Qwest Corporation Sells a New Baby Bond Issue

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Qwest Corporation, a wholly owned subsidiary of CenturyLink Inc., has sold a new $25 note issue of 7% baby bonds

This “refinancing” issue will produce proceeds that will be combined with Qwest Corporation’s cash on hand to call back an existing 8.375% note that is scheduled to mature on May 1, 2016. The new issue will have a normal five-year optional redemption period that will allow the company to call in the bonds at the option of its management as early as February 1, 2021. 

An issuer typically will call in the bonds early in a “refinancing” transaction on the optional call date if they can issue new bonds for a coupon at least ¼ to ½% below the coupon on the existing bonds. The newly issued baby bonds have a maturity date of February 1, 2056, and its shares already are trading on the NYSE under the ticker symbol CTAA. 

Complete details of this issue can be found here

Qwest Corporation has seven other baby bond issues outstanding with coupons ranging from 6.125% to 7.375%. Potential buyers should review these issues before determining which issue might fit their needs best. You can check out these bond issues easily on our baby bond page.


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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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