It's been a busy week for raising capital in the service provider space as both Cogent Communications (Nasdaq: CCOI) and Level 3 Communications (Nasdaq: LVLT) separately announced offerings of private notes.
Low-cost Ethernet provider Cogent Communications announced that it has priced its private placement offering of $175 million in aggregate principal amount of 8.375 percent Senior Notes, which are due in 2018.
Expected to close on Jan. 26, Cogent's latest offering is a $25 million increase over the $150 million offering it announced on Jan. 10.
Level 3 Communications also went to the finance well this week with plans to offer $300 million aggregate principal amount of senior notes. Set to mature in 2019, Level 3 said the notes will bear interest at a fixed rate in a proposed private offering to "qualified institutional buyers."
Both service providers will use the proceeds of their respective offerings for general corporate purposes and/or possible repurchases.
- see the Cogent release
- see the Level 3 release
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