The Carlyle Group and Welsh, Carson, Anderson & Stowe Close Qwest Dex West Deal; Deal Completes Largest U.S. Buyout Since 1989

New York, NY - The Carlyle Group (Carlyle) and Welsh, Carson, Anderson & Stowe (WCAS) closed the second and final part - Dex West - of their purchase of Qwest Communications’ yellow page directories business on September 9th. This second part of the transaction is valued at $4.3 billion. The close of Dex West marks the consummation of the $7.05 billion transaction, representing the largest U.S. buyout since 1989 and the third largest in U.S. history. The first part of the transaction - Dex East - closed in November 2002.

“We’re delighted to have full ownership of this great company and we look forward to working with the Dex team to take the business to an even higher level of performance,” said Anthony J. de Nicola, partner of WCAS and co-chairman of Dex Media.

“Our investors will benefit from the value Dex brings to the marketplace and the predictable cash flows the company generates,” said James A. Attwood, Jr., managing director, The Carlyle Group and co-chairman of Dex Media.

Financing for the second part of the transaction, including fees and expenses, consists of the following:

From Dex West:
- Equity of $912 million (evenly split between Carlyle and WCAS)
- Bank Debt of $2,213 million
- $385 million of 8 1/2% Senior Notes due 2010
- $780 million of 9 7/8% Senior Subordinated Notes due 2013

From Dex East:
- Equity of $50 million (evenly split between Carlyle and WCAS)
- Bank Debt of $160 million

JP Morgan acted as M&Amp;A advisor to Carlyle and WCAS on the transaction. The financing for Dex was led by JP Morgan, Bank of America, Deutsche Bank, Lehman Brothers and Wachovia.

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