Qwest gives early results in tender offer for 7.9% notes, 7¼% notes

By Jennifer Chiou

New York, March 10 - Qwest Communications International Inc. said its subsidiary, Qwest Capital Funding, has obtained early tenders for $959.5 million total of notes in its offer to purchase for cash all $1.2 billion of two outstanding debt securities. The affected securities include $402,923,000 of 7.9% notes due 2010 and $800.98 million of 7¼% notes due 2011.

Specifically, the company obtained tenders for $338 million, or about 84%, of the 7.9% notes and $621.5 million, or roughly 78%, of the 7¼% notes.

The early tenders were accepted for purchase on March 10.

The offer is scheduled to expire at 5 p.m. ET on March 24. It began on Feb. 24.

Qwest Communications has guaranteed these notes.

The consideration for each $1,000 of notes tendered and accepted is $996.25 for the 7.9% notes and $1,016.25 for the 7¼% notes. Those who tendered by 5 p.m. ET on March 9 also received an early participation payment of $30.00 per $1,000 of notes.

Interest will be paid in cash up to but excluding the payment date, which was March 10 for those who tendered by March 9 and will be March 25 for all remaining participants.

Bank of America Merrill Lynch (toll-free, 888 292-0070, or collect, 646 855-3401) and Morgan Stanley (toll-free, 800 624-1808, or collect, 212 761-5384) are the dealer managers for the tender offer. D.F. King & Co., Inc. (800 829-6551) is the information agent.

Qwest is a Denver-based telecommunications company.

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