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 Valerie Finberg
720-888-2292 720-888-2501
Level 3 Announces Proposed Private
Offering of 9.25% Senior Notes due 2014
BROOMFIELD, Colo., December 13, 2006 -- Level 3 Communications, Inc. (Nasdaq:
LVLT) today announced that its subsidiary, Level 3 Financing, Inc., plans to
offer $500 million aggregate principal amount of 9.25% Senior Notes due 2014 in
a proposed 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. This offering represents an
additional offering of the 9.25% Senior Notes due 2014 that were issued on
October 30, 2006. The senior notes are being offered as additional debt
securities under the same indenture as the 9.25% Senior Notes issued on October
30, 2006, and will be treated under that indenture as a single series of notes
with the outstanding 9.25% Senior Notes.
The debt represented by the new notes, together with cash on hand, will be used
in whole or in part to (i) purchase Level 3 Financing's 10.75% Senior Notes due
2011 tendered in a tender offer, which is being launched by Level 3 Financing
today, (ii) to the extent that less than all of the 10.75% Senior Notes due 2011
are purchased in the tender offer, to effect a satisfaction and discharge under
the Indenture governing the 10.75% Senior Notes due 2011 or otherwise repurchase
in any lawful manner those 10.75% Senior Notes due 2011 that remain outstanding
after the tender offer, and (iii) pay fees and expenses incurred in connection
with the foregoing.
The senior notes will not be 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.
About Level 3 Communications
Level 3 Communications, Inc. (Nasdaq: LVLT), an international communications
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 Communications," "Level 3" and the Level 3 Communications logo are
registered service marks of Level 3 Communications, Inc. in the United States
and/or other countries. Any other product and company names herein may be
trademarks of their respective owners. Level 3 services are provided by wholly
owned subsidiaries 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;
and the ability to meet all of the terms and conditions of our debt obligations.
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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