Level 3 Communications announced that its subsidiary, Level 3 Financing, successfully completed the refinancing of its senior secured tranche B 2019 term loan.

The $815 million tranche B-III 2019 term loan will bear interest at LIBOR plus 3%, with a minimum LIBOR of 1%, and will mature on August 1, 2019.

The term loan is being priced to lenders at par. The previous tranche B 2019 term loan had an interest rate of LIBOR plus 3.75 percent, with a minimum LIBOR of 1.50 percent and matured on August 1, 2019. With the reduction in interest rates as a result of this transaction, the company expects to save approximately $10 million of cash interest expense on an annualized basis.

In a related Bloomberg story, the company reportedly is seeking a seven-year $595.5 billion term loan, citing a person familiar with the transaction. According to Bloomberg, Bank of America, Citigroup, Morgan Stanley, Credit Suisse Group AG, Jefferies Group and JPMorgan Chase are arranging the financing.

Level 3 Communications provides local, national and global communications services to enterprise, government and carrier customers.

To read the entire Bloomberg story, click here.