Level 3 Communications

(LVLT)

said Thursday that it received a $400 million incremental loan through an expansion of its existing credit facility.

The Broomfield, Colo., bandwidth merchant said the seven-year loan increases the total amount of its senior secured credit facility to about $1.78 billion from $1.38 billion.

J.P. Morgan

,

Goldman Sachs

and

Morgan Stanley Dean Witter

arranged the loan, Level 3 said.

Networking and telecom companies have lately run into some cash flow problems amid the downturn in debt and equity markets, as well as the slowdown in telecom spending, which has

hit a slew of networking gear suppliers like

Corning

(GLW) - Get Report

and

JDS Uniphase

(JDSU)

.

TheStreet.com

recently wrote a story exploring Level 3's

financial health.

Shares of Level 3 closed Wednesday at $15.50 on the

Nasdaq

sharply off the 52-week high of $115.25.