CenturyLink Announces Completion of Debt Tender Offer for Qwest Notes

Source: CenturyLink Press Release

CenturyLink, Inc. (NYSE:CTL) announced the completion of the previously announced debt tender offer commenced on March 21, 2012 by its wholly-owned subsidiary, Qwest Corporation, for Qwest Corporation's two series of note, which expired at 12:00 midnight, New York City time, on April 17, 2012.

As of the Expiration Date, approximately $883.6 million aggregate principal amount of the Notes had been validly tendered and not validly withdrawn, and Qwest Corporation accepted for purchase all of these Notes in exchange for aggregate tender offer consideration of approximately $1.088 billion, including $30.4 million of accrued interest.

Qwest Corporation expects to record in the second quarter of 2012 a one-time pre-tax charge to net income of approximately $46 million related to premiums paid to tendering holders of Notes and estimated transaction costs associated with the Offer.

Former Qwest CEO Ed Mueller Resigns from CenturyLink Board

Source: Denver Post

According to an article in the Denver Post, Ed Mueller, who served as Qwest’s chairman and chief executive from to August 2007 to April 2011, will resign from CenturyLink’s board effective May 23. His term was scheduled to end in 2013. Mueller assumed his spot on the board after CenturyLink acquired Qwest in April 2011.

The Denver Post reported that since the merger closed, CenturyLink has quietly downsized its footprint in Denver. Sources say that while CenturyLink’s name sits atop Qwest’s former headquarters building, many of the floors in the 52-story skyscraper that Qwest once occupied are now a virtual ghost town, the article said.

CenturyLink Announces Initial Results and Upsizing of Qwest Tender Offer

Source: CenturyLink Press Release

CenturyLink, Inc. (NYSE:CTL) announced the early tender results and tender offer consideration payable in connection with the previously announced debt tender offer commenced on March 21, 2012 by its wholly-owned subsidiary, Qwest Corporation, for Qwest Corporation's two series of notes.

In addition, Qwest Corporation has amended the Offer to increase (i) the maximum aggregate purchase price (including premium but excluding accrued interest) payable in connection with the Offer from $500 million to $1.075 billion and (ii) the maximum tender amount in respect of Qwest Corporation's 8.375% Notes due 2016 from $330 million aggregate principal amount to $580 million aggregate principal amount.  All other terms of the Offer, as previously announced, remain unchanged. 

As of the previously announced early tender date and time of 5:00 p.m., New York City time, on April 3, 2012, approximately $878.2 million aggregate principal amount of the Notes had been validly tendered and not validly withdrawn.  Definitive tender offer results will not be available until after the Offer expires at 12:00 midnight, New York City time, on April 17, 2012.

As explained further in the Offer to Purchase, Qwest Corporation will, subject to the terms and conditions of the Offer, accept for purchase only $580 million aggregate principal amount of the 2016 Notes and will accept for purchase Notes in accordance with the acceptance priority levels set forth in the table above.  If there are sufficient remaining funds to purchase some, but not all, of the Notes of a particular series based on the applicable acceptance priority level, the amount of Notes purchased in that series will be accepted on a pro rata basis as further described in the Offer to Purchase.  However, as a result of the above-described amendments increasing the size of the Offer, all Notes tendered as of the Early Tender Date are eligible to be purchased (assuming no additional Notes are validly tendered after the Early Tender Date).

The consummation of the Offer is conditioned upon the satisfaction or waiver of the conditions set forth in the Offer to Purchase.  Subject to applicable law, Qwest Corporation may amend, extend, waive conditions to or terminate the Offer.

CenturyLink Announces Pricing of Notes by Qwest

Source: CenturyLink Press Release

CenturyLink, Inc. (NYSE:CTL) announced that its subsidiary, Qwest Corporation, agreed to sell $500 million aggregate principal amount of 7.50% Notes due 2051. Qwest Corporation also granted the underwriters of this offering an option to acquire up to an additional $75.0 million principal amount of these notes to cover over-allotments. The notes are callable at par on and after September 15, 2016. The closing of this offering is expected to occur on September 21, 2011.

The notes are expected to be listed on the New York Stock Exchange. Following completion of the offering, Qwest Corporation expects to use the net proceeds to redeem a portion of the $1.5 billion aggregate principal amount of its outstanding 8.875% Notes due 2012.

CenturyLink Announces Sale of 7.375% Notes by Qwest

Source: CenturyLink Press Release

CenturyLink, Inc. (NYSE:CTL) announced that its subsidiary, Qwest Corporation, agreed to sell $575 million aggregate principal amount of 7.375% Notes due 2051. Qwest Corporation also granted the underwriters of this offering an option to acquire up to an additional $86.25 million principal amount of these notes to cover over-allotments. The notes are callable at par on and after June 1, 2016. The closing is expected to occur on June 8, 2011.

The notes are expected to be listed on the New York Stock Exchange. Following completion of the offering, Qwest Corporation expects to use the net proceeds, together with borrowings from CenturyLink, to redeem all of its 7.875% Notes due 2011, of which $825 million in aggregate principal amount are outstanding.