Level 3 Communications, Inc. announced that its wholly owned subsidiary, Level 3 Financing, Inc., has received commitments from lenders to further increase by $60 million the borrowings under the recently completed $220 million Tranche B Term Loan.
Level 3 Financing will amend its existing senior secured credit facility to increase the Tranche B Term Loan by $60 million. All of the terms and conditions of the Tranche B Term Loan, such as the maturity and interest rate, will remain the same. 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 $60 million will be used for general corporate purposes. Level 3 Financing expects to complete the transaction by mid May, 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 and Merrill Lynch Capital Corporation.
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