Level 3 Files Shelf, Includes Kitchen Sink

November 4th, 2008 by · 5 Comments

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
  • Warrants
  • 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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Categories: Financials · Internet Backbones

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5 Comments So Far


  • rick says:

    I dont believe this a random filing, nor do I believe that TWtelecom recent 8K entering into a new employment contract with Jon Blount with substantial verbage about his contract buyout in the event of merger or sale is random. Seems as though the loud rumblings of a TWtelecom/Level 3 merger is close and getting closer by the SEC filings.

  • Rob Powell says:

    Hmm, I think such a deal would require outside financing of some sort, which at this stage is probably not there. I haven’t heard any loud rumblings lately on the subject. The assets are always a match, it’s the price that keeps the deal from happening.

  • p. Merch says:

    I agree with Rick…prior to BWNG ‘s being acquired, mgt. signed new deals .Don’t Laressa and Jim have old times in common?

  • fanfare says:

    Well, I’d like to agree as well. But what about Rob’s point? As with most things LVLT these days .. the question remains: What about the $$$??

  • Rob Powell says:

    I think it more likely that TW Telecom buys someone than that anyone else buys it. Put simply, they don’t need to do anything so why sell out when valuations are rock bottom?

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