Level 3 Provides $278M in Debt Exchange – Zacks Tale of the Tape | Stock Market News & Stocks to Watch from StraightStocks

Level 3 Provides $278M in Debt Exchange – Zacks Tale of the Tape

Source: http://www.zacks.com/stock/news/21328/Level+3+Provides+%24278M+in+Debt+Exchange+-+Zacks+Tale+of+the+Tape
Posted on Monday, June 22nd, 2009 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

Level 3 Communications Inc. (LVLT) said today that it would pay an unidentified institutional investor $78 million in cash and $200 million in new convertible notes in exchange for $282 million in existing notes.

Shares are up more than 16% today.

Under this offer, Level 3 exchanges $142.1 million of existing 6% convertible subordinated notes and $139.8 million in 2.875% convertible notes, due in 2010 for a combination of cash and new 7% senior notes due in 2015.

The new notes would be convertible into common shares at $1.80 each.

The company also indicated that it raised approximately $223 million in cash through debt repurchases during the second quarter.

Level 3 has about $60 million of debt due this year and $181 million due in 2010. It has $505 million in debt remaining due in 2011.

This Zacks #3 Rank (”Hold”) company is trading on volume of 21.8 million shares, compared with the daily average of nearly 18 million.

“LVLT” Free Stock Analysis: Buy? Sell? Hold?
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