MONROE, La., Dec. 2, 2019 /PRNewswire/
-- CenturyLink, Inc. (NYSE: CTL) announced that
Level 3 Financing, Inc., its indirect, wholly owned subsidiary
("Level 3 Financing"), entered into indentures with Bank of New
York Mellon Trust Company, N.A., as trustee, in connection with
Level 3 Financing's issuance of $750
million aggregate principal amount of its 3.400% Senior
Secured Notes due 2027 ("2027 Notes") and $750 million aggregate principal amount of its
3.875% Senior Secured Notes due 2029 ("2029 Notes", and together
with the 2027 Notes, "Senior Secured Notes").
CenturyLink also announced that Level 3 Financing completed the
issuance of a new $3.11 billion
Tranche B 2027 Term Loan ("2027 Term Loan").
The net proceeds from the offering of the Senior Secured Notes
and the 2027 Term Loan issuance, plus cash on hand, were used to
refinance Level 3 Financing's $4.61
billion senior secured Tranche B 2024 term loan. 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 2027 Notes were priced to investors at 99.780 percent of
their principal amount and will mature on March 1, 2027. The 2029 Notes were priced
to investors at 99.985 percent of their principal amount and will
mature on November 15, 2029.
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.
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. The Senior Secured Notes were 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 do 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: 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; 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. 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.