Level 3 greenshoe partially exercised, upping convertibles offer to $335 million

By Jennifer Chiou

New York, June 13 - Level 3 Communications Inc. said that underwriters exercised $35 million of a $45 million greenshoe option, raising its issue of convertible senior notes due 2012 to $335 million.

On June 7, the company priced the convertibles at a coupon of 3.5% and an initial conversion premium of 20%.

Merrill Lynch was the bookrunner.

The convertibles are non-callable for the first four years. There are no puts.

Level 3 plans to use the net proceeds to redeem its 9 1/8% senior notes due 2008 and 10½% senior discount notes due 2008.

Level 3 is a Broomfield, Colo.-based communications and information services company.

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