Level 3 Communications announced that its subsidiary, Level 3 Financing, Inc., has 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 3.00 percent, with a minimum LIBOR of 1.00 percent, and will mature on Aug. 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 Aug. 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.

As a result of the transaction, the company expects to incur a loss on the refinancing of $9 million and approximately $0.04 per share in the third quarter 2013. The closing of the refinancing transaction was completed on Aug. 12, 2013, subject to execution of definitive documentation and customary closing conditions.

Level 3 Communications, Inc.is a Fortune 500 company that provides local, national and global communications services to enterprise, government and carrier customers. Level 3's comprehensive portfolio of secure, managed solutions includes fiber and infrastructure solutions; IP-based voice and data communications; wide-area Ethernet services; video and content distribution; data center and cloud-based solutions. Level 3 serves customers in more than 500 markets in 55 countries over a global services platform anchored by owned fiber networks on three continents and connected by extensive undersea facilities.