This morning Level 3 Communications (NYSE:LVLT, news, filings) said it was looking to raise $350M in a private offering of senior notes due 2020. By the end of the day though, the offering seems to have grown just a bit as a Bloomberg note now says they are raising a refinancing war chess of $900M at 8.625% -- an extra mere $550M. Apparently while the stock market has not been treating the company well lately, the debt markets are quite happy with them.
The money is aimed at refinancing their 9.25% senior notes due 2014, of which just over $800M remained on the books as of the end of Q3 - so they'll now be able to take it all out with some left over. Level 3 has been suggesting that it would take further refinancing actions like this since completing the Global Crossing transaction. Current rates and their new balance sheet are enabling them to reduce net interest expense and they've always been aggressive in pushing back their debt load in advance.
The company also finally put pro-forma Q3 numbers out there in an SEC filing, giving me enough information to start to throw together a new post-GLBC financial model for the company - there had been so many moving parts before as to make the effort more art than science. I'll see if I can churn that out in the next week or two
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