CenturyLink gets $440 million term loan due 2019 with CoBank

By Angela McDaniels

Tacoma, Wash., April 20 - CenturyLink, Inc. received a $440 million term loan due April 18, 2019 on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The term loan is payable in 29 consecutive quarterly installments of $5.5 million each plus interest beginning June 30. The remaining $286 million plus interest will be paid at maturity unless the term loan is extended.

The interest rate is Libor plus 150 basis points to 250 bps. The exact spread over Libor depends on the company's senior long-term debt ratings.

CoBank, ACB is the administrative agent, bookrunner and arranger.

The term loan is guaranteed by subsidiaries Embarq Corp. and Qwest Communications International Inc. and one of Qwest Communications International's wholly owned subsidiaries.

The financial covenants cap the company's ratio of consolidated total funded debt to consolidated EBITDA at 4 times and require its ratio of consolidated EBITDA to the sum of consolidated interest expense and preferred stock dividends to be less than 1.5 times.

CenturyLink is a telecommunications company based in Monroe, La.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.