Dex Media East downsizes, restructures note offering, talk released, pricing Wednesday

By Paul A. Harris

St. Louis, Mo., Oct. 28 - Price talk on a downsized and restructured note offering from Dex Media East LLC/Dex Media East Finance Co. emerged Monday, according to a syndicate source.

The total size of the offering is now $975 million, reduced from $1.05 billion, the source said.

The equity sponsor has committed an additional $75 million to make up the shortfall, a syndicate source said.

The deal is expected to price on Wednesday.

The seven-year senior notes (B2/B) were increased to $450 million from $350 million and are talked at 9¾% to 10%. The senior notes are non-callable for four years.

The 10-year senior subordinated notes (B3/B) were decreased to $525 million from $700 million and are talked at a yield in the 12% area. They are non-callable for five years.

Joint bookrunners are JP Morgan, Banc of America Securities, Deutsche Bank Securities Inc., Lehman Brothers and Wachovia Securities, Inc.

Bear Stearns & Co., Credit Lyonnais, ING Barings, RBS and Scotia Capital are co-managers.

Proceeds will be used to fund the first phase of the acquisition of QwestDex, Qwest Communications' yellow pages/directories business in Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota by the Carlyle Group and Welsh, Carson, Anderson & Stowe.

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