Level 3 Communications (NYSE:LVLT, news, filings) said this morning that it plans to sell $300M of senior unsecured notes due 2019 in a private offering to qualified institutional buyers. The money will go to general corporate purposes, most likely debt refinancing - which of course is where most of it usually goes. In conjunction with the sale, Level 3 offered up the following quote:
“The company is confirming the relevant information contained in the Business Outlook section of the First Quarter 2012 earnings release dated May 3, 2012.”
So what did they say then? Sequential CNS revenue growth for the rest of the year, and 2012 EBITDA guidance of 20-25% growth over last year's pro forma $1.216B. In other words, Level 3 probably won't be reducing guidance next week - although I suppose they could still narrow the EBITDA guidance range or something. That's welcome news, as analysts lately have been quite skeptical and the market has the company's stock drifting below $20 again ahead.
This quarter's report could be a turning point for Level 3, as it marks the halfway point in the Global Crossing integration and thus it should start getting easier to see what they'll look like next spring when they come out the other side. And if it doesn't, well then the story doesn't change.
Meanwhile, they continued winning content business in Latin America with a Vyvx win at ESPN Brazil. Level 3 will be providing broadcast solutions and managed services to optimize transmissions and provide integrated services for TV stations in Brazil to carry ESPN content. The company has been moving quickly to take advantage of the Global Crossing assets in South America when it comes to the content vertical.
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