Qwest prices $25-par notes; Wells Fargo issue frees to trade, gets temporary ticker

By Stephanie N. Rotondo

Seattle, April 18 – The preferred stock primary market got another new issue added to the calendar on Tuesday as Qwest Corp. sold $575 million of 6.75% $25-par notes due 2057.

The deal came in line with price talk but was increased from $250 million.

A trader saw the paper at $24.75 bid, $24.87 offered in the early gray market.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets and Wells Fargo Securities LLC ran the books.

Proceeds will be used with available cash or intercompany borrowings to redeem all $500 million of the 6.5% notes coming due June 1 and all $288.5 million of the 7.5% $25-par notes due 2051 (NYSE: CTW).

The redemption of the maturing notes will be done at a premium. The 7.5% notes were lower in the wake of the announcement, falling 24 cents to trade at $25.29.

Meanwhile, Wells Fargo & Co.’s new $600 million issue of 5.625% series Y class A noncumulative preferreds freed to trade early Tuesday, a trader reported.

It was also assigned a temporary trading symbol, “WFGGP.”

The issue close at $25.10, versus $25.07 at the open.

The deal came Monday, upsized from $250 million and tighter than the 5.875% price talk.

Wells Fargo Securities led the deal.

The Wells Fargo Hybrid and Preferred Securities index slid 13 basis points.

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