Daily News: August 3, 2012

Level 3 Announces $1.4 Billion Term Loan Refinancing


Level 3 Communications announced that Level 3 Financing, its wholly owned subsidiary, has completed the marketing of the two new senior secured tranches under its existing senior secured credit facility to fully refinance its existing $1.4 billion senior secured tranche A term loan and, in connection with the refinancing, completed the process of seeking of consents to amend the existing senior secured credit facility to, among other things, allow the refinancing.

According to an 8-K filing, dated November 10, 2011, Merrill Lynch Capital was shown to be the administrative agent and collateral agent for certain other agents and lenders as parties to a credit agreement amendment that included the $1.4 billion tranche A term loan.

The first tranche will be $600 million aggregate principal amount, will bear interest at LIBOR plus 3.25%, with a minimum LIBOR of 1.50%, and will mature in 2016. This first tranche is being priced to the lenders at 99.5% of par. The second tranche will be $815 million aggregate principal amount, will bear interest at LIBOR plus 3.75%, with a minimum LIBOR of 1.50%, and will mature in 2019. This second tranche is being priced to the lenders at 99.0% of par.

Level 3 Financing expects the refinancing and amendment to close on Aug. 6, 2012, subject to the execution of definitive documents and customary closing conditions.

Broombfield, CO-based Level 3 Communications provides local, national and global communications services to enterprise, government and carrier customers.