Level 3 Communications announced its wholly owned subsidiary, Level 3 Financing, completed the marketing of the refinancing of its $2 billion senior secured Tranche B 2022 term loan and received commitments to borrow an aggregate $2.0 billion principal amount of a new senior secured Tranche B-II 2022 term loan.

Upon closing, the new Tranche B-II 2022 term loan will bear interest at LIBOR plus 2.75 percent, with a minimum LIBOR of 0.75%, and will mature on May 31, 2022. The Tranche B-II 2022 term loan was priced to lenders at par, with the payment to the lenders of an upfront 25 basis point fee at closing.

The Tranche B 2022 term loan has an interest rate of LIBOR plus 3.50%, with a minimum LIBOR of 1% and a maturity date of Jan. 31, 2022. The company anticipates saving approximately $20 million of cash interest expense initially, on an annualized basis.

As a result of this transaction, along with capital markets transactions completed earlier this quarter, the company expects to recognize a loss in the second quarter of 2015 of approximately $176 million on extinguishment of debt.

The closing of the refinancing transaction is expected to be completed on May 8, 2015, subject to execution of definitive documentation and customary closing conditions.

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