The debt markets continue to be favorable, and so Level 3 Communications (NYSE:LVLT, news, filings) is looking to add to its cash supply in advance of its purchase of glbc. They announced today a proposed private offering of another $300M in 8.125% senior notes due 2019, adding to the $600M they raised a month ago. These would also go into escrow, waiting for the time when they would be used to refinance Global Crossing's debt. If, like last month, they raise $100M more than originally offered, they'll have raised $1B toward the purchase - much of what they need.
To help that debt sale along, Level 3 also reaffirmed the guidance it has offered for 2011. That guidance was never heavy on the numbers, but features strengthening sequential Core Network Services revenue growth in Q2, low double digit Adjusted EBITDA growth for the full year, and roughly breakeven free cash flow over the last three quarters. The company has been perking up lately, showing signs of sustained growth after several rather difficult years. The scale and synergies expected from the Global Crossing deal have helped energize investors, as their stock price has surged.
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