CenturyLink Completes Private Offering of Senior Notes
Notices Furnished to Redeem Qwest Corporation Notes with Net Proceeds
CenturyLink, Inc. announced that it entered into an indenture and supplemental indenture with Regions Bank, as trustee, in connection with completing its previously-announced sale of $1.25 billion aggregate principal amount of newly-issued unsecured 5.125% Senior Notes due 2026 (the “2026 Notes”).
The net proceeds from the offering of the 2026 Notes will be used (i) to redeem all of Qwest Corporation’s $850 million outstanding aggregate principal amount of 6.875% senior notes due 2033 (the “2033 Notes”) and all of Qwest Corporation’s $250 million outstanding aggregate principal amount of 7.125% senior notes due 2043 (the “2043 Notes,” and together with the 2033 Notes, the “Qwest Notes”) and (ii) for general corporate purposes, including redemptions, repurchases or repayments of CenturyLink debt. Qwest Corporation is an indirect, wholly owned subsidiary of CenturyLink.
In connection with completing the offering, Qwest Corporation issued notices to redeem all of the Qwest Notes. Pursuant to these notices, on Jan. 15, 2020:
- All of the 2033 Notes will be redeemed at a redemption price equal to 100.390% of par plus accrued and unpaid interest of approximately $22.92 per $1,000 principal amount of the 2033 Notes, and
- All of the 2043 Notes will be redeemed at a redemption price equal to 101.644% of par plus accrued and unpaid interest of approximately $11.88 per $1,000 principal amount of the 2043 Notes.
Additional information regarding the redemption of the Qwest Notes is available from The Bank of New York Mellon Trust Company, National Bank. This press release does not constitute a notice of redemption with respect to the Qwest Notes.
Based upon current circumstances and information, CenturyLink expects to account for these refinancing transactions primarily as an extinguishment of debt and expects that any gain or loss from the transactions will not be material to its financial results.