Bloomberg News

Level 3 Said to Seek $595.5 Million Loan to Repay 2016 Debt (1)

August 13, 2013

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.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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Companies Mentioned

  • LVLT
    (Level 3 Communications Inc)
    • $44.79 USD
    • 0.08
    • 0.18%
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