The sub-underwriting phase for QwestDex, the directories business of Qwest Communications International, picked up commitments last week, as ING Capital, Bear Stearns, Royal Bank of Scotland, Scotia Capital, Credit Lyonnais and Commerzbank took senior managing agents roles. General Electric Capital Corp. also is said to have received approval for the managing agent tier, but the firm has not yet signed on, said one of the bankers involved in the syndication process.
J.P. Morgan, Bank of America, Deutsche Bank, Lehman Brothers and Wachovia Securities are the lead agents for the mammoth debt package backing the $7.05 billion acquisition of QwestDex by The Carlyle Group and Welsh, Carson, Anderson & Stowe. The bank debt is being syndicated in two phases, the first of which backs the sale of QwestDex's operations in Colorado, Iowa, Minnesota, Nebraska, New Mexico and South Dakota for $2.75 billion. Last week's retail launch was only for phase one, although the sub-underwriters have signed on for both stages, the banker said.
The bank debt for the first phase, known as DexEast, comprises a $100 million revolver and a $690 million "A" term loan, both priced at LIBOR plus 3%. A $20 million commitment receives a 11/ 4% fee, while a $15 million commitment gets 1%. The $700 million "B" piece is priced at LIBOR plus 31/ 2% with a 50 basis point fee.