Level 3 to Place Notes
Part of the $200 million offering will be used to retire debt.
Level 3
(LVLT)
plans to sell a $200 million convertible note in a rule 144a placement. It will use the proceeds, along with a $450 million term loan, to buy back debt that is coming due in four years.
The offering will consist of senior notes due 2011 that are convertible at a price that has yet to be determined. Some of the money raised will be used in a bond hedge and warrant transactions that are designed to limit dilution from the notes' conversion.
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The company said its Level 3 Financing Inc. unit is seeking a $450 million senior secured term loan that will help fund the buybacks, which are covered under existing tender offers.
The stock was recently down a penny to $3.22 on Instinet.
