Exhibit 99.1
[Logo]
1025 Eldorado Boulevard
Broomfield, Colorado 80021
www.Level3.com
NEWS RELEASE
Level 3 contacts:
Media: Josh Howell Investors: Robin Grey
720-888-2517 720-888-2518
Arthur Hodges
720-888-6184
Level 3 Announces Pricing of Offering of
$500 Million of Senior Notes
BROOMFIELD, Colo., Sept. 29, 2003 -- Level 3 Communications, Inc. (Nasdaq:LVLT)
today announced that its subsidiary, Level 3 Financing, Inc., has agreed to sell
$500 million aggregate principal amount of 10.75% Senior Notes due 2011 in a
private offering to "qualified institutional buyers as defined in Rule 144A
under the Securities Act of 1933 and outside the United States under Regulation
S under the Securities Act of 1933.
The senior notes have not been registered under the Securities Act of 1933 or
any state securities laws and, unless so registered, may not be offered or sold
except pursuant to an applicable exemption from the registration requirements of
the Securities Act of 1933 and applicable state securities laws.
The company intends to use the net proceeds of this offering, along with cash on
hand, to repay all outstanding purchase money indebtedness borrowed under the
company's senior secured credit facility. The outstanding purchase money
indebtedness to be repaid equals approximately $1.125 billion. As a result, when
the offering is completed, the senior secured credit facility will be repaid in
full and terminated. The offering is expected to be completed during the first
week of October 2003, subject to customary closing conditions.
About Level 3 Communications
Level 3 (Nasdaq:LVLT) is an international communications and information
services company. The company operates one of the largest Internet backbones in
the world, is one of the largest providers of wholesale dial-up service to ISPs
in North America and is the primary provider of Internet connectivity for
millions of broadband subscribers, through its cable and DSL partners. The
company offers a wide range of communications services over its 22,500-mile
broadband fiber optic network including Internet Protocol (IP) services,
broadband transport, colocation services, managed services, and patented
Softswitch-based managed modem and voice services. Its Web address is
www.Level3.com.
The company offers information services through its subsidiaries, Software
Spectrum and (i)Structure. For additional information, visit their respective
web sites at www.softwarespectrum.com, and www.i-structure.com.
Forward Looking Statement
Some of the statements made by Level 3 in this press release are forward-looking
in nature. Actual results may differ materially from those projected in
forward-looking statements. Level 3 believes that its primary risk factors
include, but are not limited to: changes in the overall economy relating to,
among other things, the September 11 attacks and subsequent events, the
challenges of integration, substantial capital requirements; development of
effective internal processes and systems; the ability to attract and retain high
quality employees; technology; the number and size of competitors in its
markets; law and regulatory policy; and the mix of products and services offered
in the company's target markets. 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 release should be
evaluated in light of these important factors.