LEVEL 3 COMMUNICATIONS PRICES DEBT SECURITY OFFERINGS
U.S. Debt Securities Generate Approximately $1.4 Billion of Gross Proceeds And Euro Debt Offerings Generate $800 Million of Gross Proceeds Net Proceeds to be Used to Implement Business Plan
BROOMFIELD, COLORADO, February 24, 2000 – Level 3 Communications, Inc. (Nasdaq: LVLT) today announced that it had priced an offering of three tranches of U.S. dollar denominated debt securities and two tranches of Euro denominated debt securities. U.S. Debt Securities The company has agreed to sell $800 million aggregate principal amount of 11% Senior Notes due 2008, $650 million aggregate principal amount at maturity of 12⅞% Senior Discount Notes due 2010 (resulting in gross proceeds to the company of approximately $359.829 million) and $250 million aggregate principal amount of 11% Senior Notes due 2010 (collectively, the Notes). The 11% Senior Notes due 2008 will mature on March 15, 2008, the 12⅞% Senior Discount Notes due 2010 will mature on March 15, 2010 and the 11% Senior Notes due 2010 will mature on March 15, 2010. The Notes are senior, unsecured obligations of Level 3, ranking pari passu with all existing and future senior unsecured indebtedness of Level 3.
Cash interest on the 11% Senior Notes due 2008 and the 11% Senior Notes due 2010 is payable semiannually on March 15 and September 15 of each year, commencing on September 15, 2000. Cash interest will not accrue on the 12⅞% Senior Discount Notes due 2010 prior to March 15, 2005. After March 15, 2005, cash interest will accrue on the 12⅞% Senior Discount Notes due 2010 and will be payable semiannually on March 15 and September 15 of each year, commencing on September 15, 2005.
Euro Debt Securities The company also announced that it had priced an offering of two tranches of Euro denominated debt securities. The company agreed to sell $500 million aggregate principal amount of 10% Senior Notes due 2008 and $300 million aggregate principal amount of 11% Senior Notes due 2010 (collectively, the Euro Notes). The 10% Senior Notes due 2008 will mature on March 15, 2008 and the 11% Senior Notes due 2010 will mature on March 15, 2010. The Euro Notes are senior, unsecured obligations of Level 3, ranking pari passu with all existing and future senior unsecured indebtedness of Level 3. Cash interest on the Euro Notes is payable semiannually on March 15 and September 15 of each year, commencing on September 15, 2000. Level 3 currently intends to use the net proceeds of these offerings for working capital, capital expenditures, acquisitions and other general corporate purposes in connection with the implementation of its business plan. Although the company evaluates potential acquisitions from time to time, the company has no agreement or understanding with any person to effect any material acquisition. The Notes and the Euro Notes offered by Level 3 were sold in a private offering to "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933 and the Euro Notes were also sold outside the United States under Regulation S under the Securities Act of 1933. The Notes and the Euro 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.
(* Softswitches are advanced software based switching systems, which enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to 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," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and 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 press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
