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CenturyLink subsidiary Qwest cancels tender offer for 7.125% notes
By Angela McDaniels
Tacoma, Wash., Oct. 2 - CenturyLink, Inc. subsidiary Qwest Communications International Inc. terminated the tender offer for its $800 million of 7.125% notes due 2018, according to a company press release.
CenturyLink decided not to proceed with its plan to issue new notes, and it said this means the financing condition of the tender offer is unlikely to be satisfied. CenturyLink said it had opportunistically sought to refinance some Qwest debt but decided against the new issue in light of current market conditions.
Qwest has previously committed to redeem all $550 million principal amount of its 8% notes due 2015 on Oct. 26. It now expects to fund this redemption with borrowings under CenturyLink's revolving credit facility, according to the release.
CenturyLink and Qwest reserve the right to begin a new tender offer at a later date if market conditions become more favorable. Qwest also reserves the right to repurchase 7.125% notes from time to time through other means, including redemption transactions.
Qwest offered $1,069.47 per $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 9, the expiration date.
The offer was dependent on receiving enough proceeds from the closing of one or more debt financings as well as the availability of up to $250 million of borrowings under CenturyLink's revolving credit facility and available cash to fund the purchase. The offer was not contingent on the tender of a minimum amount of notes.
Qwest had planned to call for redemption any notes not purchased in the tender offer in accordance with the make-whole redemption provision of the notes.
J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and RBC Capital Markets, LLC (877 381-2099 or 212 618-7822) were the dealer managers. D.F. King & Co., Inc. (800 659-5550 or 212 269-5550) was the information agent.
CenturyLink is a telecommunications company based in Monroe, La.
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