IP-based communications solutions provider Level 3 Communications has priced a US$600m bond as it looks to refinance its existing debt.
The senior unsecured eight-year notes carry a 5.75% interest rate and priced at par.
Proceeds from the offering,…
IP-based communications solutions provider Level 3 Communications has priced a US$600m bond as it looks to refinance its existing debt.
The senior unsecured eight-year notes carry a 5.75% interest rate and priced at par.
Proceeds from the offering, together with cash on hand, will be used to redeem US$605.2m worth of 11.875% senior notes due 2019.
Citigroup, BofA Merrill Lynch, Morgan Stanley, JP Morgan, Goldman Sachs, and Jefferies advised on the transaction.
The issuance will be Level 3’s first offering since it closed its merger with fellow ISP TW Telecom at the end of October.
As part of that deal it moved to refinance TW’s bonds. The perennial capital market enthusiast announced plans to redeem TW’s 5.375% senior notes due 2022 and 6.375% senior notes due 2023 in two phases before the end of the year. In total it will buy back US$832m of the notes.
The combined Level 3/TW Telecom business has more than 200,000 route miles of fibre around the world, 33,000 miles of which is under the sea, and owns satellite teleports. It services more than 50,000 customers across 60 countries around the world and connects 30,000 buildings across the US.
