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CenturyLink Commences Debt Tender Offer And Concurrent Debt Offering

Stocks in this article: CTL

MONROE, La., Oct. 1, 2012 /PRNewswire/ -- CenturyLink, Inc. (NYSE:  CTL) and its wholly-owned subsidiary Qwest Communications International Inc. ("Qwest") announced today the commencement of a debt tender offer by Qwest and a concurrent public offering of CenturyLink's senior debt securities.  These transactions, when coupled with the pending and proposed redemption transactions discussed below, are intended to enable CenturyLink to:

  • extend the average maturity and reduce the weighted average interest rate of its outstanding consolidated indebtedness; and
  • retire Qwest's outstanding debt securities (although Qwest's subsidiaries will continue to carry a significant amount of indebtedness).

Qwest Tender Offer

Qwest has commenced a debt tender offer (the "Offer") to purchase for cash any and all of its $800 million aggregate principal amount of 7.125% Notes due 2018 (the " Notes") at a fixed purchase price of $1,069.47 per $1,000 principal amount of Notes (the "Purchase Price").  The Offer will expire at 5:00 p.m., New York City time, on October 9, 2012 (such date and time, as may be extended, the "Expiration Date").

Holders of Notes validly tendered and not validly withdrawn at or prior to the Expiration Date will be eligible to receive the Purchase Price on the settlement date, which is expected to be October 10, 2012 (the "Settlement Date").  Payments for Notes purchased will include accrued interest up to, but not including, the Settlement Date.  

Qwest will not be obligated to accept for purchase any Notes pursuant to the Offer unless certain conditions are satisfied, including CenturyLink's receipt of net proceeds from one or more debt financing transactions, including the debt offering described below, in an amount sufficient, together with available cash and borrowings available to Qwest under CenturyLink's revolving credit facility not to exceed $250 million, to fund the purchase of all validly tendered Notes accepted for purchase pursuant to the Offer, to pay all accrued interest payable on the Notes purchased and to pay all expenses relating to the Offer.  The Offer is not contingent upon the tender of any minimum principal amount of Notes.

On or immediately following the closing date of CenturyLink's debt offering described below, Qwest intends to call for redemption any Notes not purchased pursuant to the Offer in accordance with the "make-whole" redemption provisions of the Notes.

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