New Issue: Cincinnati Bell upsizes to $500 million, 10-year notes yield 7 ¼%

By Paul A. Harris

St. Louis, July 2 - Cincinnati Bell Inc. priced an upsized offering of $500 million (from $300 million) of senior notes due July 15, 2013 (B2/CCC+) at par, Wednesday, to yield 7 ¼%, according to a syndicate source.

Price talk was 7 ½% area.

Credit Suisse First Boston, Banc of America Securities and Goldman Sachs were joint bookrunners on the Rule 144A deal. The co-managers were Wachovia Securities, PNC, RBC, Key Bank and Fleet Securities.

Proceeds will be used to repay debt outstanding under the company's term and revolving credit facilities.

The issuer, formerly Broadwing Communications Services, Inc., provides telecommunications products and services to residential and business customers in Ohio, Kentucky and Indiana.

Issuer:	Cincinnati Bell Inc.
Amount:	$500 million (increased from $300 million)
Maturity:	July 15, 2013
Security description:	Senior notes
Bookrunners:	Credit Suisse First Boston, Banc of America Securities, Goldman Sachs
Co-managers:	Wachovia Securities, PNC, RBC, Key Bank, Fleet Securities
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	372 basis points
Call features:	Callable on July 15, 2008 at 103.625, 102.417, 101.208, par on July 15, 2011 and thereafter
Equity clawback:	Until July 15, 2006 for 35% at 107.25
Settlement date:	July 11, 2003
Ratings:	Moody's: B2 (positive)
	Standard & Poor's: CCC+ (positive)
Price talk:	7½% area

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