Level 3 exchanges $169 million convertibles for equity

New York, Nov. 14 - Level 3 Communications, Inc. said it has exchanged $169 million of its convertible subordinated notes for common stock valued at $61 million.

The Broomfield, Colo. communications company said that the figures for the exchange, disclosed in a Securities and Exchange Commission filing, were through Sept. 30.

The swaps follow an amendment by Level 3 to its senior secured credit facility to allow outstanding debt to be exchange for stock, a change that was announced on July 26, 2001.

Level 3 said the convertible-for-equity exchanges are part of its effort to take advantage of the discounts at which its senior notes, senior discount notes and convertible subordinated notes are trading.

Level 3 last month completed a modified dutch auction tender offer for its debt in which it repurchased $1.7 billion face value of senior debt and convertibles for $731 million.

The company said in the SEC filing that it may continue to make repurchases of its senior notes, senior discount notes and convertible subordinated notes in order to reduce future cash interest payments and amounts due at maturity. The repurchases may be for cash or stock, the company said and may be in open market or privately negotiated transactions.

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