By Paul A. Harris
Portland, Ore., March 8 – Level 3 Financing, Inc. priced an upsized $775 million issue of 10-year senior notes (B1/B/BB) at par to yield 5¼% on Tuesday, according to a syndicate source.
The deal size was increased from $500 million.
The yield printed on top of yield talk and in the middle of the 5 1/8% to 5 3/8% initial guidance.
The offering played to significant reverse inquiry, sources said.
The Broomfield, Colo.-based provider of communications services plans to use the cash to repay or retire its 7% senior notes due 2020. Prior to the upsizing the company planned to take out just $500 million of that issue.
Citigroup Global Markets Inc. is the left bookrunner. BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
| Issuer: | Level 3 Financing, Inc.
|
| Amount: | $775 million
|
| Maturity: | March 15, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 344 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until March 15, 2021, then callable at 102.625
|
| Equity clawback: | 40% at 105.25 until March 15, 2019
|
| Change-of-control put: | 101%
|
| Trade date: | March 8
|
| Settlement date: | March 22
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5¼% area
|
| Marketing: | Quick to market
|
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