Level 3 calls $1.35 billion of Global Crossing notes following merger

By Tali David

Minneapolis, Oct. 4 - Level 3 Communications, Inc. announced that it will redeem $1.35 billion of Global Crossing Ltd.'s outstanding consolidated debt, according to a company news release.

About $430 million of Global Crossing (UK) Finance plc's senior secured notes due 2014 will be redeemed on Nov. 3.

Level 3 will redeem Global Crossing Finance's £152.43 million of 11¾% notes due Dec. 15, 2014 and $193.66 million of 10.75% notes due Dec. 15, 2014, both at par plus accrued interest.

All $750 million of Global Crossing Ltd.'s outstanding 12% senior notes due 2015 and all of the outstanding $150 million of 9% senior notes due 2019 will be redeemed in early November.

Of the outstanding principal of each of the Global Crossing senior notes, 35% will be redeemed on Nov. 3, as a result of a qualified equity offering that meets the requirements of the terms of the bond, which allows exercise of the equity clawback option. The remaining 65% of the outstanding principal of each issue of the Global Crossing senior notes will be redeemed on Nov. 4 at make-whole prices calculated using a rate of Treasuries plus 50 basis points.

Level 3 is a Broomfield, Colo.-based provider of fiber-based communications services. Global Crossing is a provider of telecommunications services. The Bank of New York Mellon was the trustee.

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