Level 3 Reports Refinancing of $595.5M Tranche B 2016 Term Loan, Expecting Loss of $0.04/Share

Level 3 Communications, Inc. LVLT today announced that its subsidiary, Level 3 Financing, Inc., 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. The $595.5 million Tranche B 2020 Term Loan will bear interest at LIBOR plus 3.00 percent, with a minimum LIBOR of 1.00 percent, and will mature on Jan. 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 percent, with a minimum LIBOR of 1.50 percent and a maturity date of Aug. 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 expects to incur a loss on the refinancing of $9 million and approximately $0.04 per share in the third quarter 2013. The closing of the refinancing transaction is expected to be completed later today, subject to execution of definitive documentation and customary closing conditions.