Qwest announces early participation results in tender for $904 million of notes

New York, June 21 - Qwest Communications International Inc. announced the response received by the early participation deadline in the tender offer that it and its Qwest Corp. and Qwest Services Corp. subsidiaries are conducting for up to $904 million principal amount of their debt.

By the deadline of 5 p.m. ET on June 20, investors had tendered $210.3 million or 84% of Qwest Corp.'s $250 million of 6 5/8% notes due 2005, $128.8 million or 86% of Qwest Corp.'s $150 million of 6 1/8% notes due 2005 and $451.7 million or 90% of Qwest Services' $504.103 million of 13% senior subordinated secured notes due 2007.

Qwest settled the tender Tuesday for notes tendered by the early deadline.

As announced Monday, for Qwest Services' $504.103 million of 13% senior subordinated secured notes due 2007, the price is $1,082.62 per $1,000 principal amount, for Qwest Corp.'s $250 million of 6 5/8% notes due 2005 it is $981.50 per $1,000 principal amount and for Qwest Corp.'s $150 million of 6 1/8% notes due 2005 it is $984.17 per $1,000 principal amount.

All prices include a $25.00 per $1,000 early participation payment.

Qwest announced the offer on June 7.

It said pricing for each series of notes would be set at 2 p.m. ET on June 20 to give a yield to maturity or yield to the first call date of 50 basis points over the yield on the reference Treasury, minus accrued interest up to the first purchase date, expected to be June 21.

The total includes a $25.00 per $1,000 early participation payment that will only be paid to holders who tender by 5 p.m. ET on June 20. The tender ends at midnight ET on July 5.

Qwest will also pay accrued interest up to but excluding the settlement date.

For the Qwest Services 13% notes, the reference security is the 1.875% Treasury due Nov. 30, 2005 and the earliest redemption date is Dec. 15, 2005. For the Qwest Corp. 6 5/8% notes, the reference security is the 2% Treasury due Aug. 31, 2005 and the maturity date is Sept. 15, 2005 while for the Qwest Corp. 6 1/8% notes the reference security is the 5.75% Treasury due Nov. 15, 2005 and the maturity date is Nov. 15, 2005.

The Denver-based telecommunications company said that there is no minimum condition to the tender but the offers are subject to completion of an offering of $1.25 billion of new notes.

The information agent is Global Bondholder Services Corp. (866 488-1500 or call collect 212 430-3774).

Merrill Lynch and Co. (888 ML4-TNDR or call collect 212 449-4914) and Deutsche Bank Securities (call collect 212 250-4270) are dealer managers.

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