Level 3 Communications announced that its subsidiary, Level 3 Financing, has successfully completed the marketing of the refinancing of its senior secured tranche B 2016 term loan, which follows the successful refinancing of its $815 million tranche B 2019 term loan.

According to a related 8-K filing, Merrill Lynch Capital is shown as administrative agent and collateral agent for the transactions noted above.

The $595.5 million tranche B 2020 term loan will bear interest at LIBOR plus 3.00%, with a minimum LIBOR of 1.00%, and will mature on January 15, 2020. The term loan was priced to lenders at par. The tranche B 2016 term loan has an interest rate of LIBOR plus 3.25%, with a minimum LIBOR of 1.50% and a maturity date of August 1, 2016. With the expected reduction in interest rates as a result of this transaction, the company anticipates saving approximately $4.5 million of cash interest expense on an annualized basis.

As a result of the transaction, the company said it expects to incur a loss on the refinancing of $9 million.

Previously on abfjournal: BofA, Others Said to Arrange New Level 3 Communications Term Loan, August 14, 2013