J.P. Morgan Chase, Goldman Sachs, and Morgan Stanley Dean Witter launched syndication of a $400 million add-on term loan "C" to Level 3 Communications'existing $1.375 billion credit last week. Bankers noted that the strength of Level 3, reflected in its loans currently trading at 97/98, may prompt institutions to hold on to the existing term loan "B" priced at LIBOR plus 31/2 %. Calls to banks were not returned by press time.
Other bankers said pricing is attractive especially with a three-two-one call premium added to the deal. "There's a window opening in this market because there is such a short supply of paper institutions can buy," said one banker.