New Issue: Windstream prices $500 million 10-year notes at par to yield 7¾%

By Paul A. Harris

St. Louis, Sept. 22 - Windstream Corp. priced a $500 million issue of 10-year senior notes (Ba3/B+) at par to yield 7¾% on Wednesday, according to an informed source.

The yield printed on top of the price talk.

Bank of America Merrill Lynch, Barclays Capital, Citigroup, JP Morgan, RBS Securities and Wells Fargo Securities were the joint bookrunners for the quick-to-market sale.

The Little Rock, Ark.-based provider of telephone and internet services will use the proceeds, together with cash on hand, to fund the acquisition of Q-Comm, an Overland Park, Kan.-based fiber transport and local exchange carrier.

Issuer:	Windstream Corp.
Issue:	Senior notes
Amount:	$500 million
Maturity:	Oct. 15, 2020
Bookrunners:	Bank of America Merrill Lynch, Barclays Capital, Citigroup, JP Morgan, RBS Securities, Wells Fargo Securities
Co-managers:	BNP Paribas, SunTrust Robinson Humphrey
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	523 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 15, 2015, then callable at 103.875, 102.583, 101.292, par on or after Oct. 15, 2018
Equity clawback:	35% at 107.75 until Oct. 15, 2013
Change of control:	Put at 101
Trade date:	Sept. 22
Settlement date:	Oct. 6
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7¾% area
Marketing:	Quick to market

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