(By Balaseshan) Level 3 Communications Inc. (NYSE:LVLT) said its Financing unit has completed the marketing of the two new senior secured tranches to fully refinance its existing $1.4 billion senior secured Tranche A term loan.
The Broomfield, Colorado-based communications services company also said Level 3 Financing has completed the process of seeking of consents to amend the existing senior secured credit facility to, among other things, allow the refinancing.
The first tranche will be $600 million aggregate principal amount, will bear interest at LIBOR plus 3.25 percent, with a minimum LIBOR of 1.50 percent, and will mature in 2016. This first tranche is being priced to the lenders at 99.5 percent of par, Level 3 said.
The second tranche will be $815 million aggregate principal amount, will bear interest at LIBOR plus 3.75 percent, with a minimum LIBOR of 1.50 percent, and will mature in 2019. This second tranche is being priced to the lenders at 99.0 percent of par.
The company expects the refinancing and amendment to close on August 6.
Level 3 Communications provides services including transport, infrastructure and data services. It mainly serves domestic and international carriers; voice service providers; wireless providers; enterprises; broadband cable television operators; Internet Service Providers, among others.
Shares fell 3.26 percent to trade at $18.39 on Thursday.