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Subsequent Events (Notes)
3 Months Ended
Mar. 31, 2015
Subsequent Event [Abstract]  
Subsequent Events [Text Block]
Subsequent Events

On April 1, 2015, all of the outstanding principal amount of the 9.375% Senior Notes Due 2019 was redeemed at a redemption price equal to 104.688% of the principal amount. To fund the redemption of these notes, Level 3 Financing used the net proceeds, along with cash on hand, from the issuance on January 29, 2015 of its 5.625% Senior Notes due 2023.  The Company will recognize a loss on extinguishment of debt of approximately $36 million in Other, net in the second quarter of 2015 as a result of the redemption of the 9.375% Senior Notes due 2019.
On April 28, 2015, Level 3 Financing issued $700 million aggregate principal amount of its 5.125% Senior Notes due 2023 (the "2023 Notes") and $800 million aggregate principal amount of its 5.375% Senior Notes due 2025 (the "2025 Notes") in a private offering. The 2023 Notes were priced at par and mature on May 1, 2023, and will pay interest on March 1 and September 1 of each year beginning on September 1, 2015. The 2025 Notes were priced at par and mature on May 1, 2025, and will pay interest on March 1 and September 1 of each year beginning on September 1, 2015.
The net proceeds from the offering of the 2023 Notes and 2025 Notes together with cash on hand, will be used to redeem all $1.2 billion aggregate principal amount of Level 3 Financing’s 8.125% Senior Notes due 2019 and all $300 million aggregate principal amount of the Company's 8.875% Senior Notes due 2019. In the second quarter 2015, the Company expects to recognize a loss on extinguishment of debt of approximately $100 million as a result of these transactions that will be recognized in Other, net.
On May 8, 2015, Level 3 Financing completed the refinancing of its $2 billion senior secured Tranche B Term Loan due 2022 with an aggregate $2 billion principal amount of a new senior secured Tranche B-II 2022 Term Loan ("Tranche B-II 2022 Term Loan"). The Tranche B-II 2022 Term Loan bears interest at LIBOR plus 2.75 percent, with a minimum LIBOR of 0.75 percent, and will mature on May 31, 2022. The Tranche B-II 2022 Term Loan was priced to lenders at par, with the payment to the lenders of an upfront fee of 25 basis points at closing. In the second quarter 2015, the Company expects to recognize a loss on modification and extinguishment of debt of approximately $27 million as a result of this transaction that will be recognized in Other, net.