Level 3 solicits tenders, consents for 10¾% notes due 2011

By Laura Lutz

Washington, Dec. 13 - Level 3 Communications, Inc. announced that its subsidiary, Level 3 Financing, Inc., has launched a tender offer and consent solicitation for all of its $500 million outstanding principal amount of 10¾% senior notes due 2011.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the covenants, some repurchase rights and some events of default.

For notes tendered before the consent deadline of 5 p.m. ET on Dec. 27, the company will pay $1,092.21 per $1,000 principal amount of notes.

Notes tendered after the consent deadline will receive the same amount, less a $30 consent payment.

The company will also pay accrued interest for the notes.

The offer expires at 5 p.m. ET on Jan. 11.

Funding for the offer will come from a planned offering of new notes and cash on hand.

Settlement of the offer depends on conditions including completion of the debt offering.

Merrill Lynch & Co. (888 654-8637 or 212 449-4914) is the dealer manager. Global Bondholder Services Corp. (866 389-1500 or 212 430-3774) is the information agent.

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

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