The Department of Justice and the FCC have given their approval to Level 3 Communication’s US$3bn acquisition of IP solutions provider Global Crossing.
Level 3 said that it expects to close the deal next week.
The deal agreement was originally…
The Department of Justice and the FCC have given their approval to Level 3 Communication’s US$3bn acquisition of IP solutions provider Global Crossing.
Level 3 said that it expects to close the deal next week.
The deal agreement was originally announced back in April. The total value of the transaction is US$3bn, which includes Level 3 assuming US$1.1bn of Global Crossing’s debt.
Level 3’s advisers for the deal were BoA Merrill Lynch, Citigroup and Morgan Stanley. Rothschild provided a fairness opinion.
Wilkie Farr & Gallagher LLP acted as legal adviser to Level 3..
Global Crossing had Goldman Sachs as its financial adviser and Lathan & Watkins on the legal side.
ST Telemedia, whose subsidiary STT Crossing owns a 60.2% stake in Global Crossing, was advised by Credit Suisse.
In order to secure the acquisition, Level 3 received US$1.75bn of committed financing from BoA Merrill Lynch and Citigroup, which includes a US$1.1bn bridge loan.
Level 3 subsequently made a US$1.2bn bond offering in order to refinance this bridge loan.
The proceeds from this debt offering have been placed in an escrow account until the Global Crossing acquisition has been completed.
The bookrunners for the bond offering were BoA Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank and Morgan Stanley.
