Level 3 begins change-of-control offer for Broadwing's 3.125% convertibles

New York, Jan. 12 - Level 3 Communications, Inc. announced its Broadwing Corp. subsidiary has begun a change-of-control tender offer for its 3.125% convertible senior debentures due 2026.

The offer is required following Level 3's acquisition of Broadwing, completed on Jan. 3.

Broadwing is offering par plus $7.29 per $1,000 principal amount of accrued interest up to but excluding Feb. 9 for the convertibles.

If all the securities are tendered, Broadwing will pay $181.3125 million.

The tender ends at 11:59 p.m. ET on Feb. 9.

Because of the acquisition, the debentures are now convertibles into $492.77 in cash and 80.789 shares of Level 3 common stock, calculated as $8.18 in cash per share of Broadwing, multiplied by 60.241, and 1.3411 shares of Level 3 common stock, multiplied by 60.241.

Conversion before Feb. 17 will receive a make-whole premium of 14.969 additional shares of Level 3 common stock and $91.31 in cash per $1,000 principal amount.

The paying agent is Bank of New York.

Level 3 is Broomfield, Colo., communications company.

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