FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Level 3 Completes Refinancing of $2 Billion Tranche B Term Loan

May 07, 2015, 07:22 AM
Filed Under: Telecom

Level 3 Communications, Inc. announced that its wholly owned subsidiary, Level 3 Financing, Inc., has successfully completed the marketing of the refinancing of its $2.0 billion senior secured Tranche B 2022 Term Loan and received commitments to borrow an aggregate $2.0 billion principal amount of a new senior secured Tranche B-II 2022 Term Loan.

Upon closing, the new Tranche B-II 2022 Term Loan will bear interest at LIBOR plus 2.75 percent, with a minimum LIBOR of 0.75 percent, and will mature on May 31, 2022. The Tranche B-II 2022 Term Loan was priced to lenders at par, with the payment to the lenders of an upfront 25 basis point fee at closing.

The Tranche B 2022 Term Loan has an interest rate of LIBOR plus 3.50 percent, with a minimum LIBOR of 1.00 percent and a maturity date of Jan. 31, 2022. The company anticipates saving approximately $20 million of cash interest expense initially, on an annualized basis.

As a result of this transaction, along with capital markets transactions completed earlier this quarter, the company expects to recognize a loss in the second quarter of 2015 of approximately $176 million on extinguishment of debt.

Level 3 Communications, Inc. is a Fortune 500 company that provides local, national and global communications services to enterprise, government and carrier customers. Level 3's comprehensive portfolio of secure, managed solutions includes fiber and infrastructure solutions; IP-based voice and data communications; wide-area Ethernet services; video and content distribution; data center and cloud-based solutions. Level 3 serves customers in more than 500 markets in over 60 countries over a global services platform anchored by owned fiber networks on three continents and connected by extensive undersea facilities.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.