For this Thursday morning, let's quickly review a few bits of network-related news that is worth a look:
Level 3 got a bit of refinancing done this week. They are selling $775M in 5.25% senior notes due 2026, and will be using the proceeds to pay off $775M in outstanding 7% senior notes due 2020. The move will push out a chunk of their debt maturity by 6 years while reducing the interest payments by about $13.5M annually, and is the sort of thing we've been watching them do a couple times a year for a decade. Over the past few years though, the interest rates have fallen dramatically in a virtuous circle driven by higher cash flows.
Phonoscope LIGHTWAVE says it has a new federal contract feather in its cap this week. The Houston metro network operator has been awarded a 5 year IT Schedule 70 GSA contract under which they'll be offering a range of services from dark fiber on up to VoIP to federal agencies and such. The pre-approval positions them for a bit of growth in the federal sector, which for a single market operator could definitely move the needle.
Over in the UK, CityFibre has a new national partner to help it take all those metro fiber assets to market. Updata, part of Capita IT Enterprise Services, has signed a national framework agreement under which it will be able to access CityFibre's networks to service its enterprise and government customers. CityFibre will be busy this year integrating the KCOM network assets it bought in December.
And Global Capacity has a new channel partner to help it take its unique blend of connectivity products to market. Telarus has signed on in a strategic channel partnership agreement, bringing its network of agents, VARs, and managed service providers into the picture. Global Capacity has spent the last year integrating the wholesale network business it acquired from MegaPath. They might be ready for another such deal soon, although from here their path might be more of the organic variety.