Level 3 Communications' bank debt shot up from the low 90s right up under par following the company's announcement that it is pursuing a $500 million senior note issue and will use proceeds from the offering and cash on hand to repay its credit facility. Traders said the bank debt was changing hands in the 99100 context. The company has approximately $1.125 billion in outstanding bank debt. J.P. Morgan is the administrative agent on the loan. Level 3's bank debt was quoted in the high 60s less than a year ago, according to LoanX. The company expects to complete the offering during the first week of October. Sunit Patel, Level 3's group v.p. and cfo, was traveling and could not be reached. A Level 3 spokesman did not return calls.
Level 3 Springs Toward Par