Last month, internet backbone provider Level 3 Communications (LVLT) announced a refinancing initiative in which the company would sell $400M of new 15% convertible notes and tender for its 2009 and 2010 debt, but the cash being raised was conditional on some 50% of the debt to be tendered. The credit crisis forced the company and its backers to take action, and they did - but there was a wide range of possible outcomes, with one of the most commonly voice being that they would get nothing and go back to the drawing board. Well, not quite.
They didn't make it to that 50% by the deadline, so they just adjusted the offer. And you can see that the terms of the offer were very fungible, Level 3 and its backers probably intended from the very beginning [Read more →]