Case Name :      Qwest Communications Bond-Swap Offer (A)

Authors :           Matthias Hild, Jordan Mitchell

Source :             Darden School of Business

Case ID :           UV3887

Discipline :        Finance

Case Length :    11 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

By the end of 2002, Qwest Communications Inc., a major U.S. communications company, was reaching a precarious level of illiquidity in the face of huge debts. To reduce that debt, Qwest offered its institutional investors a chance to exchange some unsecured bonds for new senior-subordinated secured notes. But bondholders had no reliable data on Qwest’s financials, and there is a two-day deadline for accepting Qwest’s offer.