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 Pricing of Private
Offering of Senior Notes
BROOMFIELD, Colo., February 9, 2007 -- Level 3 Communications, Inc.
(Nasdaq:LVLT) today announced that its subsidiary, Level 3 Financing, Inc., has
agreed to sell $1.0 billion aggregate principal amount of senior notes - $300
million aggregate principal amount of Floating Rate Senior Notes due 2015 and
$700 million aggregate principal amount of 8.75% Senior Notes due 2017 - 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 2015 have
an interest rate equal to the six month London Interbank Offered Rate, or LIBOR,
which will be reset semi-annually, plus 3.75%.
A portion of the debt represented by the notes constitutes purchase money
indebtedness under the existing indentures of Level 3 and the portion of the net
proceeds from this offering that constitutes purchase money indebtedness will be
used solely to fund the cost of construction, installation, acquisition, lease,
development or improvement of any assets to be used in Level 3's communications
business, including the cash purchase price of Level 3's recently completed and
future acquisitions.
Level 3 will also use a portion of the net proceeds to refinance certain
existing indebtedness of Level 3 Financing and pay fees and expenses in
connection therewith.
Following the completion of this offering, Level 3 currently intends to call for
redemption its 12-7/8% Senior Discount Notes due 2010 using cash on hand.
The offering is expected to be completed on February 14, 2007, subject to market
conditions.
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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