CenturyLink doubles Qwest debt offer to $1.08B

CenturyLink's (NYSE: CTL) Qwest subsidiary has increased the size of its debt buyback offer to $1.08 billion as part of a move to reduce its interest payments.

The new tender offer follows word that Qwest's initial repurchase of up to $500 million in principal from two elements of debt due in 2015 and 2016 was oversubscribed.

On Tuesday, Qwest said it was going to increase the offer for the notes due in 2016 from $330 million to $580 million. Qwest added that it will pay for the offering with its own cash on hand or by getting more funds from its revolving credit facility.

Similarly, CenturyLink's Embarq Corp. subsidiary made a tender offering in early March. In the tender offer, Embarq Corp. proposed to repurchase notes that are due in 2013 and 2016 with about $2.5 billion in outstanding principal.

For more:
- see the release
- Dow Jones Newswires via Wall Street Journal has this article

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