Level 3 Communications, Inc. ( LVLT ) today announced that its wholly owned subsidiary, Level 3 Financing, Inc., has received commitments from lenders to increase the borrowings under its existing $1.4 billion senior secured credit facility through the creation of a $220 million Tranche B Term Loan.
Level 3 Financing will amend and restate its existing senior secured credit facility to include a new $220 million Tranche B Term Loan, which will mature along with the original $1.4 billion term loan on March 13, 2014. Interest on the Tranche B Term Loan will be equal to LIBOR plus 850 bps with LIBOR set at a minimum of 3.00 percent. No changes will be made to any of the restrictive covenants contained in the existing senior secured credit facility.
The expected net proceeds of approximately $214 million will be used for general corporate purposes. Level 3 Financing expects to complete the transaction by mid April, subject to customary closing conditions.
Banc of America Securities LLC is acting as Sole Lead Arranger and Sole Bookrunner. Willkie Farr & Gallagher LLP is acting as counsel to Level 3 and Cravath Swaine & Moore LLP is acting as counsel to Banc of America Securities LLC.
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