0000912057-95-007825.txt : 19950918 0000912057-95-007825.hdr.sgml : 19950918 ACCESSION NUMBER: 0000912057-95-007825 CONFORMED SUBMISSION TYPE: 424B5 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19950915 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: U S WEST COMMUNICATIONS INC CENTRAL INDEX KEY: 0000068622 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 840273800 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B5 SEC ACT: 1933 Act SEC FILE NUMBER: 033-51125 FILM NUMBER: 95573994 BUSINESS ADDRESS: STREET 1: 7800 EAST ORCHARD ROAD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 BUSINESS PHONE: 3037936631 MAIL ADDRESS: STREET 1: 7800 EAST ORCHARD ROAD STREET 2: SUITE 480 CITY: ENGLEWOOD STATE: CO ZIP: 80111 FORMER COMPANY: FORMER CONFORMED NAME: MOUNTAIN STATES TELEPHONE & TELEGRAPH CO DATE OF NAME CHANGE: 19910109 424B5 1 424B5 PROSPECTUS SUPPLEMENT RULE 424(B)(5) (To Prospectus Dated September 12, 1995) Registration No. 033-51125 $500,000,000 U S WEST COMMUNICATIONS, INC. $250,000,000 6 5/8% NOTES DUE 2005 $250,000,000 7 1/4% DEBENTURES DUE 2025 Interest on the 6 5/8% Notes Due 2005 (the "6 5/8% Notes") and on the 7 1/4% Debentures Due 2025 (the "7 1/4% Debentures" and, together with the 6 5/8% Notes, the "Offered Securities") is payable semiannually on March 15 and September 15 of each year, commencing March 15, 1996. The 6 5/8% Notes will mature on September 15, 2005 and the 7 1/4% Debentures will mature on September 15, 2025. Neither the 6 5/8% Notes nor the 7 1/4% Debentures will be redeemable by U S WEST Communications, Inc. (the "Company") prior to maturity. The Offered Securities will be represented by global securities registered in the name of a nominee of The Depository Trust Company, as Depositary (the "Depositary"). Beneficial interests in the Offered Securities will be shown on, and transfers thereof will be effected only through, records maintained by participants of the Depositary. Except as described in the accompanying Prospectus, Offered Securities in certificated form will not be issued in exchange for the global securities. The Offered Securities will trade in the Depositary's Same-Day Funds Settlement System until maturity, and secondary market trading activity will therefore settle in immediately available funds. All payments of principal and interest will be made by the Company in immediately available funds. See "Description of Offered Securities -- Same-Day Settlement and Payment." THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS SUPPLEMENT OR THE PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. -------------------------------------------------------------------------------- PRICE TO UNDERWRITING PROCEEDS TO PUBLIC (1) DISCOUNT COMPANY (1) (2) Per 6 5/8% Note........................... 99.769% .650% 99.119% Total..................................... $249,422,500 $1,625,000 $247,797,500 Per 7 1/4% Debenture...................... 99.830% .875% 98.955% Total..................................... $249,575,000 $2,187,500 $247,387,500 ------------------------------------------------------------------------------------------- (1) Plus accrued interest, if any, from September 15, 1995 to date of delivery. (2) Before deduction of expenses payable by the Company estimated at $250,000.
The Offered Securities are offered subject to receipt and acceptance by the Underwriters, to prior sale and to the Underwriters' right to reject any order in whole or in part and to withdraw, cancel or modify the offer without notice. It is expected that delivery of the global securities will be made through the facilities of The Depository Trust Company on or about September 15, 1995. SALOMON BROTHERS INC GOLDMAN, SACHS & CO. LEHMAN BROTHERS MERRILL LYNCH & CO. MORGAN STANLEY & CO. INCORPORATED The date of this Prospectus Supplement is September 12, 1995. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE OFFERED SECURITIES OFFERED HEREBY AT LEVELS ABOVE THOSE WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. S-2 COMPANY FINANCIAL INFORMATION The following tables set forth the historical statements of operations of the Company for the periods indicated and the condensed balance sheets of the Company as of December 31, 1994 and June 30, 1995. The statements of operations presented below for each of the three years in the period ended December 31, 1994 and the balance sheet as of December 31, 1994, have been derived from and should be read in conjunction with the audited consolidated financial statements and notes thereto of the Company included in its Annual Report on Form 10-K for the year ended December 31, 1994, incorporated by reference in this Prospectus Supplement and the Prospectus. The financial data presented below for the six months ended June 30, 1995 and 1994 have been derived from and should be read in conjunction with the unaudited interim financial statements and notes thereto of the Company included in its Quarterly Report on Form 10-Q for the six months ended June 30, 1995, incorporated by reference in this Prospectus Supplement and the Prospectus. In the opinion of the Company, such unaudited interim financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the data shown for the interim periods. Results for the six months ended June 30, 1995 are not necessarily indicative of results for the full year. S-3 STATEMENTS OF OPERATIONS (DOLLARS IN MILLIONS)
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, JUNE 30, ------------------------------- -------------------- 1992 1993 1994 1994 1995 --------- --------- --------- --------- --------- OPERATING REVENUES Local service........................................... $ 3,674 $ 3,829 $ 4,067 $ 2,001 $ 2,126 Interstate access service............................... 2,047 2,147 2,269 1,118 1,180 Intrastate access service............................... 673 682 729 353 372 Long-distance network service........................... 1,420 1,442 1,329 696 593 Other services.......................................... 510 556 604 293 304 --------- --------- --------- --------- --------- Total operating revenues.............................. 8,324 8,656 8,998 4,461 4,575 --------- --------- --------- --------- --------- OPERATING EXPENSES Employee-related expenses............................... 2,829 2,870 2,930 1,455 1,497 Other operating expenses................................ 1,590 1,646 1,653 799 756 Taxes other than income taxes........................... 348 380 378 195 207 Depreciation and amortization........................... 1,735 1,806 1,887 935 992 Restructuring charge.................................... -- 880 -- -- -- --------- --------- --------- --------- --------- Total operating expenses.............................. 6,502 7,582 6,848 3,384 3,452 --------- --------- --------- --------- --------- Income from operations............................ 1,822 1,074 2,150 1,077 1,123 Interest expense........................................ 402 374 331 161 186 Gain on sales of rural telephone exchanges.............. -- -- 82 48 78 Other expense, net...................................... 35 13 20 17 33 --------- --------- --------- --------- --------- Income before income taxes, extraordinary items and cumulative effect of change in accounting principles..... 1,385 687 1,881 947 982 Provision for income taxes.............................. 435 252 706 355 370 --------- --------- --------- --------- --------- Income before extraordinary items and cumulative effect of change in accounting principles.......................... 950 435 1,175 592 612 Extraordinary items: Discontinuance of SFAS No. 71, net of tax............... -- (3,041) -- -- -- Early extinguishment of debt, net of tax................ -- (77) -- -- -- Cumulative effect of change in accounting principles (accounting for postemployment and postretirement benefits), net of tax.................................. (1,724) -- -- -- -- --------- --------- --------- --------- --------- NET INCOME (LOSS)......................................... $ (774) $ (2,683) $ 1,175 $ 592 $ 612 --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
S-4 CONDENSED BALANCE SHEETS (DOLLARS IN MILLIONS)
AS OF AS OF DECEMBER 31, JUNE 30, 1994 1995 -------------- --------- ASSETS Total current assets.................................................................. $ 2,012 $ 2,078 Gross property, plant and equipment................................................... 29,406 29,972 Less accumulated depreciation....................................................... 16,444 16,983 -------------- --------- Property, plant and equipment-net..................................................... 12,962 12,989 Other assets.......................................................................... 726 761 -------------- --------- Total assets.......................................................................... $ 15,700 $ 15,828 -------------- --------- -------------- --------- LIABILITIES AND SHAREOWNER'S EQUITY Total current liabilities............................................................. $ 3,851 $ 4,608 Long-term debt........................................................................ 4,242 3,977 Postretirement and other postemployment benefit obligations........................... 2,393 2,196 Deferred taxes, credits and other..................................................... 1,530 1,363 Shareowner's equity: Common shares....................................................................... 7,286 7,286 Cumulative deficit.................................................................. (3,602) (3,602) -------------- --------- Total shareowner's equity........................................................... 3,684 3,684 -------------- --------- Total liabilities and shareowner's equity............................................. $ 15,700 $ 15,828 -------------- --------- -------------- ---------
S-5 RECENT DEVELOPMENTS THE COMPANY IS AN INDIRECT, WHOLLY OWNED SUBSIDIARY OF U S WEST, INC., A COLORADO CORPORATION ("U S WEST"). THE FOLLOWING INFORMATION CONCERNING THE COMPANY AND U S WEST SUPPLEMENTS, AND SHOULD BE READ IN CONJUNCTION WITH, THE INFORMATION CONTAINED IN THE ACCOMPANYING PROSPECTUS. CAPITALIZED TERMS USED IN THE PROSPECTUS SUPPLEMENT HAVE THE SAME MEANINGS AS IN THE ACCOMPANYING PROSPECTUS. THE RECAPITALIZATION PLAN. U S WEST has announced a plan (the "Recapitalization Plan") that will change its state of incorporation from Colorado to Delaware and create two classes of common stock that are intended to reflect separately the performance of two segments of U S WEST: the U S WEST Communications Group (the "Communications Group") and the U S WEST Media Group (the "Media Group"). The Communications Group consists primarily of the Company, and the Media Group is comprised of (i) cable and telecommunications network businesses outside the Company's 14-state region (the "Communications Group Region") and internationally, (ii) domestic and international wireless communications network businesses and (iii) domestic and international multimedia content and services businesses. Under the Recapitalization Plan, each outstanding share of common stock of U S WEST will be converted into one share of U S WEST Communications Group Common Stock, which is intended to reflect separately the performance of the Communications Group, and one share of U S WEST Media Group Common Stock, which is intended to reflect separately the performance of the Media Group. The Recapitalization Plan would enable U S WEST to report the results of the Media Group separately from the results of the Communications Group and thereby give stockholders a better understanding of these businesses without diminishing the benefits of remaining a single corporation. Investors would be afforded the ability to invest in either or both stocks depending upon their investment objectives. The Recapitalization Plan will require the approval of U S WEST's shareholders. U S WEST will seek such approval at a special meeting of shareholders to be held on October 31, 1995. The Recapitalization Plan will not result in the transfer of any assets from U S WEST or any of its subsidiaries, including the Company, or alter the legal nature of the Company's obligations to creditors, including its obligations under the Offered Securities. The Recapitalization Plan is not expected to have any adverse impact on the Company's credit rating. However, in connection with the Media Group's growth strategy, U S WEST from time to time engages in discussions regarding acquisitions. U S WEST may fund any such acquisitions, if consummated, with internally generated funds, debt or equity. The incurrence of indebtedness to fund such acquisition and/or the assumption of indebtedness in connection with such acquisitions could result in a downgrading of the Company's credit rating. DEVELOPMENT OF BROADBAND NETWORK. In 1993, U S WEST announced its intention to build an interactive multimedia telecommunications network (the "Broadband Network") capable of providing voice, data and video services to customers within the Communications Group Region. The Communications Group expects to ultimately deliver a variety of integrated communications, entertainment, information and transaction products and services and other high-speed digital services, including data applications, through the Broadband Network in selected areas of the Communications Group Region. These integrated services, including video-on-demand, targeted advertising, home shopping, interactive games, high-definition broadcast television and two-way, video telephony are expected to become available over time as the Broadband Network develops. The Company began limited testing of the Broadband Network in Omaha, Nebraska in December 1994. A market trial in the Omaha area that will cover up to 50,000 homes commenced in August 1995. The offering of interactive video services over the Broadband Network is subject to regulation by the Federal Communications Commission (the "FCC"). In early 1994, the Company filed applications with the FCC to install Broadband Network architecture in Denver; Minneapolis-St. Paul; Salt Lake City; Boise; and Portland, Oregon (collectively, the "Broadband Applications"). In May 1995, however, in order to fully assess the results of the Omaha trials S-6 and examine alternative technologies, including wireless cable and direct broadcast satellite services, the Company withdrew the Broadband Applications. The Communications Group plans to incorporate the results of the Omaha trials, as well as applicable new technologies, into its Broadband Network architecture in order to develop an advanced Broadband Network that is responsive to the needs of customers. This strategy may also include selective investments in wireless cable companies by the Company. FUTURE REGULATION AND LEGISLATION. As competitive pressures grow, there will be increasing regulatory and legislative activity before both the state public utility commissions and the FCC concerning the terms and conditions pursuant to which competing providers, such as competitive access providers, local exchange providers, and information service providers, are permitted to interconnect with, and bypass portions of, the Company's wireline network, as well as other competition-related issues such as unbundling, local market entry, intraLATA toll competition, number portability, and universal service support. The ultimate resolution of such issues by regulators may have a significant impact upon the future competitive position of the communications service of the Company. Though Congress failed to pass telecommunications reform legislation in 1994, new telecommunications legislation has been introduced in both houses in 1995. The Senate passed a bill on June 16, 1995 and the House of Representatives passed a bill on August 4, 1995. The thrust of these bills is to open up the network of local exchange carriers entering into other lines of business. The proposed legislation would (i) open local exchange service to competition and preempt states from imposing barriers preventing such competition, (ii) impose new unbundling and interconnection requirements on local exchange carrier networks, (iii) remove prohibitions on interLATA services and manufacturing imposed by the court approved consent decree entitled the Modification of Final Judgment ("MFJ"), which arose out of an antitrust action brought by the U.S. Department of Justice against AT&T, if certain competitive conditions are met, (iv) transfer any remaining MFJ requirements (including the MFJ's nondiscrimination provisions) to the FCC's jurisdiction, (v) impose requirements to conduct certain competitive activities only through structurally separate affiliates and (vi) eliminate many of the remaining cable and telephone company cross-ownership restrictions. There is, however, uncertainty concerning whether key differences between the House and Senate bills could be resolved in Conference Committee and, if so, whether the resulting bill will survive a threatened veto by President Clinton. The passing of such legislation would significantly change the competitive landscape of the telecommunications industry as a whole. USE OF PROCEEDS The Company intends to apply the net proceeds from the sale of the Offered Securities primarily to the repayment of a portion of commercial paper indebtedness incurred in connection with the redemption of long-term debt, though some of such proceeds may also be applied to general corporate purposes, including extensions, additions and improvements of the Company's plant. For the fiscal year ended December 31, 1994, the Company's commercial paper carried a weighted average interest cost of 4.38%. For the six months ended June 30, 1995, the Company's commerical paper carried a weighted average interest cost of 6.08%. DESCRIPTION OF OFFERED SECURITIES GENERAL The 6 5/8% Notes and the 7 1/4% Debentures will be issued as separate series of Debt Securities (which are more fully described in the accompanying Prospectus) under an Indenture, dated as of April 15, 1990, supplemented as of April 16, 1991, and amended by the Trust Indenture Reform Act of 1990 (as supplemented and amended, the "Indenture"), between the Company and The First National Bank of Chicago, as Trustee (the "Trustee"). Provisions of the Indenture are more fully described under S-7 "Description of Debt Securities" in the accompanying Prospectus to which reference is hereby made. At the date of this Prospectus Supplement, $2,985,150,000 principal amount of Debt Securities has been issued under the Indenture and $2,207,150,000 principal amount of such Debt Securities is outstanding. The 6 5/8% Notes will mature on September 15, 2005 and will be limited to $250,000,000 aggregate principal amount. The 7 1/4% Debentures will mature on September 15, 2025 and will be limited to $250,000,000 aggregate principal amount. Interest on the 6 5/8% Notes and the 7 1/4% Debentures will accrue from September 15, 1995 and will be payable semiannually, on each March 15 and September 15, beginning March 15, 1996, to the persons in whose names the applicable Offered Securities are registered at the close of business on the March 1 or September 1 prior to the payment date at the annual rates set forth on the cover page of this Prospectus Supplement. The Offered Securities will be issued only in book-entry form through the facilities of the Depositary, and will be in denominations of $1,000 and integral multiples thereof. Transfers or exchanges of Offered Securities in book-entry form may be effected only through a participating member of the Depositary. See "Global Securities" below. As described in the accompanying Prospectus, under certain limited circumstances Offered Securities may be issued in certificated form in exchange for the global securities (the "Global Securities"). In the event that Offered Securities are issued in certificated form, such Offered Securities may be transferred or exchanged at the offices described in the immediately following paragraph. Payments on Offered Securities issued in book-entry form will be made to the Depositary. In the event Offered Securities are issued in certificated form, principal and interest, if any, will be payable, the transfer of the Offered Securities will be registrable, and Offered Securities will be exchangeable for Offered Securities bearing identical terms and provisions at the office of the Trustee in The City of New York designated for such purpose, provided that payment of interest, other than interest payable at maturity, may be made at the option of the Company by check mailed to the address of the person entitled thereto as shown on the Debt Securities Register. REDEMPTION Neither the 6 5/8% Notes nor the 7 1/4% Debentures will be redeemable prior to maturity. GLOBAL SECURITIES The Offered Securities will be issued in the form of Global Securities deposited with, or on behalf of, the Depositary and registered in the name of a nominee of the Depositary. Except under the limited circumstances described in the Prospectus under "Description of Debt Securities--Global Securities", owners of beneficial interests in the Global Securities will not be entitled to physical delivery of Offered Securities in certificated form. The Global Securities may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any nominee to a successor of the Depositary or a nominee of such successor. The Depositary has advised the Company and the Underwriters as follows: The Depositary is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. The Depositary holds securities that its participants ("Participants") deposit with the Depositary. The Depositary also facilities the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. The Depositary is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the Depositary's system is also available to others such as securities brokers and S-8 dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly. The Rules applicable to the Depositary and its Participants are on file with the Securities and Exchange Commission. A further description of the Depositary's procedures with respect to the Global Securities is set forth in the Prospectus under "Description of Debt--Securities Global Securities". SAME-DAY SETTLEMENT AND PAYMENT Settlement for the Offered Securities will be made by the Underwriters in immediately available funds. So long as the Depositary continues to make its Same-Day Funds Settlement System available to the Company, all payments of principal of and interest on the Offered Securities will be made by the Company in immediately available funds. Secondary trading in long-term notes, debentures and bonds of corporate issuers is generally settled in clearinghouse or next-day funds. In contrast, the Offered Securities will trade in the Depositary's Same-Day Funds Settlement System, and secondary market trading activity in the Offered Securities will therefore be required by the Depositary to settle in immediately available funds. No assurance can be given as to the effect, if any, of settlement in immediately available funds on trading activity in the Offered Securities. UNDERWRITING Subject to the terms and conditions set forth in the Terms Agreement, dated September 12, 1995, and the Underwriting Agreement--Basic Provisions incorporated therein (together, the "Underwriting Agreement"), the Company has agreed to sell to each of the Underwriters named below, and each of the Underwriters has severally agreed to purchase, the principal amount of 6 5/8% Notes and 7 1/4% Debentures set forth opposite its name below:
PRINCIPAL PRINCIPAL AMOUNT OF AMOUNT OF UNDERWRITER 6 5/8% NOTES 7 1/4% DEBENTURES ----------------------------------------------------------------------------- ---------------- ----------------- Salomon Brothers Inc......................................................... $ 50,000,000 $ 50,000,000 Goldman, Sachs & Co.......................................................... 50,000,000 50,000,000 Lehman Brothers Inc.......................................................... 50,000,000 50,000,000 Merrill Lynch, Pierce, Fenner & Smith Incorporated........................... 50,000,000 50,000,000 Morgan Stanley & Co. Incorporated............................................ 50,000,000 50,000,000 ---------------- ----------------- Total.................................................................... $ 250,000,000 $ 250,000,000 ---------------- ----------------- ---------------- -----------------
The Underwriting Agreement provides that the Underwriters are committed to purchase all of the Offered Securities if any are purchased. The Underwriters propose initially to offer the Offered Securities to the public at the respective public offering prices set forth on the cover page of this Prospectus Supplement, and to certain dealers at such prices less a concession not in excess of, in the case of the 6 5/8% Notes, .400% of the principal amount thereof, and in the case of the 7 1/4% Debentures, .500% of the principal amount thereof. The Underwriters may allow, and such dealers may reallow, a concession not in excess of .250% of the principal amount of the Offered Securities to certain other dealers. After the initial offering, the public offering prices and such concessions may be changed. The Offered Securities are new issues of securities with no established trading markets. The Company has been advised by the Underwriters that they intend to make markets in the Offered Securities but are not obligated to do so, and may discontinue market making at any time without notice. No assurance can be given as to the liquidity of the trading markets for the Offered Securities. S-9 The Company has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933. The Underwriters perform investment banking and other financial services for the Company and certain of its affiliates in the ordinary course of business. LEGAL OPINIONS Certain legal matters relating to the Offered Securities will be passed upon for the Company by Weil, Gotshal & Manges, 767 Fifth Avenue, New York, New York 10153 and by Stephen E. Brilz, Senior Attorney and Assistant Secretary of U S WEST, Inc. and for the Underwriters by Brown & Wood, One World Trade Center, New York, New York 10048-0557. S-10 PROSPECTUS $500,000,000 U S WEST COMMUNICATIONS, INC. DEBT SECURITIES U S WEST Communications, Inc. (the "Company") from time to time may offer its notes, debentures or other debt securities (the "Debt Securities"), in one or more series, up to an aggregate principal amount of $500,000,000. When a particular series of Debt Securities is offered, a supplement to this Prospectus will be delivered (the "Prospectus Supplement") together with this Prospectus setting forth the terms of such Debt Securities, including, where applicable, the specific designation, aggregate principal amount, denominations, maturity, rate (which may be fixed or variable) and time of payment of interest, any terms for redemption at the option of the Company, any terms for sinking fund payments, the initial public offering price, the names of, and the principal amounts to be purchased by, underwriters and the compensation of such underwriters, any listing of the Debt Securities on a securities exchange and the other terms in connection with the offering and sale of such Debt Securities. The Company may sell the Debt Securities to or through underwriters, and also may sell the Debt Securities directly to other purchasers or through agents or dealers. See "Plan of Distribution". ------------------- THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. ------------------- The date of this Prospectus is September 12, 1995. AVAILABLE INFORMATION The Company is subject to the informational requirements of the Securities Exchange Act of 1934 (the "Exchange Act") and in accordance therewith files reports and other information with the Securities and Exchange Commission (the "Commission"). Reports and other information concerning the Company can be inspected and copied at the public reference facilities maintained by the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549, as well as the following Commission Regional Offices: at Seven World Trade Center, 13th Floor, New York, New York 10048, and Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies can be obtained by mail at prescribed rates. Requests should be directed to the Commission's Public Reference Section, Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549. In addition, such reports and other information concerning the Company can be inspected at the offices of the New York Stock Exchange, Inc., 20 Broad Street, New York, New York 1005. The Company has filed with the Commission a registration statement on Form S-3 (herein, together with all amendments and exhibits, referred to as the "Registration Statement") under the Securities Act of 1933 (the "Securities Act"). This Prospectus does not contain all of the information set forth in the Registration Statement, certain parts of which are omitted in accordance with the rules and regulations of the Commission. For further information, reference is hereby made to the Registration Statement. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE The following documents have been filed by the Company with the Commission (File No. 1-3040) and are incorporated herein by reference: (1) Annual Report on Form 10-K for the year ended December 31, 1994. (2) Quarterly Reports on Form 10-Q for the quarters ended March 31, 1995 and June 30, 1995. (3) Current Reports on Form 8-K dated June 20, 1995. All documents filed by the Company pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of this Prospectus and prior to the termination of the offering of the Debt Securities shall be deemed to be incorporated by reference into this Prospectus and to be a part hereof from the date any such document is filed. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Prospectus to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus. THE COMPANY WILL PROVIDE WITHOUT CHARGE TO EACH PERSON TO WHOM A PROSPECTUS IS DELIVERED, UPON WRITTEN OR ORAL REQUEST OF SUCH PERSON, A COPY OF ANY OR ALL OF THE DOCUMENTS WHICH ARE INCORPORATED BY REFERENCE HEREIN, OTHER THAN EXHIBITS TO SUCH DOCUMENTS WHICH ARE NOT SPECIFICALLY INCORPORATED BY REFERENCE THEREIN. REQUESTS SHOULD BE DIRECTED TO THE TREASURER, ROOM 5200, U S WEST COMMUNICATIONS, INC. 1801 CALIFORNIA STREET, DENVER, COLORADO 80202 (TELEPHONE (303) 896-2355). THE COMPANY The Company is engaged in the business of providing regulated communications services in the states of Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. Prior to its divestiture by American Telephone and Telegraph Company ("AT&T") on January 1, 1984, the Company was an associated company of the Bell System and a wholly owned subsidiary of AT&T. On January 1, 1984, the Company became an indirect, wholly owned subsidiary of U S WEST, Inc. ("U S WEST"), one of the seven regional holding 2 companies formed by AT&T in connection with the court-ordered divestiture by AT&T of certain portions of its 22 wholly owned operating telephone companies. Also on January 1, 1984, ownership of U S WEST passed from AT&T directly to AT&T's shareholders. Effective January 1, 1991, Northwestern Bell Telephone Company ("Northwestern Bell") and Pacific Northwest Bell Telephone Company ("Pacific Northwest Bell"), each an indirect, wholly owned subsidiary of U S WEST, were merged with and into the Company, formerly The Mountain States Telephone and Telegraph Company, pursuant to plans of merger (the "Merger"). All of the issued and outstanding shares of capital stock in Northwestern Bell and Pacific Northwest Bell were surrendered and cancelled pursuant to the terms of the Merger. The issued and outstanding shares of capital stock of the Company were not affected as a result of the Merger and remain outstanding. As a result of the Merger, the separate existences of Northwestern Bell and Pacific Northwest Bell have ceased. The Company, incorporated under the laws of the State of Colorado, has its principal executive offices at 1801 California Street, Denver, Colorado 80202 (telephone number (303) 896-2355). USE OF PROCEEDS The Company intends to apply the net proceeds from the sale of the Debt Securities primarily to the repayment of a portion of its commercial paper indebtedness, though some of such proceeds may also be applied to general corporate purposes, including extensions, additions and improvements of the Company's plant. The Company has been making, and expects to continue to make, capital expenditures to meet the demand for telecommunications services and to further improve such services. Capital expenditures were approximately $2.5 billion in 1994 and are planned to be approximately $2.1 billion in 1995. The Company anticipates that its capital expenditures will be financed primarily by cashflow from operations, though it may be necessary to obtain some of such capital through additional debt and/or equity investments by U S WEST. RATIO OF EARNINGS TO FIXED CHARGES The following table sets forth the ratios of earnings to fixed charges of the Company for the periods indicated.
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, JUNE 30, ----------------------------------------------------- -------------------- 1990 1991 1992 1993 1994 1994 1995 --------- --------- --------- --------- --------- --------- --------- Ratio of Earnings to Fixed Charges..... 4.00 3.33 3.97 2.56 5.22 5.45 5.08
For the purpose of calculating this ratio, earnings consist of income before income taxes and fixed charges. Fixed charges include interest on indebtedness and the portion of rentals representative of the interest factor. The 1993 ratio is based on earnings before extraordinary charges associated with the decision to discontinue accounting for the operations of the Company in accordance with Statement of Financial Accounting Standard No. 71 and the early extinguishment of debt. In addition, the 1993 ratio includes a restructuring charge of $880 million. Excluding the restructuring charge, the ratio of earnings to fixed charges would have been 4.55. The 1992 ratio is based on earnings before the cumulative effect of a change in accounting principles relating to post-retirement and post-employment benefits. The 1991 ratio includes a restructuring charge of $240 million. Excluding the restructuring charge, the ratio of earnings to fixed charges would have been 3.81. 3 DESCRIPTION OF DEBT SECURITIES The following description of the Debt Securities sets forth certain general terms and provisions to which any Prospectus Supplement may relate. The particular terms and provisions of the series of Debt Securities offered by a Prospectus Supplement and the extent to which such general terms and provisions described below may apply thereto, will be described in the Prospectus Supplement relating to such series of Debt Securities. The Debt Securities are to be issued under an Indenture, dated as of April 15, 1990 and supplemented as of April 16, 1991, and as amended by the Trust Indenture Reform Act of 1990 (as supplemented and amended, the "Indenture"), between the Company and The First National Bank of Chicago, as Trustee ("Trustee"). The following summaries of certain provisions of the Debt Securities and the Indenture do not purport to be complete and are subject to, and are qualified in their entirety by reference to, all provisions of the Indenture, including the definitions therein of certain terms. Wherever particular sections or defined terms of the Indenture are referred to, it is intended that such sections or defined terms shall be incorporated herein by reference. GENERAL The Indenture does not limit the amount of Debt Securities which can be issued thereunder and additional debt securities may be issued thereunder up to the aggregate principal amount which may be authorized from time to time by, or pursuant to a resolution of, the Company's Board of Directors or by a supplemental indenture. Reference is made to the Prospectus Supplement for the following terms of the particular series of Debt Securities being offered hereby: (i) the title of the Debt Securities of the series; (ii) any limit upon the aggregate principal amount of the Debt Securities of the series; (iii) the date or dates on which the principal of the Debt Securities of the series will mature; (iv) the rate or rates (or manner of calculation thereof), if any, at which the Debt Securities of the series will bear interest, the date or dates from which any such interest will accrue and on which such interest will be payable, and, with respect to Debt Securities of the series in registered form, the record date for the interest payable on any interest payment date; (v) the place or places where the principal of and interest, if any, on the Debt Securities of the series will be payable; (vi) any redemption or sinking fund provisions; (vii) if other than the principal amount thereof, the portion of the principal amount of Debt Securities of the series which will be payable upon declaration of acceleration of the maturity thereof; (viii) whether the Debt Securities of the series will be issuable in registered or bearer form or both, any restrictions applicable to the offer, sale or delivery of Debt Securities in bearer form ("bearer Debt Securities") and whether and the terms upon which bearer Debt Securities will be exchangeable for Debt Securities in registered form ("registered Debt Securities") and vice versa; (ix) whether and under what circumstances the Company will pay additional amounts on the Debt Securities of the series held by a person who is not a U.S. person (as defined below) in respect of taxes or similar charges withheld or deducted and, if so, whether the Company will have the option to redeem such Debt Securities rather than pay such additional amounts; and (x) any additional provisions or other special terms not inconsistent with the provisions of the Indenture, including any terms which may be required by or advisable under United States laws or regulations or advisable in connection with the marketing of Debt Securities of such series. (Sections 2.01 and 2.02.) To the extent not described herein, principal, premium, if any, and interest, if any, will be payable, and the Debt Securities of a particular series will be transferable, in the manner described in the Prospectus Supplement relating to such series. Each series of Debt Securities will constitute unsecured and unsubordinated indebtedness of the Company and will rank on a parity with the Company's other unsecured and unsubordinated indebtedness. Debt Securities of any series may be issued as registered Debt Securities or bearer Debt Securities or both as specified in the terms of the series. Unless otherwise indicated in the applicable Prospectus Supplement, Debt Securities will be issued in denominations of $1,000 and integral multiples thereof and bearer Debt Securities will not be offered, sold, resold or delivered to U.S. persons in connection with their original issuance. For purposes of this Prospectus, "U.S. person" means a citizen, national or 4 resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the United States or any political subdivision thereof, or an estate or trust which is subject to United States Federal income taxation regardless of its source of income. To the extent set forth in the Prospectus Supplement, except in special circumstances set forth in the Indenture, interest on bearer Debt Securities will be payable only against presentation and surrender of the coupons for the interest installments evidenced thereby as they mature at a paying agency of the Company located outside of the United States and its possessions. (Section 2.05(c).) The Company will maintain such an agency for a period of two years after the principal of such bearer Debt Securities has become due and payable. During any period thereafter for which it is necessary in order to conform to United States tax law or regulations, the Company will maintain a paying agent outside the United States and its possessions to which the bearer Debt Securities may be presented for payment and will provide the necessary funds therefor to such paying agent upon reasonable notice. (Section 2.04.) Bearer Debt Securities and the coupons related thereto will be transferable by delivery. (Section 2.08(e).) GLOBAL SECURITIES The Debt Securities of a series may be issued in whole or in part in the form of one or more Global Securities that will be deposited with, or on behalf of, a depositary (the "Depositary") identified in the Prospectus Supplement relating to such series. Global Securities may be issued in either registered or bearer form and in either temporary or permanent form. Unless and until it is exchanged in whole or in part for Debt Securities in definitive form, a Global Security may not be transferred except as a whole by the Depositary for such Global Security to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by such Depositary or any such nominee to a successor of such Depositary or a nominee of such successor. The specific terms of the depositary arrangement with respect to any Debt Securities of a series, to the extent they are materially different from those described herein, will be described in the Prospectus Supplement relating to such series. The Company anticipates that the following provisions will apply to all depositary arrangements. Upon the issuance of a Global Security, the Depositary for such Global Security will credit, on its book-entry registration and transfer system, the respective principal amounts of the Debt Securities represented by such Global Security to the accounts of institutions that have accounts with such Depositary ("participants"). The accounts to be credited shall be designated by the underwriters or agents of such Debt Securities or by the Company, if such Debt Securities are offered and sold directly by the Company. Ownership of beneficial interests in a Global Security will be limited to participants or persons that may hold interests through participants. Ownership of beneficial interests in such Global Security will be shown on, and the transfer of that ownership will be effected only through, records maintained by the Depositary for such Global Security or by participants or persons that hold through participants. The laws of some states require that certain purchasers of securities take physical delivery of such securities in definitive form. Such limits and such laws may impair the ability to transfer beneficial interests in a Global Security. So long as the Depositary for a Global Security, or its nominee, is the owner of such Global Security, such Depositary or such nominee, as the case may be, will be considered the sole owner or holder of the Debt Securities represented by such Global Security for all purposes under the Indenture governing such Debt Securities. Except as set forth below, owners of beneficial interests in a Global Security will not be entitled to have Debt Securities of the series represented by such Global Security registered in their names, will not receive or be entitled to receive physical delivery of Debt Securities of such series in definitive form and will not be considered the owners or holders thereof under the Indenture governing such Debt Securities. Principal, premium, if any, and interest payments on Debt Securities registered in the name of or held by a Depositary or its nominee will be made to the Depositary or its nominee, as the case may be, as the registered owner or the holder of the Global Security representing such Debt Securities. Neither of 5 the Company, the Trustee for such Debt Securities, or any paying agent for such Debt Securities will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security for such Debt Securities or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. The Company expects that the Depositary for Debt Securities of a series, upon receipt of any payment of principal, premium or interest in respect of a permanent Global Security, will credit immediately participants' accounts with payments in amounts proportionate to their respective beneficial interests in the principal amount of such Global Security as shown on the records of such Depositary. The Company also expects that payments by participants to owners of beneficial interests in such Global Security held through such participants, will be governed by standing instructions and customary practices, as is now the case with securities held for the accounts of customers in bearer form or registered in "street name", and will be the responsibility of such participants. If a Depositary for Debt Securities of a series is at any time unwilling or unable to continue as depositary and a successor depositary is not appointed by the Company within ninety days, the Company will issue Debt Securities of such series in definitive form in exchange for the Global Security or Securities representing the Debt Securities of such series. In addition, the Company may at any time and in its sole discretion determine not to have any Debt Securities of a series represented by one or more Global Securities and, in such event, will issue Debt Securities of such series in definitive form in exchange for the Global Security or Securities representing such Debt Securities. In any such instance, an owner of a beneficial interest in a Global Security will be entitled to physical delivery in definitive form of Debt Securities of the series represented by such Global Security equal in principal amount to such beneficial interest and to have such Debt Securities registered in its name (if the Debt Securities of such series are issuable as Registered Securities). Debt Securities of such series so issued in definitive form will be issued as Registered Securities in denominations, unless otherwise specified by the Company, of $1,000 and integral multiples of $1,000 in excess thereof if the Debt Securities of such series are issuable as Registered Securities. EXCHANGE OF SECURITIES To the extent permitted by the terms of a series of Debt Securities authorized to be issued in registered form and bearer form, bearer Debt Securities may be exchanged for an equal aggregate principal amount of registered or bearer form Debt Securities of the same series and date of maturity in such authorized denominations as may be requested upon surrender of the bearer Debt Securities with all unpaid coupons relating thereto at an agency of the Company maintained for such purpose and upon fulfillment of all other requirements of such agent. (Section 2.08(b).) As of the date of this Prospectus, temporary United States Treasury regulations do not permit exchanges of registered Debt Securities for bearer Debt Securities and unless such regulations are modified, the terms of a series of Debt Securities will not permit registered Debt Securities to be exchanged for bearer Debt Securities. LIENS ON ASSETS If at any time the Company mortgages, pledges or otherwise subjects to any lien the whole or any part of any property or assets now owned or hereafter acquired by it, except as hereinafter provided, the Company will secure the outstanding Debt Securities, and any other obligations of the Company which may then be outstanding and entitled to the benefit of a covenant similar in effect to this covenant, equally and ratably with the indebtedness or obligations secured by such mortgage, pledge or lien, for as long as any such indebtedness or obligation is so secured. The foregoing covenant does not apply (i) to the creation, extension, renewal or refunding of (a) mortgages or liens created or existing at the time property is acquired, (b) mortgages or liens created within 180 days thereafter, or (c) mortgages or liens for the purpose of securing the cost of construction or improvement of property, or (ii) to the making of any deposit or pledge to secure public or statutory obligations or with any governmental agency at any time required by law in order to qualify the Company to conduct its business or any part thereof or in order to entitle it to maintain self-insurance or to obtain the benefits of any law relating to workmen's compensation, unemployment insurance, old age pensions or other social security, or with any court, 6 board, commission or governmental agency as security incident to the proper conduct of any proceeding before it. Nothing contained in the Indenture prevents any entity other than the Company from mortgaging, pledging or subjecting to any lien any property or assets, whether or not acquired from the Company (Section 4.03.) AMENDMENT AND WAIVER Subject to certain exceptions, the Indenture or the Debt Securities may be amended or supplemented by the Company and the Trustee with the consent of the holders of a majority in principal amount of the outstanding Debt Securities of each series affected by the amendment or supplement (with each series voting as a class), or compliance with any provision may be waived with the consent of the holders of a majority in principal amount of the outstanding Debt Securities of each series affected by such waiver (with each series voting as a class). However, without the consent of each Debt Securityholder affected, an amendment or waiver may not (i) reduce the amount of Debt Securities whose holders must consent to an amendment or waiver; (ii) change the rate of or change the time for payment of interest on any Debt Security; (iii) change the principal of or change the fixed maturity of any Debt Security; (iv) waive a default in the payment of the principal of or interest on any Debt Security; (v) make any Debt Security payable in money other than that stated in the Debt Security; (vi) impair the right to receive payment on or with respect to any Debt Security or institute suit for the enforcement of any payment on or with respect to any Debt Security; or (vii) make any change in the provisions of the Indenture concerning (a) waiver of existing defaults (Section 6.04); (b) rights of holders to receive payment (Section 6.07); or (c) amendments and waivers with consent of holders (Section 9.02(a), third sentence). (Section 9.02.) The Indenture may be amended or supplemented without the consent of any Debt Securityholder (i) to cure any ambiguity, defect or inconsistency in the Indenture or in the Debt Securities of any series; (ii) to provide for the assumption of all the obligations of the Company under the Debt Securities and any coupons related thereto and the Indenture by any corporation in connection with a merger, consolidation, transfer or lease of the Company's property and assets substantially as an entirety, as provided for in the Indenture; (iii) to provide for uncertificated Debt Securities in addition to or in place of certificated Debt Securities; (iv) to make any change that does not adversely affect the rights of any Debt Securityholder; (v) to provide for the issuance of and establish the form and terms and conditions of a series of Debt Securities or to establish the form of any certifications required to be furnished pursuant to the terms of the Indenture or any series of Debt Securities; (vi) to add to rights of Debt Securityholders; or (vii) to secure any Debt Securities as provided under "Liens on Assets" above. (Section 9.01.) SUCCESSOR ENTITY The Company may not consolidate with or merge into or be merged with, or transfer or lease its property and assets substantially as an entirety to another entity unless the successor entity is a corporation and assumes by supplemental indenture all the obligations of the Company under the Debt Securities and any coupons related thereto and the Indenture, provided, however that no Default or Event of Default shall have occurred and be continuing. Thereafter, all such obligations of the Company terminate. (Section 5.01.) The general provisions of the Indenture do not afford holders of the Debt Securities protection in the event of a highly-leveraged transaction, reorganization, merger or similar transaction involving the Company that may adversely affect holders of the Debt Securities. EVENTS OF DEFAULT The following events are defined in the Indenture as "Events of Default" with respect to a series of Debt Securities: (i) default in the payment of interest on any Debt Security of such series for 90 days; (ii) default in the payment of the principal of any Debt Security of such series; (iii) failure by the Company for 90 days after notice to it by the Trustee or the holders of at least 25% in principal amount of all of the outstanding Debt Securities of that series to comply with any of its other agreements in the Debt Securities of such series, in the Indenture or in any supplemental indenture; and (iv) certain events of bankruptcy or insolvency. (Section 6.01.) If an Event of Default occurs with respect to the Debt Securities of any series and is continuing, the Trustee or the holders of at least 25% in principal amount of all of the 7 outstanding Debt Securities of that series, by notice as provided in the Indenture, may declare the principal (or, if the Debt Securities of that series are original issue discount Debt Securities, such portion of the principal amount as may be specified in the terms of that series) of all the Debt Securities of that series to be due and payable. Upon such declaration, such principal (or, in the case of original issue discount Debt Securities, such specified amount) shall be due and payable immediately. (Section 6.02.) Securityholders may not enforce the Indenture or the Debt Securities, except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Debt Securities. (Section 7.01(e).) Subject to certain limitations, holders of a majority in principal amount of the Debt Securities of each series affected (with each series voting as a class) may direct the Trustee in its exercise of any trust power. (Section 6.05.) The Trustee may withhold from Debt Securityholders notice of any continuing default (except a default in payment of principal or interest) if it determines that withholding notice is in their interests. (Section 7.05.) CONCERNING THE TRUSTEE The Company maintains banking relationships in the ordinary course of business with the Trustee. PLAN OF DISTRIBUTION GENERAL The Company may sell the Debt Securities being offered hereby: (i) directly to purchasers, (ii) through agents, (iii) through underwriters, (iv) through dealers, or (v) through a combination of any such methods of sale. The distribution of the Debt Securities may be effected from time to time in one or more transactions either (i) at a fixed price or prices, which may be changed, (ii) at market prices prevailing at the time of sale, (iii) at prices related to such prevailing market prices, or (iv) at negotiated prices. Offers to purchase Debt Securities may be solicited directly by the Company or by agents designated by the Company from time to time. Any such agent, which may be deemed to be an underwriter as that term is defined in the Securities Act, involved in the offer or sale of the Debt Securities in respect of which this Prospectus is delivered will be named, and any commissions payable by the Company to such agent will be set forth, in the applicable Prospectus Supplement or Pricing Supplement. Unless otherwise indicated in the Prospectus Supplement or pricing supplement, any such agent will be acting on a best efforts basis for the period of its appointment (ordinarily five business days or less). Agents may be customers of, engage in transactions with, or perform services for the Company in the ordinary course of business. The applicable Prospectus Supplement or pricing supplement thereto also will set forth certain other terms of the offering of the particular series of Debt Securities to which such Prospectus Supplement relates, including any discounts, concessions or commissions allowed or reallowed or paid by any underwriters to other dealers and the securities exchanges, if any, on which such series of Debt Securities will be listed. If an underwriter or underwriters are utilized in the sale, the Company will enter into an underwriting agreement with such underwriters at the time of sale to them and the names of the underwriters and the terms of the transaction will be set forth in the applicable Prospectus Supplement, which will be used by the underwriters to make resales of the Debt Securities in respect of which this Prospectus is delivered to the public. If a dealer is utilized in the sale of the Debt Securities in respect of which this Prospectus is delivered, the Company will sell such Debt Securities to the dealer, as principal. The dealer may then resell such Debt Securities to the public at varying prices to be determined by such dealer at the time of resale. Underwriters, dealers, agents and other persons may be entitled, under agreements which may be entered into with the Company, to indemnification against certain civil liabilities, including liabilities under the Securities Act. 8 EXPERTS The consolidated financial statements and consolidated financial statement schedules included in the Company's Annual Report on Form 10-K for the year ended December 31, 1994 are incorporated herein by reference in reliance on the report of Coopers & Lybrand L.L.P., independent certified public accountants, given upon the authority of that firm as experts in accounting and auditing. LEGAL OPINIONS Certain legal matters relating to the Debt Securities will be passed upon for the Company by Stephen E. Brilz, Senior Attorney and Assistant Secretary of U S WEST, and for the agents or underwriters, by Brown & Wood, One World Trade Center, New York, New York 10048. 9 NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED OR INCORPORATED BY REFERENCE IN THIS PROSPECTUS SUPPLEMENT OR THE PROSPECTUS IN CONNECTION WITH THE OFFER MADE BY THIS PROSPECTUS SUPPLEMENT AND THE PROSPECTUS AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY OR BY ANY OF THE UNDERWRITERS. NEITHER THE DELIVERY OF THIS PROSPECTUS SUPPLEMENT AND THE PROSPECTUS NOR ANY SALE MADE THEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE AN IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THE DATE OF THIS PROSPECTUS SUPPLEMENT. THIS PROSPECTUS SUPPLEMENT AND THE PROSPECTUS DO NOT CONSTITUTE AN OFFER OR SOLICITATION BY ANYONE IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT AUTHORIZED OR IN WHICH THE PERSON MAKING SUCH OFFER OR SOLICITATION IS NOT QUALIFIED TO DO SO OR TO ANYONE TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION. ------------------- TABLE OF CONTENTS
PAGE ----- PROSPECTUS SUPPLEMENT Company Financial Information.................. S-3 Recent Developments............................ S-6 Use of Proceeds................................ S-7 Description of Offered Securities.............. S-7 Underwriting................................... S-9 Legal Opinions................................. S-10 PROSPECTUS Available Information.......................... 2 Incorporation of Certain Documents By Reference..................................... 2 The Company.................................... 2 Use of Proceeds................................ 3 Ratio of Earnings to Fixed Charges............. 3 Description of Debt Securities................. 4 Plan of Distribution........................... 8 Experts........................................ 9 Legal Opinions................................. 9
$500,000,000 U S WEST COMMUNICATIONS, INC. $250,000,000 6 5/8% NOTES DUE 2005 $250,000,000 7 1/4% DEBENTURES DUE 2025 SALOMON BROTHERS INC GOLDMAN, SACHS & CO. LEHMAN BROTHERS MERRILL LYNCH & CO. MORGAN STANLEY & CO. INCORPORATED PROSPECTUS SUPPLEMENT DATED SEPTEMBER 12, 1995