By Devika Patel
Knoxville, Tenn., Dec. 31 - Level 3 Communications, Inc. said it sold a $26.2 million tranche of 15% convertible senior notes due 2013. The deal priced Nov. 17 for $400 million and was revised to include an additional investor on Nov. 18. The company took in $373.8 million on Dec. 24.
The notes will mature on Jan. 15, 2013. They will be convertible into common shares at $1.80 per share, which is equivalent to a conversion rate of 555.5556 common shares per $1,000 principal amount of notes.
If, at any time prior to the close of business on Jan. 15, 2013, the company's common stock closes higher than 222.2% of the conversion price then in effect for at least 20 trading days within any 30 consecutive trading day period, the notes will automatically convert into shares, along with interest to, but excluding the conversion date.
Holders may exercise a put option on all or any part of their notes after such an event, at par plus interest to, but excluding, the put date.
Proceeds will be used to repurchase Level 3's 2.875% convertible senior notes due 2010, its 6% convertible subordinated notes due 2010 and its 6% convertible subordinated notes due 2009.
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.
| Issuer: | Level 3 Communications, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2013
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Conversion price: | $1.80
|
| Conversion rate: | 555.5556 common shares per $1,000 in notes
|
| Warrants: | No
|
| Pricing date: | Nov. 17
|
| Revised: | Nov. 18
|
| Settlement date: | Dec. 24 (for $373.8 million), Dec. 31 (for $26.2 million)
|
| Stock symbol: | Nasdaq: LVLT
|
| Stock price: | $0.87 at close Nov. 14
|
| Market capitalization: | $1.08 billion
|
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