US-based telecoms provider Level 3 Communications has expanded yesterday’s US$400m bond issue, selling US$775m senior unsecured notes in a private placement as it continues to refinance its debt.
The 8-year 7% notes were priced at par so will yield…
US-based telecoms provider Level 3 Communications has expanded yesterday’s US$400m bond issue, selling US$775m senior unsecured notes in a private placement as it continues to refinance its debt.
The 8-year 7% notes were priced at par so will yield 7%.
Citigroup, Bank of America Merrill Lynch, Morgan Stanley, Credit Suisse, Deutsche Bank and JP Morgan were the joint bookrunning managers for the sale.
Level 3 previously stated it would use the proceeds to redeem a portion of its outstanding 8.75% senior notes due 2017.
S&P rated the offering CCC, saying: “We do not expect the debt offering and redemption of 8.75% notes to change our assessment of the company’s financial risk profile as ‘highly leveraged.’”
Moody’s assigned the latest offering B3. It also rated Level 3’s US$1.415bn 2-tranche credit facility announced on Tuesday.
It rated the term loan Ba3, saying that the company’s credit profile was not affected as the facility replaced similar debt.