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Level 3 launches tender for $550 million in 12¼% senior notes due 2013
By Devika Patel
Knoxville, Tenn., Jan. 5 - Level 3 Communications, Inc. said it has begun a cash tender offer for all of its $550 million in 12¼% senior notes due 2013.
In connection with the offer, Level 3 also is soliciting consents to amend the notes' indenture and eliminate substantially all of the covenants, some repurchase rights and some events of default.
Holders of notes that are validly tendered prior to 5 p.m. ET on Jan. 19 will receive $1,080 per $1,000 of notes, which includes $1,050 as the tender offer consideration and $30.00 as a consent payment.
The tender offer is scheduled to expire at midnight ET on Feb. 2. Holders of notes that are tendered after the consent time and prior to the expiration date will receive the tender offer consideration but will not receive the consent payment.
Accrued interest up to, but not including, the applicable settlement date will be paid in cash.
Level 3 Financing intends to fund the offer with proceeds from a planned private debt offering and cash on hand.
Any notes that remain outstanding following the tender offer are expected to be redeemed on March 15 at a redemption price of $1,061.25.
The tender offer is conditional on the holders of at least a majority of the notes consenting to the amendments and on the company raising at least $640 million in its planned offering of senior notes.
Global Bondholder Services Corp. is the information agent (212 430-3774 and 866 389-1500). BofA Merrill Lynch at (888 292-0070 and 646 855-3401) and Citi (800 558-3745 and 212 723-6106) are the dealer managers for the tender offer.
Level 3 is a Broomfield, Colo.-based provider of internet protocol services, broadband transport and infrastructure services, collocation services and voice-over-internet-protocol services.
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