US telco Level 3 Communications has completed an additional offering of US$600m of its 8.125% senior notes due in 2019.
This offering was an add-on to an initial offering of US$600m of the 8.125% notes that was completed on 9 June.
Both the add-on and…
US telco Level 3 Communications has completed an additional offering of US$600m of its 8.125% senior notes due in 2019.
This offering was an add-on to an initial offering of US$600m of the 8.125% notes that was completed on 9 June.
Both the add-on and the initial notes will be treated as a single series of notes under the same indenture.
Citigroup, Credit Suisse, Deutsche Bank, BoA Merrill Lynch and Morgan Stanley were the bookrunners for both the initial and add-on offerings.
In its statement on the additional offering, Level 3 said that the gross proceeds of the notes would go into an escrow account, where it will stay until certain conditions are passed.
These conditions include the completion of the Global Crossing acquisition.
Once the conditions have been passed, the funds would be used to refinance Global Crossing’s debt.
Level 3 said that the gross proceeds would reduce to zero the bridge commitment that it had in place for the transaction.
When it announced the US$3bn Global Crossing acquisition in April, Level 3 said that it had received committed financing of US$1.75bn on the transaction.
This included a US$1.1bn 12-months bridge loan and US$650m senior secured term loan, which carries an interest rate of 14%.
This committed financing was secured from BoA Merrill Lynch and Citigroup.
IFR reported that the two banks launched a US$650m loan for Level 3 on Thursday.
Level 3 did not reply to questions before the press deadline.
