Tuesday July 29, 2014 0 comments
BROOMFIELD - Level 3 Communications (NYSE: LVLT) today announced Level 3 Escrow II, Inc., a wholly-owned subsidiary, plans to offer $600 million in senior notes to help finance the company's tw telecom acquisition.
Level 3 announced last month its intention to acquire Littleton-based tw telecom.
The aggregate principal amount of the senior notes will mature in 2022 and bear interest at a fixed rate in a proposed private offering to "qualified institutional buyers" as defined under the Securities Act of 1933, the company said.
The offering's gross proceeds will be deposited in a segregated escrow account until the date on which certain escrow conditions are satisfied, Level 3 said.
If the escrow conditions are not satisfied before June 15, 2015 (or any earlier date on which Level 3 determines that any of such escrow conditions cannot be satisfied), Level 3 said it will be required to redeem the notes.
Following the release of the escrowed funds in connection with the assumption of the notes by Level 3 Financing, the net proceeds will be used to finance the cash portion of the merger consideration payable to tw telecom stockholders and to refinance certain existing indebtedness of tw telecom, Level 3 said.