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 Repays Senior Secured Credit Facility In Full
BROOMFIELD, Colo., Oct. 1, 2003 -- Level 3 Communications, Inc. (Nasdaq:LVLT)
announced today that it has repaid in full the $1.125 billion of purchase money
debt obligations outstanding under its senior secured credit facility. As a
result, the senior secured credit facility has been terminated.
Level 3 repaid the senior secured credit facility with proceeds from the
recently completed private offering of Senior Notes by its subsidiary, along
with restricted cash of $400 million and approximately $243 million of
unrestricted cash on hand.
In connection with the repayment of the senior secured credit facility, Level 3
has decreased consolidated long-term debt by $625 million and reduced its
consolidated annual interest expense. Additionally, as a result of the
termination, covenants contained in the senior secured credit facility have been
eliminated, and the first significant maturities on the company's outstanding
long-term debt now begin in 2008.
Pro forma for these transactions and the issuance of approximately $374 million
of Senior Convertible Notes in July 2003, Level 3 had approximately $1.2 billion
in cash on hand, including $150 million of restricted cash, at the end of the
second quarter 2003.
Reconciliation to Cash Balance June 30,
($ in millions) 2003
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Cash, Cash Equivalents and Restricted Cash (1) $1,458
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Net proceeds from 2.875% Convertible Senior Notes due 2010 (2) $362
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Net proceeds from 10.75% Senior Notes due 2011 (3) $487
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Less payment in full of senior secured credit facility (4) ($1,125)
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Less prepayment fee on senior secured credit facility ($4)
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Pro Forma Cash, Cash Equivalents and Restricted Cash (1) $1,178
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(1) Includes restricted cash of $543 million as of June 30, 2003 and
restricted cash of $150 million pro forma.
(2) $373.5 million aggregate principal amount of 2.875% Convertible Senior
Notes issued July 2003.
(3) $500 million aggregate principal amount of 10.75% Senior Notes issued
October 2003.
(4) Represents purchase money indebtedness.
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. This press
release is not an offer of the senior notes for sale in the United States.
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, Genuity 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, (i)Structure
and Software Spectrum. 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.