9 billion in secured financing commitments for the LVLT
Moreover, based on the company's ability to realize anticipated operating cost synergies, the GLBC acquisition positions LVLT
to further improve its credit profile and generate consistent levels of free cash flow.
does not have any significant maturities scheduled during 2012 and Fitch believes LVLT
's cash position is sufficient to address 2013 maturities totalling approximately $172 million while funding anticipated free cash flow deficits during 2012.
Fitch believes the issuance is positive for the company's credit profile as LVLT
continues to address the refinancing risk associated with its 2014 scheduled maturities.
anticipates the transaction will yield annualized cost synergies of approximately $340 million including annualized capital expenditure reduction of $40 million.
1 billion (calculation includes LVLT
and GLBC cash as of June 30 as well as net cash generated from financing activities related to the close of the GLBC acquisition) as of June 30, 2011 on a pro forma basis.
Based on its expectation for stable operating margins and capital intensity metrics substantially similar to those experienced during 2010, Fitch does not expect LVLT
to generate positive free cash flow during 2011 and for the company to generate a minimal amount (less than $50 million) during 2012.
Through the first nine months of 2010, LVLT
increased its capital intensity to 11.
Fitch believes the issuance is a positive event for LVLT
which positions the company to address its remaining maturity during 2011, clears its maturity schedule through June of 2012, and provides additional financial flexibility during a period of expected weak operating performance.
During 2010 Fitch expects that LVLT
will generate less than $50 million of free cash flow.
In addition to the exchange, LVLT
announced that during the second quarter the company used approximately $223 million of cash to repurchase in open market transactions approximately $247 million of debt (principal value) scheduled to mature between 2009 and 2012, including approximately $117 million scheduled to mature during 2009.
Indicative of the synergies LVLT
has achieved, the company expanded its consolidated EBITDA margins by 910 basis points (bps) since the end of the first quarter of 2007.