Level 3 gets consents, tenders from holders of 99.34% of 10¾% notes

By Angela McDaniels

Seattle, Dec. 28 - Level 3 Communications, Inc. said it received tenders and consents for $496.716 million, or 99.34%, of Level 3 Financing, Inc.'s 10¾% senior notes due 2011 during a consent solicitation that ended on Dec. 27.

Accordingly, Level 3 Financing amended the indenture governing the notes to eliminate substantially all of the covenants, some repurchase rights and some events of default, according to a company news release.

The company began a tender offer and consent solicitation for the notes on Dec. 13. The tender offer will expire at 5 p.m. ET on Jan. 11.

Noteholders who tender and consent will receive $1,092.21 per $1,000 principal amount of notes, which includes a $30 consent payment for notes tendered before the consent deadline.

The company will also pay accrued interest.

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

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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