Level 3 increases term loan B size, cuts pricing to Libor plus 225 bps

By Sara Rosenberg

New York, Feb. 15 – Level 3 Financing Inc. upsized its seven-year covenant-light term loan B to a range of $3.61 billion to $4.61 billion from an initial amount of $2.61 billion and decreased pricing to Libor plus 225 basis points from Libor plus 250 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the leads on the deal.

Recommitments are due by the close of business on Thursday, the source added.

Proceeds will be used to refinance the company’s $815 million term loan B-3 due in 2019 and its $1,795,500,000 term loan B due in 2020 and, due to the upsizing, to refinance some or all of its $2 billion term loan B-2 due in 2022.

Level 3 is a Broomfield, Colo.-based provider of communications services to enterprise, government and carrier customers.

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