CenturyLink In Market With 3-Part Bond Offering -Sources
09 Juin 2011 - 4:46PM
Dow Jones News
Internet and telecommunications giant CenturyLink Inc. hit the
market with a three-part debt offering Thursday, in part to help
fund its $2.5 billion acquisition of cloud technology company
Savvis Inc., according to people familiar with the transaction.
The offering of senior notes will be benchmark in size, meaning
at least $500 million in bonds are expected to be sold, these
people added.
It will comprise new six-year and 10-year notes, and a reopening
of the company's existing 7.6% bonds due 2039. Some $400 million of
the 2039 bonds are outstanding.
The new debt is expected to be rated Baa3 by Moody's Investors
Service, BB by Standard & Poor's and BBB-minus by Fitch
Ratings. As well as the merger with Savvis, proceeds may be used
for general corporate purposes, such as retiring debt.
Barclays Capital and Bank of America Merrill Lynch are leading
the sale targeted at institutional buyers. Supporting the deal are
J.P. Morgan Chase and Wells Fargo.
Qwest Communications, a wholly owned subsidiary of CenturyLink,
was in the market last month with 40-year bonds sold predominantly
to individual or "retail" investors. Proceeds of that deal were
aimed at retiring 7.875% bonds maturing later this year.
A CenturyLink representative had no immediate comment.
-By Katy Burne, Dow Jones Newswires; 212-416-3084;
katy.burne@dowjones.com
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