[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
Chris Hardman Sandra Curlander
720-888-2292 720-888-2501
Level 3 Communications Issues Notice of Redemption for
9 1/8% Senior Notes due 2008 and
10 1/2% Senior Discount Notes due 2008
Company Closes Offering of 125 Million Shares of its Common Stock
and $335 Million Aggregate Principal Amount of
its Convertible Senior Notes due 2012
Underwriters of Convertible Senior Notes due 2012
Exercise Portion of Overallotment Option
BROOMFIELD, Colo., June 13, 2006 -- Level 3 Communications, Inc. (Nasdaq: LVLT)
today announced that it has called for redemption all of its outstanding 9 1/8%
Senior Notes due 2008 and 10 1/2% Senior Discount Notes due 2008. The redemption
date for each of these notes will be July 13, 2006.
The 9 1/8% Senior Notes due 2008 will be redeemed at a redemption price equal to
100% of the principal amount of those notes plus accrued and unpaid interest to
but not including the redemption date. The aggregate principal amount of 9 1/8%
Senior Notes due 2008 to be redeemed is $398,407,000. The 10 1/2% Senior
Discount Notes due 2008 will be redeemed at a redemption price equal to 101.75%
of the principal amount at maturity of those notes plus accrued and unpaid
interest to but not including the redemption date. The aggregate principal
amount at maturity of 10 1/2% Senior Discount Notes due 2008 to be redeemed is
$62,091,000.
Additional information regarding the redemption of these notes is available from
The Bank of New York, the trustee with respect to these issues of notes.
The company also announced that it had closed the underwritten offering of 125
million shares of its common stock, and that it had closed the underwritten
offering of $300 million aggregate principal amount of its 3.5% Convertible
Senior Notes due 2012. The underwriters also purchased an additional $35 million
aggregate principal amount of Convertible Senior Notes due 2012 pursuant to
their option to purchase up to an additional $45 million aggregate principal
amount of Convertible Senior Notes due 2012 to cover overallotments. In
connection with the closings, the company received net proceeds of $869,775,000,
before offering expenses. The company is using a portion of the net proceeds
from these offerings to fund the redemption of the notes described above.
A registration statement relating to the common stock and the Convertible Senior
Notes has been declared effective by the Securities and Exchange Commission.
Offers and sales of the common stock and the Convertible Senior Notes may be
made only by the related prospectus and prospectus supplement, which may be
obtained from Merrill Lynch & Co., Prospectus Department, 4 World Financial
Center, New York, NY 10080, telephone: 212-449-1000.
About Level 3 Communications
Level 3 (Nasdaq: LVLT), an international communications and information services
company, operates one of the largest Internet backbones in the world. Through
its customers, Level 3 is the primary provider of Internet connectivity for
millions of broadband subscribers. The company provides a comprehensive suite of
services over its broadband fiber optic network including Internet Protocol (IP)
services, broadband transport and infrastructure services, colocation services,
voice services and voice over IP services. These services provide building
blocks that enable Level 3's customers to meet their growing demands for
advanced communications solutions. The company's Web address is www.Level3.com.
Level 3 offers information services through its subsidiary, Software Spectrum,
and fiber-optic and satellite video delivery and advertising distribution
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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