Published on 12/9/2019 in the Prospect News High Yield Daily.
New Issue: CenturyLink prices upsized $1.25 billion seven-year notes at par to yield 5 1/8%
By Abigail W. Adams
Portland, Me., Dec. 9 – CenturyLink, Inc. priced an upsized $1.25 billion of seven-year senior notes (B2/B+/BB) at par to yield 5 1/8% in a Monday drive-by, according to market sources.
Pricing came on the tight sight of official price talk in the 5¼% area. Initial guidance was in the low to mid 5% area, according to a market source.
The initial size of the deal was $750 million.
Citigroup Global Markets Inc. is lead left bookrunner for the Rule 144A and Regulation S for life offering.
BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., MUFG, Regions Securities Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are also bookrunners.
The notes are non-callable until Dec. 15, 2022 with first call at 102.563%.
There is an equity clawback of 40% at 105.125% until Dec. 15, 2022 and a poison put at 101%.
Proceeds, together with cash on hand, will be used to refinance $850 million of the Qwest 6 7/8% senior notes due 2033, which are callable at 100.39.
CenturyLink is a Monroe, La.-based global technology company.
| Issuer: | CenturyLink, Inc.
|
| Amount: | $1.25 billion, upsized from $750 million
|
| Maturity: | Dec. 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc. (lead left), BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets Corp., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., MUFG, Regions Securities Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 338 bps
|
| Call protection: | Non-callable until Dec. 15, 2022, then at 102.563 on first call date
|
| Trade date: | Dec. 9
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| Settlement date: | Dec. 16
|
| Ratings: | Moody's: B2
|
| S&P: B+
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| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5¼% area; initial talk low to mid 5%
|
| Marketing: | Quick to market
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