Level 3 Tender Offers Finalized
Broomfield, Colorado – (The Hosting News) – March 9, 2007 – Colocation, VoIP, and Internet backbone company, Level 3 Communications, has accepted tenders and consents for approximately 89% of the aggregate principal amount outstanding of the 10 3/4% Notes, in connection with the recent tender offer and consent solicitation.
Level 3 Communications, Inc. entered into a Supplemental Indenture (the “Supplemental Indenture”) amending the Indenture, between Level 3 and The Bank of New York, as Trustee, relating to the Notes (the “10 3/4% Note Indenture”). The Supplemental Indenture was entered into by Level 3 and The Bank of New York, as Trustee. The Supplemental Indenture amends the 10 3/4% Note Indenture to eliminate substantially all of the covenants and certain events of default and related provisions contained in the Indenture.
The tender offer for the 10 3/4% Notes (the “10 3/4% Tender Offer”) is scheduled to expire at 12:01 a.m., New York City time, on March 20, 2007 (the “Expiration Date”). Notes tendered in the 10 3/4% Tender Offer after the Consent Time, but prior to the Expiration Date will not receive a consent payment. Notes tendered in the 10 3/4% Tender Offer on or prior to the Consent Time may no longer be withdrawn.
Level 3 also announced that, as part of its previously announced tender offer (the “11.5% Tender Offer” and, together with the 10 3/4% Tender Offer, the “Tender Offers”) to purchase for cash any and all of its outstanding 11.5% Senior Notes due 2010 (the “11.5% Notes”), as of the Consent Time, Level 3 had received valid consents from the holders of substantially all of the outstanding 11.5% Notes (the “Requisite Consents”) to amend the indenture relating to the 11.5% Notes (the “11.5% Note Indenture”) to eliminate substantially all of the covenants and certain events of default and related provisions contained in the 11.5% Note Indenture (the “Amendment”). As of the Consent Time, holders of 11.5% Notes representing approximately 97% of the aggregate principal amount of the outstanding 11.5% Notes had consented to the Amendment.
The 11.5% Tender Offer is scheduled to expire on March 20, 2007, the Expiration Date. Notes tendered in the 11.5% Tender Offer after the Consent Time, but prior to the Expiration Date will not receive a consent payment. Notes tendered on or prior to the Consent Time may not be withdrawn, and consents submitted on or prior to the Consent Time may not be revoked. The settlement date for 11.5% Notes tendered in the 11.5% Tender Offer on or prior to the Consent Time is scheduled to be March 13, 2007, or such other date as Level 3 shall notify holders of the 11.5% Notes.
The complete terms and conditions of the Tender Offers are set forth in separate Offers to Purchase that have been sent to holders of the 10 3/4% Notes and the 11.5% Notes. Holders are urged to read the tender offer documents carefully. Copies of each Offer to Purchase and each related Letter of Transmittal may be obtained from the Information Agent for the Tender Offers, Global Bondholder Services Corporation, at (212) 430-3774 and (866) 389-1500 (toll-free).
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.