Level 3 Announces Pricing of $1.2 Billion Term Loan Refinancing

Level 3 Communications LVLT today announced that its subsidiary, Level 3 Financing, Inc., has successfully completed the marketing of its new senior secured Tranche B-II 2019 Term Loan to fully refinance its existing Tranche B II Term Loan and Tranche B III Term Loan under its existing senior secured credit facilities. The $1.2 billion Tranche B-II 2019 Term Loan will bear interest at LIBOR plus 3.25 percent, with a minimum LIBOR of 1.50 percent, and will mature on Aug. 1, 2019. The term loan is being priced to lenders at par. The existing Tranche B II and Tranche B III term loans have interest rates of LIBOR plus 4.25 percent, with a minimum LIBOR of 1.50 percent and were due to mature in 2018. As a result of this refinancing, the company expects to save approximately $12 million of cash interest payments per year. The closing of the refinancing transaction is scheduled to be completed on Oct. 4, 2012, subject to execution of definitive documentation and customary closing conditions.