Colorado-based telco Level 3 Communications has agreed its second refinancing of the week securing a US$595.5m term loan.
The 2020 facility bears interest at Libor plus 3%, with a Libor floor of 1% and priced at par.
The terms compare favourably to…
Colorado-based telco Level 3 Communications has agreed its second refinancing of the week securing a US$595.5m term loan.
The 2020 facility bears interest at Libor plus 3%, with a Libor floor of 1% and priced at par.
The terms compare favourably to the 2016 term loan it replaces, which has an interest rate of Libor plus 3.25% and minimum Libor of 1.5%.
Level 3 said the refi will save it US$4.5m a year and expects the transaction to be completed by the end of the day.
On Tuesday the ISP and telco agreed a US$815m 2019 term loan, which saves it US$10m per year in interest payments.
The deals are the company’s first debt transactions this year after a busy 2012, which saw it refinance US$3.4bn in loans and sell US$1.2bn in notes.
In its most recent results Level 3 reported US$8bn net debt and a net debt to adjusted EBITDA ratio of 5.1x.
Level 3’s former COO Jeff Storey was appointed CEO in April, replacing James Crowe.
The company offers network services across 55 countries. It owns fibre networks and undersea cables serving enterprise and government clients. It also offers wholesale services to consumer-focused operators.
