Perennial capital market enthusiast Level 3 Communications is back with another refinancing transaction, its fifth in four months.
The IP-based communications solutions provider has sold US$300m of senior notes set to mature in January 2018 via a…
Perennial capital market enthusiast Level 3 Communications is back with another refinancing transaction, its fifth in four months.
The IP-based communications solutions provider has sold US$300m of senior notes set to mature in January 2018 via a private offering. The floating rate notes priced at par and carry a coupon of 350 basis points over Libor.
Proceeds will be used to redeem the company’s US$300m outstanding notes due 2015.
Level 3 was last in the market at the end of October when it issued US$640m of 6.125% senior notes due 2021, also in a private offering.
In September, Colorado-based Level 3 refinanced a US$1.2bn senior secured loan, pushing the maturity out to 2020. And back in August, it completed the refinancing of two senior secured term loans totalling US$1.4bn, taking out senior secured loans due in 2019 and 2020 using its existing credit agreement.
Level 3 offers network services across 55 countries. It owns fibre networks and undersea cables serving enterprise and government clients. It also offers wholesale services to consumer-focused operators.
The company has been a frequent visitor to the debt markets ever since its US$3bn acquisition of IP solutions provider Global Crossing in 2011. The acquisition was funded through a US$1.75bn financing although actually helped to delever Level 3 slightly due to the target’s lower leverage and substantial free cash flow. However, the new debt did add further levels of complexity to the company’s capital structure.
