Level 3 Financing Inc. (LVLT:US), a unit of the U.S. telecommunications company with operations in 55 countries, is seeking a $595.5 billion term loan due in 2020 to repay bank debt that comes due in 2016, according to a person with knowledge of the transaction.
Bank of America Corp., Citigroup Inc., Morgan Stanley, Credit Suisse Group AG, Jefferies Group Inc., and JPMorgan Chase & Co. are arranging the financing and will host a lender meeting at 10:30 a.m. today in New York, said the person, who asked not to be identified because the information is private.
Level 3, based in Broomfield, Colorado, yesterday said it refinanced an $815 million term portion at 3 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, down from 3.75 percentage points more than Libor with a 1.5 percent floor.
The company’s debt due in 2016 currently pays interest at 3.25 percentage points more than Libor with a 1.5 percent minimum on the lending benchmark, according to data compiled by Bloomberg.
Lenders to the new financing will have to let the banks know by 5 p.m. tomorrow if they will participate in the deal, the person said.
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