Level 3 to Exchange Debt for Equity

Level 3 Communications announced that pursuant to an exchange agreement, Southeastern Asset Management, on behalf of certain investment accounts, and Legg Mason Opportunity Trust have agreed to exchange $490 million aggregate principal amount of Level 3's 10% Convertible Senior Notes due 2011 for a total of approximately 160.1 million shares of Level 3's common stock, equivalent to approximately 326.78 shares per $1,000 note, and the payment of accrued and unpaid interest on the notes to the closing date.



Level 3 said the exchange will reduce its 2007 cash interest expense by approximately $47 million.
http://www.level3.com/