Level 3 Swings the Ax
Level 3 Communications posted a wider fourth-quarter loss, set plans to cut 1,000 jobs and said it would raise $500 million in its latest financing transaction. The Broomfield, Colo., telco lost $237 million, or 20 cents a share, for the quarter ended Dec. 31, compared to the year-ago continuing operations loss of $226 million, or 32 cents a share. Revenue rose to $846 million from $418 million a year earlier. Analysts were looking for a 14-cent loss on revenue of $831 million.
The company said it will sell $500 million of senior notes in two tranches — one tranche that will mature in 2015 and will bear interest at a floating rate and a second tranche that will mature in 2017 and will bear interest at a fixed rate — in a proposed private offering to qualified institutional buyers” as defined in Rule 144A. Level 3 intends to call for redemption its 12-7/8% senior discount notes due 2010 using cash on hand.
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