Level 3 Communications, Inc. (NYSE: LVLT) subsidiary Level 3 Financing, Inc. has completed the marketing of the refinancing of all of its outstanding USD 4.61bn senior secured term loans through the issuance of a new Tranche B 2024 Term Loan in the amount of USD 4,610,500,000, the company said.
The terms loans being refinanced are the Tranche B-III 2019 Term Loan, the Tranche B 2020 Term Loan and the Tranche B-II 2022 Term Loan.
Upon closing, the new Tranche B 2024 Term Loan will bear interest at LIBOR plus 2.25 percent, with a zero percent minimum LIBOR, and will mature on February 22, 2024. The Tranche B 2024 Term Loan was priced to lenders at par, with the payment to the lenders at closing of an upfront 25 basis point fee.
The company anticipates saving approximately USD 35m of cash interest expense initially, on an annualized basis.
As a result of this transaction, the company expects to account for the refinancing as an extinguishment of debt and recognize a non-cash loss of USD 45M in the first quarter of 2017.
The closing of the refinancing transaction is expected to be completed on February 22, 2017, subject to execution of definitive documentation and customary closing conditions.