MONROE, La., Nov. 22, 2019 /PRNewswire/ -- CenturyLink,
Inc. (NYSE: CTL) announced that Level 3 Financing, Inc., its
indirect, wholly owned subsidiary ("Level 3 Financing"), has
successfully completed the marketing of the refinancing of its
outstanding $4.61 billion senior
secured Tranche B 2024 Term Loan ("2024 Term Loan").
The 2024 Term Loan is expected to be refinanced with a new
$3.11 billion senior secured Tranche
B 2027 Term Loan which will mature on March
1, 2027 ("2027 Term Loan") and with the proceeds from a
recently announced and priced Level 3 Financing senior secured
notes offering, which includes $750
million aggregate principal amount of its 3.400% Senior
Secured Notes due 2027 and $750
million aggregate principal amount of its 3.875% Senior
Secured Notes due 2029, subject to the execution of definitive
documentation and satisfaction or waiver of customary closing
conditions.
Upon closing, the new 2027 Term Loan will bear interest at LIBOR
plus 1.75 percent, with a zero percent minimum LIBOR, and will
mature on March 1, 2027. The 2027
Term Loan was priced to lenders at par, with the payment to the
lenders at closing of an upfront 25 basis point fee.
Both the 2027 Term Loan and the issuance of the Senior Secured
Notes are expected to be completed on November 29, 2019, subject to the execution of
definitive documentation and the satisfaction or waiver of
customary closing conditions.
Based upon current circumstances and subject to various changes
in conditions, the company expects to account for the refinancing
primarily as an extinguishment of debt and expects that any gain or
loss from the transactions will not be material to its financial
results.
The Senior Secured Notes will not be registered under the
Securities Act of 1933 or any state securities laws in the United States and may not be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements. Accordingly, the Senior Secured Notes are being
offered and sold only to persons reasonably believed to be
qualified institutional buyers in accordance with Rule 144A under
the Securities Act and to non-U.S. persons outside the United States in accordance with
Regulation S under the Securities Act. The Senior Secured Notes
will not have registration rights.
About CenturyLink
CenturyLink (NYSE: CTL) is a
technology leader delivering hybrid networking, cloud connectivity,
and security solutions to customers around the world. Through its
extensive global fiber network, CenturyLink provides secure and
reliable services to meet the growing digital demands of businesses
and consumers. CenturyLink strives to be the trusted connection to
the networked world and is focused on delivering technology that
enhances the customer experience. Learn more
at http://news.centurylink.com/.
Forward Looking Statement:
Except for historical
and factual information, the matters set forth in this release and
other of our oral or written statements identified by words such as
"continues," "estimates," "expects," "anticipates," "believes,"
"plans," "intends," and similar expressions are forward-looking
statements. These forward-looking statements are not guarantees of
future results and are based on current expectations only, are
inherently speculative, and are subject to a number of assumptions,
risks and uncertainties, many of which are beyond our
control. Actual events and results may differ materially from
those anticipated, estimated, projected or implied by us in those
statements. Factors that could affect actual results include but
are not limited to: Level 3 Financing's failure to satisfy or
obtain the waiver of any customary closing conditions relative to
the 2027 Term Loan or Notes; changes in the credit ratings of
CenturyLink or any of its subsidiaries; changes in CenturyLink's or
any of its subsidiaries' cash requirements or financial position;
changes in general market, economic, tax, regulatory or industry
conditions that impact the ability or willingness of Level 3
Financing to consummate the above-described transactions on the
terms described above or at all; Level 3 Financing's continued
access to credit markets on favorable terms; and other risks
referenced from time to time in CenturyLink's filings with the
Securities and Exchange Commission. There can be no assurances that
the above-described transactions will be consummated on the terms
described above or at all. You should be aware that new factors may
emerge from time to time and it is not possible for CenturyLink to
identify all such factors, nor can CenturyLink predict the impact
of each such factor on its plans, or the extent to which any one or
more factors may cause actual results to differ from those
reflected in any forward-looking statements. You are cautioned not
to unduly rely upon our forward-looking statements, which speak
only as of the date made. We may change our intentions, strategies
or plans (including our plans expressed herein) without notice at
any time and for any reason.
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SOURCE CenturyLink, Inc.