US IP-based communications solutions provider Level 3 has completed its previously-announced US$1.5bn private placement.
The US$700m of 5.125% senior notes due 2023 and US$800m of 5.375% senior notes due 2025 were sold to qualified institutional…
US IP-based communications solutions provider Level 3 has completed its previously-announced US$1.5bn private placement.
The US$700m of 5.125% senior notes due 2023 and US$800m of 5.375% senior notes due 2025 were sold to qualified institutional buyers, the company said in a statement.
Both series of notes priced at par and will mature on 1 May 2023.
Level 3 Financing’s obligations under each series of notes will be fully guaranteed on an unsecured basis by parent company Level 3 Communications.
The net proceeds will be used together with cash in hand to redeem all of Level 3’s outstanding 8.125% senior notes and 8.875% senior notes, both due 2019, including interest and expenses.
Last October, the company completed its merger with TW Telecom to create a B2B operator with a total enterprise value of US$25bn. Level 3 agreed to buy TW in June for US$5.7bn in cash and stock, and to assume the target’s US$1.6bn debt pile.Colorado-based Level 3 owns networks and data centres in more than 60 countries as well as a global subsea network. It provides local, national and global communications services to enterprise, government and carrier customers.
