US-based telecoms services provider Level 3 Communications has marketed a US$1.415bn dual-tranche credit facility as it continues to refinance its debt pile.
Proceeds of the transaction will fully refinance Level 3’s existing US$1.4bn senior secured…
US-based telecoms services provider Level 3 Communications has marketed a US$1.415bn dual-tranche credit facility as it continues to refinance its debt pile.
Proceeds of the transaction will fully refinance Level 3’s existing US$1.4bn senior secured tranche A term loan.
The US$1.415bn facility is split into two tranches: a US$600m loan at Libor plus 3.25%, priced at 99.5 and maturing in 2016; and an US$815m loan bearing interest at Libor plus 3.75%, priced at 99 and due in 2019.
Level 3 expects the refinancing to close on 6 August.
Bank of America Merrill Lynch lead the financing, along with Citigroup, Morgan Stanley, Credit Suisse, Deutsche Bank and JP Morgan.
Moody’s rated the facility Ba3
It is the latest refinancing move from Level 3, which, in the last couple of weeks, issued US$300m 7-year senior unsecured notes and US$775m 8-year senior unsecured notes to redeem a portion of its outstanding 8.75% senior notes due 2017.
Level 3 has a debt tower of approximately US$2.5bn of debt due in 2014 and has around US$8.55bn in total debt.
