PR Archives:  LatestBy Company By Date

Press Release -- May 6th, 2015
Source: Level 3 Communications

Level 3 Announces Refinancing of $2.0 Billion Tranche B 2022 Term Loan


May 6, 2015

BROOMFIELD, Colo., May 6, 2015 /PRNewswire/ — Level 3 Communications, Inc. (NYSE:LVLT, news, filings) today announced that its wholly owned subsidiary, Level 3 Financing, Inc., has successfully completed the marketing of the refinancing of its $2.0 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 percent, 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 percent, with a minimum LIBOR of 1.00 percent 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.

About Level 3 Communications
Level 3 Communications, Inc. (NYSE:LVLT) is a Fortune 500 company that provides local, national and global communications services to enterprise, government and carrier customers. Level 3’s comprehensive portfolio of secure, managed solutions includes fiber and infrastructure solutions; IP-based voice and data communications; wide-area Ethernet services; video and content distribution; data center and cloud-based solutions. Level 3 serves customers in more than 500 markets in over 60 countries over a global services platform anchored by owned fiber networks on three continents and connected by extensive undersea facilities. For more information, please or get to know us on Twitter, Facebook and LinkedIn.

© Level 3 Communications, LLC. All Rights Reserved. Level 3, Level 3 Communications, Level (3) and the Level 3 Logo are either registered service marks or service marks of Level 3 Communications, LLC and/or one of its Affiliates in the United States and elsewhere. Any other service names, product names, company names or logos included herein are the trademarks or service marks of their respective owners. Level 3 services are provided by subsidiaries of Level 3 Communications, Inc.

Forward-Looking Statement
Some statements made in this press release are forward-looking in nature and are based on management’s current expectations or beliefs. These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3’s control, which could cause actual events to differ materially from those expressed or implied by the statements. Important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the company’s ability to: successfully integrate the tw telecom acquisition; manage risks associated with continued uncertainty in the global economy; increase revenue from its services to realize its targets for financial and operating performance; maintain and increase traffic on its network; develop and maintain effective business support systems; manage system and network failures or disruptions; avert the breach of its network and computer system security measures; develop new services that meet customer demands and generate acceptable margins; manage the future expansion or adaptation of its network to remain competitive; defend intellectual property and proprietary rights; manage continued or accelerated decreases in market pricing for communications services; obtain capacity for its network from other providers and interconnect its network with other networks on favorable terms; attract and retain qualified management and other personnel; successfully integrate future acquisitions; effectively manage political, legal, regulatory, foreign currency and other risks it is exposed to due to its substantial international operations; mitigate its exposure to contingent liabilities; and meet all of the terms and conditions of its debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact Information



Ashley Pritchard  

Mark Stoutenberg

+1 720-888-5950

+1 720-888-2518                  

Level 3 Communications.

Logo –

SOURCE Level 3 Communications, Inc.

PR Archives: Latest, By Company, By Date