BROOMFIELD, CO, April 20, 2001 - The following statements were released today by James Q. Crowe, CEO of Level 3 Communications, Inc. (Nasdaq:LVLT): "We have received a number of inquiries over the past two days concerning a recent analyst comment regarding Level 3's updated revenue guidance and senior secured loan covenants," said James Q. Crowe, CEO of Level 3. "Based on our revised guidance provided in our first quarter earnings release on April 18, 2001, we are not in violation of any of the loan covenants under our existing $1.775 Billion Senior Secured Credit Facility. Additionally, if we continue to execute on our business plan and achieve our revised guidance, we will satisfy our covenants by a comfortable margin. It is important to note that the analyst making this statement did not take into consideration specific language that determines how financial covenants are calculated."
James B. Lee, Vice Chairman of JPMorgan, the lead arranger on Level 3's $1.775 Billion Senior Secured Credit Facility issued the following statement: "Based on information provided to JPMorgan by Level 3, the revised projected revenues set forth in Level 3's first quarter earnings release, if attained, would not result in a breach of the minimum revenue covenant in Level 3's bank facility. This credit agreement was signed in 1999, and revenues associated with dark fiber sales for purposes of the credit facility covenants are calculated based on generally accepted accounting principles in effect in early 1999, and thus differ from those reported by Level 3 in its publicly released financial statements."
About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.
"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.
Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
