New Issue: Cincinnati Bell prices $350 million in two parts

By Paul A. Harris

St. Louis, Feb. 2 - Cincinnati Bell Inc. sold $350 million of high-yield bonds in two tranches on Wednesday, according to a syndicate source.

The company priced $250 million of new 10-year senior notes (B1/B-) at par to yield 7%. Price talk was 6 7/8% to 7 1/8%.

Cincinnati Bell also priced a $100 million add-on to its 8 3/8% senior subordinated notes due Jan. 15, 2014 (B3/B-) at 102, resulting in a 7.991% yield to worst and an 8.054% yield to maturity. Price talk was 101.5 to 102. The original $540 million issue priced at par on Oct. 31, 2003.

Banc of America Securities LLC, Credit Suisse First Boston and Lehman Brothers ran the books for the Rule 144A issue. BNY Securities, Deutsche Bank Securities, Harris Securities, ING, KeyBank Securities, Goldman Sachs & Co., Merrill Lynch & Co., Morgan Stanley, PNC, The Royal Bank of Scotland, SG Corporate & Investment Banking and Wachovia Securities were co-managers.

Proceeds will be used to repurchase the company's 16% senior subordinated discount notes due 2009.

Cincinnati Bell restructured the issue from an originally planned single $350 million tranche of 10-year senior unsecured notes.

The issuer is the parent to Cincinnati Bell, a local exchange and wireless provider to residential and business customers in Ohio, Kentucky and Indiana, based in Cincinnati.

Issuer:	Cincinnati Bell Inc.
Amount:	$350 million
Bookrunners:	Banc of America Securities, Credit Suisse First Boston, Lehman Brothers
Co-managers:	BNY Securities, Deutsche Bank Securities, Harris Securities, ING, KeyBank Securities, Goldman Sachs & Co., Merrill Lynch & Co., Morgan Stanley, PNC, The Royal Bank of Scotland, SG Corporate & Investment Banking and Wachovia Securities were co-managers.
Trade date:	Feb. 2
Settlement date:	Feb. 16
Senior notes
Amount:	$250 million
Maturity:	Feb. 15, 2015
Security description:	Senior notes
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	285 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until Feb. 15, 2010, then callable at 103.50, 102.333, 101.167, par on and after Feb. 15, 2013
Equity clawback:	Until Feb. 15, 2008 for 35% at 107.0
Ratings:	Moody's: B1
	Standard & Poor's: B-
Price talk:	6 7/8%-7 1/8%
Add-on
Amount:	$100 million
Maturity:	Jan. 15, 2014
Security description:	Add-on to the 8 3/8% senior subordinated notes
Coupon:	8 3/8%
Price:	102
Yield to worst:	7.991%
Yield to maturity:	8.054%
Spread to worst:	399 basis points
Spread to maturity:	410 basis points
Call features:	Callable after Jan. 15, 2008 at 104.188, 102.792, 101.396, par on and after Jan. 15, 2011
Equity clawback:	Until Jan. 15, 2007 for 35% at 108.375
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	101.5-102

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