BROOMFIELD, Colo., May 4 /PRNewswire-FirstCall/ -- Level 3 Communications, Inc. today announced that its wholly owned subsidiary, Level 3 Financing, Inc., has received commitments from lenders to further increase by $60 million the borrowings under the recently completed $220 million Tranche B Term Loan.
Level 3 Financing will amend its existing senior secured credit facility to increase the Tranche B Term Loan by $60 million. All of the terms and conditions of the Tranche B Term Loan, such as the maturity and interest rate, will remain the same. No changes will be made to any of the restrictive covenants contained in the existing senior secured credit facility.
The expected net proceeds of approximately $60 million will be used for general corporate purposes. Level 3 Financing expects to complete the transaction by mid May, subject to customary closing conditions.
Banc of America Securities LLC is acting as Sole Lead Arranger and Sole Bookrunner. Willkie Farr & Gallagher LLP is acting as counsel to Level 3 and Cravath, Swaine & Moore, LLP is acting as counsel to Banc of America Securities LLC and Merrill Lynch Capital Corporation.
About Level 3 Communications
Level 3 Communications, Inc. is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Level 3 offers a portfolio of metro and long-haul services, including transport, data, Internet, content delivery and voice. For more information, visit http://www.level3.com/.
Level 3 Communications, Level 3, the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC and/or its affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein are trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the current uncertainty in the global financial markets and the global economy; disruptions in the financial markets that could affect Level 3's ability to obtain additional financing; as well as the company's ability to: successfully integrate acquisitions; increase the volume of traffic on the network; defend intellectual property and proprietary rights; develop effective business support systems; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
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Level 3 Communications, Inc.
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Web Site: http://www.level3.com/
