Level 3 (LVLT) registered a shelf in an SEC filing today that allows them, basically, to sell indeterminate amounts of anything they want to anyone with a pulse. Ok, it’s not that wide open, but it does position them to offer any of the following:
- Debt Securities
- Preferred stock
- Stock Purchase Contracts/Units
- Subscription Rights
- Depository shares representing preferred stock
- Common Stock
- Guarantees of Debt Securities
That’s quite some list, did they miss anything? Heck, I barely know what some of those are. No details on quantity or rates or anything like that seem to be given.
What does it mean? Just that they want to be ready. Filing a shelf doesn’t mean they are ready to make a move, and registering that list of options implies they probably don’t have any immediate plans. But if they see a window in the credit markets then they’ll surely jump through it. And if no window is available, a porthole will do, or a mouse hole, or maybe a peephole. There is, perhaps, no company in the telecom space that has shown the financial ingenuity LVLT has over the last decade, they have jumped through hoops of fire while doused with gasoline more than once. Their 2010 maturities are of course what has the market worried these days, and they are simply strapping on the old toolbelt again.
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