Level 3 Communications, Inc. (NASDAQ: LVLT) today announced that the
consent solicitation of its wholly owned subsidiary, Level 3 Financing,
Inc., with respect to an amendment to the indenture governing Level 3
Financing’s outstanding 12.25% Senior Notes due 2013 (the “12.25% Senior
Notes”), expired at 5:00 p.m. New York City time, on July 15, 2009,
without Level 3’s Financing’s receiving the requisite consents for the
amendment, and has not been extended.
Level 3 Financing was seeking consents to amend the indenture relating
to the 12.25% Senior Notes to provide that Level 3 may incur debt that
is permitted based upon a multiple of cash flow available for fixed
charges on a “pro forma” basis giving effect to any acquisition,
investment, merger or consolidation. The amendment would 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,” said
Sunit Patel, Level 3’s CFO. “However, we did not receive the requisite
consents, and as such, we’ve chosen not to pursue this matter further at
this time.”
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international
provider of fiber-based communications services. Level 3 services are
provided by wholly owned subsidiaries of Level 3 Communications, Inc.
Enterprise, content, wholesale and government customers rely on Level 3
to deliver services with an industry-leading combination of scalability
and value over an end-to-end fiber network. Level 3 offers a portfolio
of metro and long-haul services, including transport, data, Internet,
content delivery and voice. For more information, visit www.Level3.com.
Forward-Looking Statement
Some of the statements made in this press release are forward looking
in nature. These statements are based on management’s current
expectations or beliefs. These forward looking statements are not a
guarantee of performance and are subject to a number of uncertainties
and other factors, many of which are outside Level 3’s control, which
could cause actual events to differ materially from those expressed or
implied by the statements. The most important factors that could prevent
Level 3 from achieving its stated goals include, but are not limited to,
the current uncertainty in the global financial markets and the global
economy; disruptions in the financial markets that could affect Level
3’s ability to obtain additional financing; as well as the company’s
ability to: successfully integrate acquisitions; increase the volume of
traffic on the network; defend intellectual property and proprietary
rights; develop effective business support systems; manage system and
network failures or disruptions; develop new services that meet customer
demands and generate acceptable margins; attract and retain qualified
management and other personnel; and meet all of the terms and conditions
of debt obligations. Additional information concerning these and other
important factors can be found within Level 3’s filings with the
Securities and Exchange Commission. Statements in this press release
should be evaluated in light of these important factors. Level 3 is
under no obligation to, and expressly disclaims any such obligation to,
update or alter its forward-looking statements, whether as a result of
new information, future events or otherwise.
Level 3 Communications, Inc.
Media:
Debra Havins, 720-888-7466
or
Investors:
Valerie
Finberg, 720-888-2501
