S&P: Level 3 unchanged

Standard & Poor's said that the CCC issue-level rating and 6 recovery rating on Level 3 Escrow Inc.'s 8 1/8% senior notes due 2019 are not affected by the proposed $600 million upsizing of the issue.

Level 3 Escrow is a recently formed direct subsidiary of Level 3 Financing Inc. and an indirect subsidiary of Level 3 Communications Inc., created to finance the proposed $3 billion acquisition of Global Crossing Ltd.

The ratings on parent Level 3 and subsidiaries, including the B- corporate credit rating and the CCC rating on unsecured debt issues, are also unaffected by the proposed notes upsizing and remain on CreditWatch with positive implications, where they were placed April 11 after the proposed Global Crossing acquisition was announced.

The senior secured debt ratings at subsidiary Level 3 Financing are unaffected but remain on CreditWatch with developing implications.

The additional notes will be sold under rule 144A and under the same indenture as the $600 million of notes that closed this past June. Proceeds from the earlier note issuance and this $600 million tack-on to that issue will replace a portion of the aggregate $1.75 billion of committed bridge facilities put into place to refinance Global Crossing debt.

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