Level 3 holders agree to convert $127.96 million of 15% convertibles

By Angela McDaniels

Tacoma, Wash., July 7 - Level 3 Communications, Inc. said Fairfax Financial Holdings Ltd. and some other investors agreed to convert $127,962,000 principal amount of Level 3's 15% convertible senior notes due 2013.

Level 3 will issue about 71 million shares of common stock in exchange for the convertibles, representing the 555.5556 shares per $1,000 principal amount into which the notes are currently convertible.

The company will also pay $28,791,450 in cash, equivalent to $225 per convertible, representing interest that would be due from conversion through the maturity date.

Following this conversion, $272,038,000 principal amount of the convertibles will remain outstanding.

The convertibles are not callable prior to maturity, according to a company news release.

Level 3 Communications is a Broomfield, Colo.-based provider of fiber-based communications services.

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