Longleaf Partners Funds, Berkshire Hathaway, and Legg Mason converted all of their outstanding 9% junior convertible subordinated notes due 2012 into shares of Level 3 common stock. Level 3 raised $500 million from the three institutional investors last year, in part to pursue acquisition opportunities in the communications industry. Level 3 said the conversion reduces its long-term debt by $457 million and generates cash interest savings for the company of approximately $41 million per year. In connection with the conversion, Level 3 is issuing approximately 161 million shares of Level 3 common stock in aggregate to the three investors. Of the original $500 million, $43 million had previously been converted.
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- In November 2002, Level 3 Communications agreed to acquire substantially all of Genuity’s assets and operations for $242 million.