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Stock Rises As Level 3 Shuffles Debt Bond

Posted on: Wednesday, 14 December 2005, 21:00 CST

By Virgil Larson, Omaha World-Herald, Neb.

Dec. 13--Level 3 Communications, trying to extend the time it has to pay down debt, offered Monday to exchange loans due to be paid off in 2008 for new ones carrying a higher rate of interest but that would not come due until 2010.

Of $1.23 billion in bonds that mature in 2008, $954.2 million carry an interest rate of 9.125 percent. The rest carry 10.5 and 11 percent rates. Level 3's offer would replace all three sets with new bonds paying 11.5 percent. The Broomfield, Colo., fiber-optic network company also will pay up to $70 cash per $1,000 exchanged.

The offer expires Jan. 10; an extra $25 in cash will be paid on exchanges made by Dec. 22.

While individuals hold some of the $1,000 denomination bonds, the exchange is open only to "qualified institutional buyers," spokeswoman Robin Grey said.

The announcement was made Monday morning. Level 3's stock rose during the day, closing at $3.20, 21 cents higher than Friday's close.

Volume was 6.3 million shares, almost 50 percent higher than the 52-week average daily volume. The stock's 52-week high price is $3.90, set Nov. 18.

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LVLT,

Source: Omaha World-Herald

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