Qwest to Borrow Another $3 Billion, Despite Earnings Shortfall

The deal will reportedly include three- , eight- and 20-year tranches.
Ed ZwirnJuly 24, 2001

Qwest Capital Funding is reportedly meeting with success in courting investors interested in obtaining a piece of the $3 billion offering it plans on pricing Wednesday, July 25.

Reuters reports that the Denver-based firm, which today reported widening losses, is expected to price its latest issues at five basis points over its existing debt.

While there is no official price talk on the issues, which will be sold via a private offering, the unofficial “buzz” going around New York trading desks puts the three-year tranche at 155 basis points over Treasurys, the eight year at 200 over, and the 20-year at a 218 basis point spread over Treasurys according to Standard & Poor’s MMS.

The deal will be the largest to hit the telecommunications sector since WorldCom sold a record $11.9 billion on May 9. It is also Qwest’s third foray into the bond market so far this year, the firm having sold $3.25 billion of 10- and 30-year euro bonds in ferbruary and $3 billion of five- and nine-year dollar-denominated corporates in April.