 2009 at 275 bps spread
|
© 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.
