Level 3 Communications successfully completed the refinancing of its senior secured Tranche B 2019 Term Loan.
The $815 million Tranche B-III 2019 Term Loan will bear interest at LIBOR plus 3.00 percent, with a minimum LIBOR of 1.00 percent, and will mature on Aug. 1, 2019. The term loan is being priced to lenders at par. The previous Tranche B 2019 Term Loan had an interest rate of LIBOR plus 3.75 percent, with a minimum LIBOR of 1.50 percent and matured on Aug. 1, 2019. With the reduction in interest rates as a result of this transaction, the company expects to save approximately $10 million of cash interest expense on an annualized basis.
