US-based Level 3 Communications is planning to issue US$1.2bn of 8.125% senior notes, which it will exchange for “any or all” of its outstanding unregistered notes with the same coupon and maturing in 2019.
In an SEC filing, Level 3 said that the…
US-based Level 3 Communications is planning to issue US$1.2bn of 8.125% senior notes, which it will exchange for “any or all” of its outstanding unregistered notes with the same coupon and maturing in 2019.
In an SEC filing, Level 3 said that the original 8.125% notes were first issued in two private placements by its escrow subsidiary, as a part of the financing for Level 3’s acquisition of IP solutions provider Global Crossing last year. The proceeds were initially placed in an escrow account.
These placements were exempt from registration under the Securities Act of 1933.
Once the Global Crossing deal was completed in October, another Level 3 subsidiary, Level 3 Financing, assumed the obligations for this debt. The proceeds from the notes were then used to refinance some of Global Crossing’s existing debt.
Level 3 said it had agreed with the purchasers of the original notes to offer new 8.125% senior notes due 2019, which will be registered under the Securities Act, in exchange for the old debt.
Level 3 will not receive any proceeds from the bond issue and exchange offer.
Level 3 provides communications services, including internet and voice, to business, government and wholesale customers through its fibre networks.
