US ISP and telco Level 3 Communications has increased the size of its existing senior secured credit facility through the creation of a new US$2bn term loan.
Level 3 will amend and restate its existing senior secured credit facility to include the…
US ISP and telco Level 3 Communications has increased the size of its existing senior secured credit facility through the creation of a new US$2bn term loan.
Level 3 will amend and restate its existing senior secured credit facility to include the tranche B 2022 term loan, due 2022, which carries an interest of 350 bps over Libor and was priced at 99.25.
Proceeds from the loan will be used to finance the cash portion of its US$5.7bn merger with TW Telecom, which it agreed to acquire in June, and to refinance some of TW’s US$1.6bn debt.
Merrill Lynch, Pierce, Fenner & Smith, Citigroup, Morgan Stanley, Barclays, Goldman Sachs, Jefferies Finance and JP Morgan acted as joint lead arrangers and joint bookrunning managers for the loan.
Level 3 expects to close the financing when it finalises TW’s acquisition, which is still subject to the execution of definitive documents and customary closing conditions.
Level 3 owns networks and data centres in more than 60 countries and has significant global subsea networks. It provides local, national and global communications services to enterprise, government and carrier customers.
