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QWEST NEWS
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QWEST COMMUNICATIONS RELIEVES SHORT-TERM LIQUIDITY PRESSURE IN COMMERCIAL
PAPER MARKET BY DRAWING DOWN ON BANK FACILITY
o Company reaffirms expectation of becoming free cash flow positive in
the second quarter of 2002
o Qwest to host conference call at 5:15 p.m. (EST)
Denver, February 14, 2002----Qwest Communications International Inc. (NYSE: Q)
today announced it has given notice to fully draw down its $4 billion bank
facility to address short-term liquidity needs in the commercial paper market.
The company is using the proceeds to pay down all of its $3.2 billion of
commercial paper and will use the remaining $800 million to give it flexibility
in the capital markets. As previously announced, the company continues to expect
to turn free cash flow positive in the second quarter of 2002. After giving
effect to the borrowings under the bank facility, Qwest's net debt outstanding
remains approximately $24.9 billion. Qwest also said it is exploring additional
longer term refinancing options. The form and timing of the refinancing will
depend on market conditions. Any refinancing option is not expected to increase
total net debt outstanding.
Neither the draw down under the facility nor any refinancing options are
expected to affect Qwest's previously announced objective of strengthening its
balance sheet by reducing debt by $1.5 to $2 billion. On February 5, Qwest filed
with the Securities and Exchange Commission (SEC) a shelf registration statement
covering debt and equity securities. The company does not expect that the
refinancing options would include debt under this shelf, and the timing of any
equity or equity-linked convertible securities under the registration statement
will depend on several factors, including SEC review of the registration
statement and market conditions. In addition, the company is looking at other
ways to reduce debt, including a combination of asset sales or sales of
securities associated with assets.
"These steps address the short-term commercial paper market liquidity needs
while allowing us to focus on executing on our strategy to grow our business,
strengthen our balance sheet and generate free cash flow," said Joseph P.
Nacchio, Qwest chairman and CEO. "As we have said before, we continue to expect
that we will be free cash flow positive in the second quarter of 2002 and
beyond, assured by our strong cash generation capabilities from our 14-state
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local phone business, further efficiencies in operating costs and decreased
capital expenditures."
Qwest's bank facility is a standard investment-grade agreement that is expected
to be renewed in May 2002. Qwest has the unilateral option to convert amounts
drawn under the facility into a one-year term loan that would become due in May
2003.
This announcement does not constitute an offer to sell or the solicitation of an
offer to buy any security.
CONFERENCE CALL TODAY
Qwest will host a conference call for investors, media and other interested
persons today at 5:15 p.m. (EST) with Joseph P. Nacchio, Qwest chairman and
CEO, Robin R. Szeliga, Qwest executive vice president of finance and CFO.
The call may be heard on the Web at www.qwest.com/about/investor/meetings.
ABOUT QWEST
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable,
scalable and secure broadband data, voice and image communications for
businesses and consumers. The Qwest Macro Capacity(R) Fiber Network, designed
with the newest optical networking equipment for speed and efficiency, spans
more than 190,000 miles globally. For more information, please visit the Qwest
Web site at www.qwest.com.
# # #
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
Qwest Communications International Inc. (together with its affiliates, "Qwest",
"we" or "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: potential fluctuations in quarterly results;
volatility of Qwest's stock price; intense competition in the markets in which
we compete; changes in demand for our products and services; the duration and
extent of the current economic downturn, including its effect on our customers
and suppliers; adverse economic conditions in the markets served by us or by
companies in which we have substantial investments; dependence on new product
development and 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; rapid and significant changes in technology and markets; adverse
changes in the regulatory or legislative environment affecting our business,
delays in our ability to provide interLATA services within our 14-state local
service area; failure to maintain rights-of-way; and failure to achieve the
projected synergies and financial results expected to result from the
acquisition of U S WEST, and difficulties in combining the operations of the
combined company. This release may include analysts' estimates and other
information prepared by third parties for which we assume no responsibility. We
undertake no obligation to review or confirm analysts' expectations or estimates
or to release publicly any revisions to any forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
The Qwest logo is a registered trademark of, and CyberCenter is a service
mark of, Qwest Communications International Inc. in the U.S. and certain
other countries.
Contacts: Media Contact: Investor Contact:
-------------- -----------------
Steve Hammack Lee Wolfe
303-896-3030 800-567-7296
steve.hammack@qwest.com IR@qwest.com
Chris Hardman
303-992-2085
chris.hardman@qwest.com
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