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Level 3 upsized $1B 8-year #highyield bonds (B/B3) price to yield 5.375%

Level 3 Communications this afternoon completed its upsized $1 billion offering of eight-year (non-call three) senior notes via Citi (left), Bank of America Merrill Lynch, Morgan Stanley, Barclays, Goldman Sachs, Jefferies, and J.P. Morgan. Terms were finalized at the midpoint of talk, after a $400 million upsize. Proceeds from the deal – along with those from a covenant-lite B term loan – will be used to support Level 3’s planned $7.3 billion purchase of TW Telecom, the company disclosed in an SEC filing last month.

Terms:

Issuer Level 3 Escrow II
Ratings B/B3
Amount $1 billion
Issue senior (144A)
Coupon 5.375%
Price 100
Yield 5.375%
Spread T+324
Maturity Aug. 15, 2022
Call nc3
Trade July 29, 2014
Settle Aug. 12, 2014 (T+10)
Bookrunners Citi/BAML/MS/Barc/GS/Jeff/JPM
Price talk 5.375% area
Notes Upsized by $400 million

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