Colocation Web Host, VoIP Firm, Level 3, Engages in Senior Note Private Offering
Broomfield, Colorado – (The Hosting News) – January 2, 2007 – Colocation, VoIP, and Internet backbone company, Level 3 Communications subsidiary, Level 3 Financing, Inc., will sell Senior Notes in the aggregate principal amount of $650 million, at 9.25%.
The senior notes were priced at 101.75% of the principal amount plus accrued interest from October 30, 2006, representing an effective yield of 8.86% to the purchasers of these senior notes. Due 2014, the Notes will be part of a private offering to ”qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and outside the United States under Regulation S under the Securities Act of 1933.
The senior notes represent an additional offering of the 9.25% Senior Notes due 2014 that were issued on October 30, 2006. The notes are being offered as additional notes under the same indenture as the 9.25% Senior Notes issued on October 30, 2006, and will be treated under that indenture as a single series of notes with the outstanding 9.25% Senior Notes. The debt represented by the new notes will be used to (i) purchase Level 3 Financing’s 10.75% Senior Notes due 2011 tendered in a tender offer, which was launched by Level 3 Financing, (ii) to the extent that less than all of the 10.75% Senior Notes due 2011 are purchased in the tender offer, to effect a satisfaction and discharge under the indenture governing the 10.75% Senior Notes due 2011 or otherwise repurchase in any lawful manner those 10.75% Senior Notes due 2011 that remain outstanding after the tender offer, and (iii) pay fees and expenses incurred in connection with the transaction.
Gross proceeds from the offering of senior notes that exceed the amount necessary to repurchase or refinance the 10.75% Senior Notes due 2011, will constitute purchase money indebtedness under the existing indentures of Level 3 and will be used solely to fund the cost of construction, installation, acquisition, lease, development or improvement of any Telecommunications/IS Assets (as defined in the existing indentures of Level 3), including the cash purchase price of any past, pending or future acquisitions. The senior notes will not be registered under the Securities Act of 1933 or any state securities laws and, unless so registered, may not be offered or sold except pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.
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.
About The Author TheHostingNews.com is your premiere source of daily web hosting news and source for finding web hosting industry information. Read more from this authorRelated posts:
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