By Cristal Cody
Tupelo, Miss., Nov. 15 – Level 3 Financing Inc. parent CenturyLink, Inc. provided additional details on Friday of a $1.5 billion two-part offering of split-rated senior secured notes (Ba1/BBB-/BBB-) that priced on Thursday.
The company sold $750 million of 3.4% notes due March 1, 2027 at 99.78 and a spread of 170 basis points over Treasuries, on the tight side of guidance in the 175 bps spread area.
A $750 million tranche of 3.875% notes due Nov. 15, 2029 priced at 99.985 and a Treasuries plus 205 bps spread.
Guidance was in the Treasuries plus 210 bps area.
BofA Securities, Inc. and Citigroup Global Markets Inc. were the bookrunners.
The notes are guaranteed by parent company Level 3 Parent, LLC and certain domestic subsidiaries.
Proceeds will be used to repay or retire a portion of the $4.61 billion of senior secured tranche B 2024 term loans outstanding under the company’s existing senior secured credit facility.
Broomfield, Colo.-based Level 3 Financing, an indirect subsidiary of CenturyLink, provides telecommunications services.
| Issuer: | Level 3 Financing Inc.
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| Guarantors: | Level 3 Parent, LLC and certain domestic subsidiaries
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| Amount: | $1.5 billion
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| Description: | Senior secured notes
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| Bookrunners: | BofA Securities, Inc. and Citigroup Global Markets Inc.
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| Trade date: | Nov. 14
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| Settlement date: | Nov. 29
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Fixed income investor calls
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| Seven-year notes
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| Amount: | $750 million
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| Maturity: | March 1, 2027
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| Coupon: | 3.4%
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| Price: | 99.78
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| Spread: | Treasuries plus 170 bps
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| Price talk: | Treasuries plus 175 bps, plus or minus 5 bps; initial talk at Treasuries plus 200 bps area
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| 10-year notes
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| Amount: | $750 million
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| Maturity: | Nov. 15, 2029
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| Coupon: | 3.875%
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| Price: | 99.985
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| Spread: | Treasuries plus 205 bps
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| Price talk: | Treasuries plus 210 bps, plus or minus 5 bps; initial talk at Treasuries plus 225 bps area
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