Level 3 Financing Completes Private Offering of Senior Notes

Rhea-AI Summary

CenturyLink Inc. (NYSE: CTL) announced the completion of a private offering of $840 million in 3.625% Senior Notes due 2029 by its subsidiary Level 3 Financing Inc. The proceeds will be utilized for general corporate purposes, including the redemption of $840 million in outstanding Senior Notes. The upcoming redemption involves $140 million of 5.625% Senior Notes and $700 million of 5.125% Senior Notes, effective Sept. 11, 2020. The 2029 Notes are unsecured obligations and were privately placed under the Securities Act.

Positive

• Completion of $840 million Senior Notes offering, enhancing liquidity.
• Proceeds intended for redeeming existing Senior Notes, simplifying debt structure.

Negative

• Redemption of $840 million Senior Notes indicates existing debt levels are significant.
• Potential dilution concerns for shareholders if further capital raising is necessary.

DENVER, Aug. 12, 2020 /PRNewswire/ -- CenturyLink Inc. (NYSE: CTL) announced that Level 3 Financing Inc., its indirect wholly-owned subsidiary ("Level 3 Financing"), completed its previously-announced private offering of $840 million aggregate principal amount of its 3.625% Senior Notes due 2029 (the "2029 Notes").

Level 3 Financing intends to use the net proceeds from the offering, together with cash on hand, for general corporate purposes, including to redeem $840 million aggregate principal amount of its outstanding Senior Notes on the terms described below.

The 2029 Notes are unsubordinated, unsecured obligations of Level 3 Financing, and are guaranteed on an unsecured basis by Level 3 Financing's direct parent, Level 3 Parent LLC. The 2029 Notes were privately placed without being registered under the Securities Act of 1933, as amended.

In connection with completing the offering, Level 3 Financing today issued notices to redeem (i) all $140 million aggregate principal amount of its outstanding 5.625% Senior Notes due 2023 and (ii) all $700 million aggregate principal amount of its outstanding 5.125% Senior Notes due 2023. Pursuant to these notices, on Sept. 11, 2020, all such notes will be redeemed at par plus accrued and unpaid interest to, but excluding, the redemption date. Additional information regarding the redemption of these notes is available from Bank of New York Mellon. This press release does not constitute a notice of redemption with respect to any of Level 3 Financing's outstanding Senior Notes.

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 Statements

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 "estimates," "expects," "anticipates," "believes," "plans," "intends," "will," 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 if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to changes in the cash requirements, financial position, financing plans or investment plans of Level 3 Financing or its affiliates; changes in general market, economic, tax, regulatory or industry conditions; and other risks referenced from time to time in the filings of CenturyLink or Level 3 Parent LLC with the Securities and Exchange Commission ("SEC"). For all the reasons set forth above and in our SEC filings, you are cautioned not to unduly rely upon our forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statement, and is based upon, among other things, existing regulatory, technological, industry, competitive, economic and market conditions, and our assumptions as of such date. 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.

FAQ

What is the purpose of the $840 million Senior Notes offering by CTL?

The offering aims to raise funds for general corporate purposes, including the redemption of existing Senior Notes.

When will the Senior Notes be redeemed?

The redemption date for the outstanding Senior Notes is set for September 11, 2020.

What impact does the Senior Notes offering have on CTL shareholders?

While the offering provides liquidity, it raises concerns of potential dilution for shareholders.

What are the details of the Senior Notes issued by Level 3 Financing?

The notes bear a 3.625% interest rate and are due in 2029, secured on an unsecured basis.

How much debt will CTL be redeeming as part of this offering?

CTL will redeem $840 million in total, which includes $140 million of 5.625% notes and $700 million of 5.125% notes.