From Earlier: Level 3 Announces Pricing of Private Offering of Senior Notes

Level 3 Communications, Inc. LVLT yesterday announced that Level 3 Financing, Inc., its wholly owned subsidiary, has agreed to sell $900 million aggregate principal amount of its 8.625% Senior Notes due 2020 in a private offering to "qualified institutional buyers," as defined in Rule 144A under the Securities Act of 1933, as amended, and non-U.S. persons outside the United States under Regulation S under the Securities Act of 1933. The new 8.625% Senior Notes were priced to investors at 100% of their principal amount and will mature on July 15, 2020. Level 3 Financing, Inc.'s obligations under the 8.625% Senior Notes will be fully and unconditionally guaranteed on an unsecured basis by Level 3 Communications, Inc. A portion of the net proceeds from the offering will be used to redeem all of Level 3 Financing's outstanding 9.25% Senior Notes due 2014 in aggregate principal amount of $807 million. The remaining proceeds will constitute purchase money indebtedness under the existing indentures of Level 3 and will be used solely to fund the cost of construction, installation, acquisition, lease, development or improvement of any Telecommunications/IS Assets (as defined in the existing indentures of Level 3), including the cash purchase price of any past, pending or future acquisitions. The offering is expected to be completed on Jan. 13, 2012, subject to the satisfaction of customary closing conditions.