Strong demand increases
Qwest debt sale
By Ross Wehner, Staff Writer
Thursday, June 9, 2005
Qwest upped its debt sale Wednesday from $1.25 billion to $1.75 billion, making it the largest such sale since the junk bond market tumbled in March.
The strong demand boosts Qwest and reflects well on the high-yield bond market, said Janco Partners analyst Donna Jaegers.
"There's more appetite out there for bonds," she said. "People also have confidence in Qwest."
The $1.75 billion in new debt will allow Qwest to refinance older debt at more attractive rates.
Qwest also upped the amount of older bonds it will buy back to $1.65 billion, from $900 million.
The money gained from the refinancing will boost Qwest's cash holdings as the Denver-based phone company reportedly considers strategic acquisitions of XO Communications and other telecoms. Qwest held $1.4 billion in cash as of March 31.
"They don't necessarily need all this money," Jaegers said. "But they are hitting the market at a good time."
Staff writer Ross Wehner can be reached at 303-820-1503 or email@example.com.