Plus   Neg

Level 3 Communications Plans To Offer $640 Mln Of Senior Notes; Backs FY09 Adj. EBITDA Outlook - Quick Facts

Level 3 Communications Inc. (LVLT) announced that its subsidiary, Level 3 Financing Inc., plans to offer $640 million aggregate principal amount of senior notes that will mature in 2018. The net proceeds from the offering will be used to fund Level 3 Financing's purchase of its 12.25% Senior Notes due 2013 in a concurrent tender offer and consent solicitation.

In a separate press release, Level 3 Communications announced that its subsidiary, Level 3 Financing Inc., has commenced a tender offer to purchase for cash any and all of the $550 million in aggregate principal amount outstanding of its 12.25% Senior Notes due 2013.

Holders of Notes that are validly tendered prior to Jan. 19, 2010, unless extended or earlier terminated , and accepted for purchase, will receive the total consideration of $1,080.00 per $1,000.00 principal amount of the Notes, which includes $1,050.00 as the tender offer consideration and $30.00 as a consent payment. The tender offer is scheduled to expire on February 2, 2010, unless extended or earlier terminated.

In addition, the company confirmed its previously issued expectation of Consolidated Adjusted EBITDA of $900 million to $950 million for the full year 2009. The company also expects to be approximately Free Cash Flow neutral for 2009 in the aggregate. In addition, for the fourth quarter 2009, the company continues to expect improvement in the sequential performance of Core Network Services revenue.

For comments and feedback contact: editorial@rttnews.com

Follow RTT