By Angela McDaniels
Tacoma, Wash., Sept. 15 - Level 3 Communications Inc. priced $175 million of six-year convertible senior notes after the market close Tuesday with a coupon of 6.5% and an initial conversion premium of 30%, according to a company news release.
The convertibles came at the midpoint of talk, which was for a 6.25% to 6.75% coupon and an initial conversion premium of 22.5% to 27.5%.
There is a $26.25 million greenshoe.
Bank of America Merrill Lynch is the bookrunner of the registered deal, with Citigroup Global Markets Inc. as the lead manager. Co-managers are Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc. and Wells Fargo Securities.
The convertibles will be non-callable for three years and then provisionally callable if the stock exceeds 150% of the conversion price.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures and the potential repurchase or redemption of the company's 5.25% convertible senior notes due 2011 and other existing debt from time to time.
Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services.
| Issuer: | Level 3 Communications Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $26.25 million
|
| Maturity: | Oct. 1, 2016
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Lead manager: | Citigroup Global Markets Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., Wells Fargo Securities
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Conversion premium: | 30%
|
| Conversion price: | $1.235
|
| Conversion ratio: | 809.7166
|
| Call protection: | For three years, then provisionally callable at a 150% price hurdle
|
| Pricing date: | Sept. 14
|
| Settlement date: | Sept. 20
|
| Stock symbol: | Nasdaq: LVLT
|
| Stock price: | $0.95 at close Sept. 14
|
| Market capitalization: | $1.7 billion
|
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