CenturyLink sells $350M senior notes to help fund Savvis acquisition

CenturyLink (NYSE: CTL) is going to sell $350 million of newly-issued unsecured six year senior notes and $1.25 billion of 10-year senior notes to help fund its Savvis acquisition.

The six year notes were priced at 99.750 percent of par with a coupon of 5.15 percent or an effective yield to maturity of 5.199 percent, while the 10-year notes were priced at 99.659 percent of par with a coupon of 6.45 percent or an effective yield to maturity of 6.497 percent.

CenturyLink will combine the proceeds of the new offering with cash on hand to fund the cash portion of its acquisition of Savvis, which it says will close in the second half of this year.

This move comes on the heels of its new subsidiary Qwest's plans to sell $575 million aggregate principal amount of 7.375 percent of notes due in 2051.

For more:
- see the release

Related articles:
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CenturyLink sees Qwest merger as path to facilitate business, broadband growth

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