US operator Level 3 Communications has announced the pricing for its previously reported US$1.2bn refinancing.
The US$1.2bn tranche B-II 2019 term loan will bear interest at Libor plus 3.25%, with a minimum Libor of 1.5%, and is being priced to lenders…
US operator Level 3 Communications has announced the pricing for its previously reported US$1.2bn refinancing.
The US$1.2bn tranche B-II 2019 term loan will bear interest at Libor plus 3.25%, with a minimum Libor of 1.5%, and is being priced to lenders at par.
Level 3 said as its two current loans issued in 2011 – tranche B II and III for a combined US$1.2bn – carry higher interest, at 4.25%, and therefore the refi will save the company US$12m in interest payments a year.
The refi will be transacted by Level 3 Financing, Level 3’s wholly-owned subsidiary.
The closing of the refinancing transaction is scheduled to be completed on 4 October 2012.
BofA Merrill Lynch is leading the refinancing with Citigroup.
The term loan has been rated B+ by Standard & Poor’s and Ba3 by Moody’s.
Other banks listed as joint bookrunners for the original 2011 loans were Morgan Stanley, Deutsche Bank, Credit Suisse and Wells Fargo. Willkie Farr & Gallagher acting as general counsel and Cravath Swaine & Moore legally advised the joint lead arrangers.