Level 3 Selling $500M in HY Drive-By.(News)

Byline: Matthew Sheahan

Level 3 Communications is offering $500 million in high yield bonds, the proceeds of which will be used to refinance the debt of a company it is acquiring, the provider of data, Internet and other communication services said today.

The deal-a private offering of senior notes due 2019-will likely price today via drive-by, according to sources. Lead bookrunner Citigroup is joined by Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and Morgan Stanley.

The proceeds will go to refinance the debt of Global Crossing, which Level 3 is in the process of acquiring. The funds will be placed in an escrow account pending the successful close of the deal.

Level 3 sold $500 million (upsized from $300 million) in 9.375% senior notes due 2019 in March (LFN, March 2, 2011).