Level 3 has consents for 73% of 11% notes, 96% of floating notes

By Michelle Anderson

Rochester, N.H., March 2 - Level 3 Communications, Inc. announced it has received the needed consents for its tender offer and consent solicitation for its 11% senior notes due 2008 and subsidiary Level 3 Financing, Inc.'s floating-rate notes due 2011.

About 73% of the 11% notes have been accepted and 96% of the floating-rate notes.

The company entered into supplemental indentures for both series of notes.

To make changes to the notes, the company had to have consents from holders of a majority of the securities.

The consent deadline was 12:01 a.m. ET on March 1, and the tender deadline is 12:01 a.m. ET on March 15.

As announced on Feb. 15, Level 3 is tendering for any and all of its $78 million of 11% senior notes due 2008 for a price equal to $1,054.28 per $1,000 principal amount, which also includes a $30.00 consent payment. Level 3 Financing is tendering for any and all of its $150 million of floating-rate notes due 2011 for a price equal to $1,080.00 per $1,000 principal amount, including a $30.00 consent payment.

Level 3 Financing said it is soliciting consents to amend the note indentures to eliminate substantially all of the covenants, certain repurchase rights, certain discharge rights and certain events of default and related provisions.

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

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

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