[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
Jennifer Daumler Sandra Curlander
720-888-3356 720-888-2501
Level 3 Announces Pricing of Private
Offering of New Senior Notes
BROOMFIELD, Colo., March 10, 2006 - Level 3 Communications, Inc. (Nasdaq:LVLT)
today announced that its subsidiary, Level 3 Financing, Inc., has agreed to sell
$400 million aggregate principal amount of senior notes - $150 million aggregate
principal amount of Floating Rate Senior Notes due 2011 and $250 million
aggregate principal amount of 12.25% Senior Notes due 2013 - 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 Floating Rate Senior Notes due 2011 have an
initial interest rate equal to the six month London Interbank Offered Rate, or
LIBOR, plus 6.375%, which will be reset semi-annually.
The Floating Rate Senior Notes due 2011 were priced at 96.782% of par, and the
12.25% Senior Notes due 2013 were priced at 96.618% of par.
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.
The debt represented by the senior notes will constitute purchase money
indebtedness under the indentures of Level 3 and the net proceeds from the
offering will be used to finance the cash purchase price of Level 3's
acquisition of WilTel Communications, which was consummated on December 23,
2005. The offering is expected to be completed on March 14, 2006, 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 23,000-mile
broadband fiber optic network including Internet Protocol (IP) services,
broadband transport and infrastructure services, colocation services, and
patented softswitch managed modem and voice services. Level 3 is an industry
leader in IP and VoIP services, which it provides to cable operators, ISPs,
carriers and others. Level 3's E-911 service offering includes both fixed
location and nomadic VoIP E-911 capabilities, supporting an FCC-compliant E-911
solution for interconnected VoIP providers. Its Web address is www.Level3.com.
The company offers information services through its subsidiary, Software
Spectrum, and fiber-optic and satellite video delivery solutions through its
subsidiary, Vyvx. For additional information, visit their respective Web sites
at www.softwarespectrum.com and www.vyvx.com.
The Level 3 logo is a registered service mark of Level 3 Communications, Inc. in
the United States and/or other countries. Level 3 services are provided by a
wholly owned subsidiary of Level 3 Communications, Inc.
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: increasing the volume of traffic on Level 3's
network; developing new products and services that meet customer demands and
generate acceptable margins; successfully completing commercial testing of new
technology and information systems to support new products and services,
including voice transmission services; stabilizing or reducing the rate of price
compression on certain of our communications services; integrating strategic
acquisitions; attracting and retaining qualified management and other personnel;
ability to meet all of the terms and conditions of our debt obligations;
overcoming Software Spectrum's reliance on financial incentives, volume
discounts and marketing funds from software publishers; and reducing downward
pressure of Software Spectrum's margins as a result of the use of volume
licensing and maintenance agreements. 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.
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