Published on 6/10/2020 in the Prospect News High Yield Daily.
New Issue: Level 3 prices upsized $1.2 billion 4¼% eight-year notes at par
By Paul A. Harris
Portland, Ore., June 10 – Level 3 Financing, Inc. priced an upsized $1.2 billion issue of eight-year senior notes (Ba3/BB/BB) at par to yield 4¼% on Wednesday, according to market sources.
Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, Citizens Capital Markets Inc., MUFG, Regions Securities LLC and Deutsche Bank Securities Inc.
The issue size increased from $1 billion.
The yield printed in the middle of yield talk in the 4¼% area and at the wide end of the 4% to 4¼% initial talk.
The Broomfield, Colo.-based telecom, an indirect subsidiary of CenturyLink, plans to use the proceeds plus cash on hand to redeem $840 million of its 5 3/8% notes due 2022 and partially redeem its 5 5/8% notes due 2023, both issues callable at par.
| Issuer: | Level 3 Financing, Inc.
|
| Amount: | $1.2 billion, increased from $1 billion
|
| Maturity: | July 1, 2028
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| Securities: | Senior notes
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc., Mizuho Securities USA Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, Citizens Capital Markets Inc., MUFG, Regions Securities LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 4¼%
|
| Price: | Par
|
| Yield: | 4¼%
|
| Spread: | 369 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until July 1, 2023, then callable at 102.125
|
| Equity clawback: | 40% at 104.25 until July 1, 2023
|
| Trade date: | June 10
|
| Settlement date: | June 15
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| Ratings: | Moody's: Ba3
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| S&P: BB
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| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4¼% area
|
| Marketing: | Drive-by
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