Qwest to pare debt, sell assets

Qwest Communications today said it has filed a shelf registration with the Securities and Exchange Commission to offer up to $2.5 billion in debt and equity securities. The company said it expects to issue no more than $1.25 billion in equity or equity-linked convertible securities under the registration statement.

Joseph Nacchio, chairman and CEO, said the company offering would eliminate about half of the $1.5 billion to $2 billion in debt that it wants to take off the books this year. The remainder of that will be handled through asset sales or sales of securities associated with assets. Among the potential assets that could be on the block are wireless properties, the company’s ASP group or rural access lines.

“Everything is not for sale,” said Nacchio. “When we say access lines, we are looking to particular qualifications. It will be a deliberate plan.”

Nacchio said the company is starting the debt-reduction plan with the securities sale because it was the fastest of all the alternatives. It also “takes the pressure off the negotiation of any asset sale.”