Level 3 greenshoe exercised, lifts convertibles by $26.25 million

By Melissa Kory

Cleveland, Oct. 28 - Level 3 Communications, Inc. added $26.25 million to its completed $175 million offering of 6.5% convertible senior notes due 2016 through the underwriters' exercise of their over-allotment option, the company said in its quarterly earnings release.

As previously reported, the notes priced to yield 6.5% with an initial conversion premium of 30%.

Bank of America Merrill Lynch was the bookrunner, with Citigroup Global Markets Inc. as the lead manager. Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc. and Wells Fargo Securities were the co-managers.

The convertibles will be non-callable for three years and then provisionally callable if the stock exceeds 150% of the conversion price.

As of Sept. 30, the company had cash and cash equivalents of approximately $518 million, or $544 million pro forma for the exercise of the underwriters' over-allotment option.

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

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