During the quarter, Level 3 Communications, Inc. issued $605 million aggregate principal amount of its 11.875% Senior Notes due 2019 in two separate transactions, of which $305 million was for cash, and approximately $300 million was in exchange for its 9% Convertible Senior Discount Notes due 2013. The company also redeemed in full its 5.25% Convertible Senior Notes due 2011.
Also during the quarter, Level 3 Financing, Inc. issued $500 million aggregate principal amount of its 9.375% Senior Notes due 2019. On April 4, 2011, the company completed the partial redemption of $443 million aggregate principal amount of its outstanding 9.25% Senior Notes due 2014. In the second quarter 2011, the company expects to recognize a $23 million loss on the extinguishment of debt related to the redemption of these notes.
Business Outlook“We expect the sequential growth in Core Network Services Revenue to strengthen in the second quarter,” said Patel. “For the full year 2011, we generally expect stronger sequential revenue growth compared to 2010. Given our high incremental margins, we expect low double digit percentage growth in Consolidated Adjusted EBITDA in 2011.” “In 2011, the company expects GAAP interest expense of approximately $625 million and net cash interest expense of approximately $555 million. We expect capital expenditures to be approximately 12 percent of Communications revenue. Free Cash Flow is expected to be roughly breakeven for the remainder of 2011 in aggregate.” “With respect to the Global Crossing acquisition, we expect to incur some integration planning- and transaction-related costs between signing and closing, and will separately disclose those in our quarterly results,” added Patel. Conference Call and Web Site Information Level 3 will hold a conference call to discuss the company’s first quarter 2011 results at 10 a.m. ET today. To join the call, please dial 1 866-791-6248 (U.S. Domestic) or 1 913-312-1388 (International), conference code 9827710. A live broadcast of the call can also be heard on Level 3’s website at http://lvlt.client.shareholder.com. During the call, the company will review an earnings presentation that summarizes the financial results of the quarter. This presentation may be accessed at http://lvlt.client.shareholder.com/results.cfm. The call will be archived and available on Level 3's Investor Relations website or can be accessed as an audio replay starting at 1 p.m. ET on May 3 until 1 p.m. ET on May 13. The replay can be accessed by dialing 1 888- 203-1112 (U.S. Domestic) or 1 719-457-0820 (International), conference code 9827710.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV