Level 3 subsidiary closes unsuccessful solicitation for 12¼% notes

By Jennifer Chiou

New York, July 16 - Level 3 Communications, Inc. subsidiary Level 3 Financing, Inc. announced the wrap of the consent solicitation for its 12¾% senior notes due 2013 under which it failed to receive the required consents.

The company was seeking consents to amend the indenture to allow Level 3 Communications to incur debt that is permitted based on a multiple of cash flow available for fixed charges on a pro forma basis giving effect to any investment, acquisition, merger or consolidation.

The amendment was to calculate this incurrence test in the same manner as the test is calculated under all of the other existing indentures of Level 3 Financing.

"Since we launched this solicitation, we have engaged in a series of constructive discussions with holders of the 12.25% senior notes," Sunit Patel, chief financial officer, said in a news release.

"However, we did not receive the requisite consents, and as such, we've chosen not to pursue this matter further at this time."

The company was offering a consent fee of $7.50 for each $1,000 principal amount of notes for which consents were received.

The consent solicitation expired at 5 p.m. ET on July 15. It began on July 1.

Banc of America Securities LLC (888 292-0070 or 646 855-3401) and Citigroup Global Markets Inc. (800 558-3745) were the solicitation agents.

Copies of the consent solicitation statement could have been obtained from Global Bondholder Services Corp. (212 430-3774 or 866 389-1500).

Level 3 Communications provides fiber-based communications services and is based in Broomfield, Colo.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.