Level 3 to repurchase up to $1.8 billion of debt

Level 3 Communications is attempting to buy back up to $1.8 billion of debt through a “modified Dutch auction.”

Under the proposed plan, Level 3 Finance, a wholly owned subsidiary of Level 3 Communications, will hold a reverse auction for the each of the following series of notes: 9 1/8% senior notes due 2008; 10 1/2 % senior notes due 2008; 10 3/4 % senior note due 2008; 11 ¼ senior notes due 2010; 11 senior notes due 2008; 11 ¼% senior Euro notes due 2010; 12% senior discounted notes due 2010; 6% convertible subordinated notes due 2009 and 6% convertible subordinated notes due 2010.

Level 3 will buy back up to a given amount of each series of notes from the company or companies willing to accept the least amount of money for the notes. The auction, which is being financed by cash given by Level 3 Communications to Level 3 Finance, is scheduled to close on October 5.

--Toby Weber, staff writer