U.S. Cellular talks $100 million notes due 2060 at 7%-7.125% dividend

By Stephanie N. Rotondo

Portland, Ore., May 9 - United States Cellular Corp. intends to issue $25-par senior unsecured notes, according to a prospectus filed with the Securities and Exchange Commission on Monday.

A market source said $100 million, or 4 million notes, are expected to be sold. Price talk is 7% to 7.125%.

The notes (Baa2/BBB-/BBB), which mature May 2060, can be redeemed in 2016 at par plus accrued and unpaid dividends.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

RBC Capital Markets LLC, BNY Mellon Capital Markets LLC, Comerica Securities, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc. are the co-managers.

Proceeds will be used to redeem some or all of the company's outstanding 7.5% senior notes due 2034 and for general corporate purposes.

The company intends to list the notes on the New York Stock Exchange within 30 days of issuance.

U.S. Cellular is a Chicago-based telecommunications provider.

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