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Level 3 plans $640m debt issue
06 January 2010
US-based Level 3 Communications is to raise $640 million in order to buy back existing high-yield debt
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Level 3 Communications is planning to issue $640 million in new notes. The proceeds will be used to finance the proposed buyback of $550 million of high-yield debt expiring in 2013.
The new notes will fall due in 2018 and will be offered at a fixed interest rate to qualified institutional buyers. Neither the new debt issue nor the repurchase will go through unless the company raises the complete $640 million from the new debt sale and secures the minimum required amount of tenders.
The tenders for 2013 notes, which are made before January 18 2010, will obtain a premium of $80 per $1,000 of principal, while those offered after that but before February 2 will get $50 above face value.
The notes that remain untendered will be redeemed on March 15 2010 at the redemption price of $1,061.25. GTB