Level 3 Communications
has priced an offering of $325 million of 2.875% convertible senior notes due 2010, which represents a $75 million increase from the originally planned size of the sale.
The company granted the underwriters an option to purchase up to $48.75 million more of the notes to cover overallotments.
Level 3 plans to use the proceeds for working capital, capital spending and other general corporate purposes, including new product development, debt repurchases and acquisitions. The notes are convertible into the company's common stock at a price of $7.18 a share.
Citigroup, Credit Suisse First Boston, J.P. Morgan, Merrill Lynch and Morgan Stanley are underwriting the offering. Level 3 expects that the offering will be completed on July 8.
Shares of Level 3, a communications and information services company, were recently down 11 cents to $5.92.