Broomfield, Colorado – (The Hosting News) – March 5, 2007 – Colocation, VoIP, and Internet backbone company, Level 3 Communications, has called for redemption all of its outstanding $487,801,000 aggregate principal amount of 12 7/8% Senior Notes, due 2010.
All of these senior notes will be redeemed by the company on March 16, 2007, at a price equal to 102.146% of the principal amount. All of its outstanding $95,821,000 of 11.25% Senior Notes due 2010, are listed at a price equal to 101.875% of principal amount thereof and all of its outstanding euro 104,325,000 of 11.25% Senior Euro Notes due 2010 at a price equal to 101.875% of principal amount thereof. The company will pay accrued and unpaid interest on the senior notes to but not including the redemption date. Additional information regarding the redemption of these notes is available from The Bank of New York, the trustee with respect to these issues of notes.
Level 3 also announced that its wholly owned subsidiary, Level 3 Financing, Inc., has commenced a tender offer to purchase for cash any and all of Level 3 Financing’s $150 million Floating Rate Notes due 2011 for a price equal to $1,080.00 per $1,000 principal amount of the notes, which includes $1,050.00 as the tender offer consideration and $30.00 as a consent payment (the “Level 3 Financing Tender Offer”). Additionally, the company commenced a tender offer to purchase for cash any and all of its $78 million aggregate principal amount of 11% Senior Notes due 2008 for a price equal to $1,054.28 per $1,000 principal amount of the notes, which includes $1,024.28 as the tender offer consideration and $30.00 as a consent payment (the “Level 3 Inc. Tender Offer,” and together the “Tender Offers.”)
In connection with the Tender Offers, Level 3 and Level 3 Financing are soliciting consents to certain proposed amendments to the respective indentures governing the notes that are subject to the Tender Offers to eliminate substantially all of the covenants, certain repurchase rights, certain discharge rights and certain events of default and related provisions contained in those indentures.
With respect to the Level 3 Financing Tender Offer and the Level 3 Inc. Tender Offer, holders of notes validly tendered prior to 12:01 a.m., New York City time on March 1, 2007, unless extended or earlier terminated (the “Consent Time”), if such notes are accepted for purchase, will receive the total consideration. The tender offer is scheduled to expire at 12:01 a.m., New York City time, on March 15, 2007, unless extended or earlier terminated (the “Expiration Date”). Payment for notes validly tendered on or prior to the Consent Time and accepted for purchase will be made promptly after the Consent Time. Holder of notes who validly tender after the Consent Time but prior to the Expiration Date, if such notes are accepted for purchase, will receive the tender offer consideration but will not receive the consent payment. Payment for notes validly tendered after the Consent Time and on or prior to the Expiration Date and accepted for purchase will be made promptly after the Expiration Date. Accrued interest up to, but not including, the applicable settlement date will be paid in cash on all validly tendered and accepted notes.
The Tender Offers are also subject to the satisfaction or waiver of certain other conditions as set forth in the Offer to Purchase. It is a condition to the consummation of the Tender Offers that the holders of at least majority of the outstanding aggregate principal amount of the notes consent to the amendments to the indenture governing those notes.
Merrill Lynch and Co. is the Dealer Manager for the Tender Offers. Questions regarding the Tender Offers may be directed to Merrill Lynch and Co. at (888) 654-8637 (toll-free) and 212-449-4914.
Level 3 Communications, Inc., an international communications company, operates one of the largest Internet backbones in the world. Through its customers, Level 3 is the primary provider of Internet connectivity for millions of broadband subscribers. The company provides a comprehensive suite of services over its broadband fiber optic network including Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice services and voice over IP services. The services are designed to provide building blocks that enable Level 3’s customers to meet growing demands for advanced communications solutions.The principal components offered by Level 3’s (3)VoIP Enhanced Local service include network trunking, local telephone numbers, local number portability, the safety of E-911, operator assistance, caller ID, directory listings, and directory assistance. The service is designed to allow Level 3 customers to retain the flexibility to manage and control end-user features without the difficulties of implementing complex interconnection arrangements.
For more information about Level 3, please visit: www.level3.com.