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 Completes Acquisition of Broadwing
BROOMFIELD, Colo., January 3, 2007 -- Level 3 Communications, Inc. (Nasdaq:
LVLT) today announced that it has completed its acquisition of Broadwing
Corporation (Nasdaq: BWNG), a publicly held provider of optical network
communication services.
Pursuant to the merger agreement dated October 16, 2006, Level 3 will pay
consideration to Broadwing shareholders of $8.18 of cash plus 1.3411 shares of
Level 3 common stock for each share of Broadwing common stock outstanding at
closing. In total, Level 3 will pay approximately $744 million of cash and issue
approximately 122 million shares of common stock.
"The acquisition of Broadwing benefits Level 3 in two distinct areas," said
Kevin O'Hara, president and chief operating officer of Level 3. "The integration
of the Broadwing backbone presents significant synergy opportunities, and the
expansion of the customer base provides strategic growth opportunities for us
moving forward."
Broadwing, based in Austin, Texas, delivers data, voice and media solutions to
enterprises and service providers over its 19,000 mile intercity fiber network.
Approximately half of Broadwing's revenue comes from the wholesale market, with
business customers comprising the remaining revenue.
More information concerning this transaction, together with consolidated 2007
guidance for Level 3, will be provided in the company's fourth quarter 2006
earnings release and associated earnings conference call, which are tentatively
scheduled for February of 2007.
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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