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Mark Donahue Mark Donahue is an associate editor for Telephony magazine. Previously, he worked in The Associated Press’ Chicago bureau, as well as two trade publications. He graduated from...more

Qwest gets $1B line of credit

Qwest Communications International Inc. Announces New $1.035 Billion Revolving Credit Facility


DENVER, Dec. 21, 2009 – Qwest Communications International Inc. (NYSE:Q) today announced that it has entered into a new revolving credit facility. The new $1.035 billion agreement expires on Sept. 30, 2013, and replaces the company’s pre-existing revolving credit agreement that was scheduled to expire on Oct. 21, 2010. Wachovia Bank, National Association – an affiliate of Wells Fargo Securities, LLC – acts as administrative agent under the new agreement.


The new credit agreement is currently un-drawn. If drawn, proceeds would be used to provide liquidity for general corporate purposes, including working capital, capital expenditures and debt refinancing. Any amounts drawn on the new agreement are guaranteed by the Qwest Services Corporation (QSC) subsidiary and are secured by a senior lien on the stock of the Qwest Corporation (QC) subsidiary. The bank syndication supporting the new agreement is comprised of a diverse group of 13 banks.


“Every one of our 13 existing revolving credit facility banks reaffirmed or increased its existing commitment to the new revolving credit facility,” said Joseph J. Euteneuer, executive vice president and chief financial officer for Qwest. “This support enabled Qwest to increase the size of its revolving credit facility by 22 percent from the previous facility’s initial $850 million. Given the challenging economy and credit environment, we greatly appreciate the continued support of our banking partners.”


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Forward-Looking Statement Note


This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives, among others; our substantial indebtedness, and our inability to complete any efforts to further de-lever our balance sheet; adverse results of increased review and scrutiny by media and others (including any internal analyses) of financial reporting issues and practices or otherwise; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the effects of consolidation in our industry; changes in demand for our products and services; acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; changes in the outcome of future events from the assumed outcome included in our significant accounting policies; our ability to utilize net operating losses in projected amounts; and continued unfavorable general economic conditions, including the current financial crisis.


The information contained in this release is a statement of Qwest’s present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest’s assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest’s assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts’ estimates and other information prepared by third parties for which Qwest assumes no responsibility.


Qwest undertakes no obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements and other statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.


By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.


The marks that comprise the Qwest logo are registered trademarks of Qwest Communications International Inc. in the U.S. and certain other countries.


Contact Information:


Media Contact

Diane Reberger


303-992-1662


diane.reberger@qwest.com


Investor Contact

Rahn Porter

303-896-0263

rahn.porter@qwest.com

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