Level 3 greenshoe exercised, raising convertibles to $345 million

By Caroline Salls

Pittsburgh, Dec. 2 - Level 3 Communications Inc. said the underwriters of its recent offering of 5.25% convertible senior notes due 2011 exercised the $25 million over-allotment option in full, raising the size of the deal to $345 million.

The Broomfield, Colo.-based internet access provider originally priced $320 million of the securities after the close on Nov. 17 to yield 5.25% with a 20% initial conversion premium.

Merrill Lynch & Co. was the bookrunner for the Rule 144A deal.

Level 3 plans to use a portion of the proceeds, along with borrowings under a $730 million senior secured term loan, to fund the tender offers for $1.1 billion of debt. Also, Level 3 used 17.8% of proceeds to enter into bond hedge and stock warrant transactions to limit dilution from the conversion of the notes by boosting the conversion premium to 80.7%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.