Level 3 issues 36.7 million shares for $115 million 10% notes

By Jennifer Chiou

New York, Jan. 23 - Level 3 Communications, Inc. announced it issued 36.7 million shares in exchange for $115 million of its 10% convertible senior notes due 2011.

The exchange rate was 318.9 shares per $1,000 note.

The notes are currently convertible into shares of Level 3 stock at a rate of 277.77 shares per $1,000 note.

The Broomfield, Colo., communications and information services company said that as a result of the exchange, it reduced its 2007 cash interest expense by about $11 million.

The notes are callable by the company on May 1, 2009.

On Jan. 11, the company said that Southeastern Asset Management and Legg Mason Opportunity Trust had agreed to exchange $490 million of the notes.

"This transaction, along with the previously announced exchange last week, is positive for our company as it helps us continue to reduce debt and interest expense," chief financial officer Sunit S. Patel said in a news release.

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