US IP-based communications solutions provider Level 3 Communications has priced its private offering of 5.125% senior notes due 2023 and 5.375% senior notes due 2025 at par.
The 2023 and 2025 notes, worth US$700m and US$800m respectively, will be sold…
US IP-based communications solutions provider Level 3 Communications has priced its private offering of 5.125% senior notes due 2023 and 5.375% senior notes due 2025 at par.
The 2023 and 2025 notes, worth US$700m and US$800m respectively, will be sold to qualified institutional investors and will be fully and unconditionally guaranteed on an unsecured basis by Level 3 Communications.
Proceeds from the offering together with cash in hand will be used to redeem, satisfy and discharge, defease or otherwise repay or retire all of Level 3 Financing’s US$1.2bn outstanding 8.125% senior notes due 2019 and all of Level 3 Communications’ US$300m 8.875% senior notes due 2019.
The offering is due to be completed on 28 April 2015, subject to customary closing conditions.
In October last year, the company completed its merger with TW Telecom to create a B2B operator with a total enterprise value of US$25bn. Level 3 agreed to buy TW in June for US$5.7bn in cash and stock, and to assume the target’s US$1.6bn debt pile.
Colorado-based Level 3 owns networks and data centres in more than 60 countries as well as global subsea networks. It provides local, national and global communications services to enterprise, government and carrier customers.
