Level 3 Communications, the voice and internet services provider, has said that its subsidiary, Level 3 Financing, has agreed to sell US$900m of 8.625% senior notes due 2020 in a private placement.
In a statement, Level 3 said that investors had priced…
Level 3 Communications, the voice and internet services provider, has said that its subsidiary, Level 3 Financing, has agreed to sell US$900m of 8.625% senior notes due 2020 in a private placement.
In a statement, Level 3 said that investors had priced the notes at 100.
Level 3 had initially planned to sell US$350m of its senior notes, but the size of the offering was subsequently increased.
The company said that a portion of the net proceeds of the offering would be used to redeem all of Level 3 Financing’s outstanding 9.25% senior notes due in 2014.
Level 3 said that remaining proceeds would constitute purchase money indebtedness under its existing indentures. The company said that these remaining proceeds “will be used solely to fund the cost of construction, installation, acquisition, lease, development or involvement of any Telecommunications/IS assets…, including the cash purchase price of any past, pending or future acquisitions”.
Level 3 said that the offering is expected to be completed on 13 January.
