"91 Express Lanes" Purchased by Orange County Transportation Authority
Transaction Reduces Level 3's Long-Term Debt by $139 Million
BROOMFIELD, Colo., January 3, 2003 - Level 3 Communications, Inc. (Nasdaq:LVLT) announced today that it has received approximately $46 million in cash from the sale of the "91 Express Lanes" toll road in Orange County, Calif. In addition, the company's long-term debt will be reduced by approximately $139 million.
On Friday, the Orange County Transportation Authority completed its purchase of the toll road from the California Private Transportation Company (CPTC), for $207.5 million in cash and assumed debt. Level 3 received proceeds from the sale because it is a 65 percent owner of CPTC.
"We are pleased to have finalized the sale of this non-core asset, which both lowers debt and generates cash for our core communications and information services businesses," said Sureel Choksi, Level 3's chief financial officer.
The 91 Express Lanes road runs for 10 miles between the Costa Mesa Freeway and the Orange County-Riverside County line. When it debuted in December 1995, it was the first privately financed toll road to open in the United States in more than 50 years. Since then, the road has logged more than 50 million vehicle trips. The Orange County Transportation Authority purchased the road as part of its ongoing effort to better manage traffic congestion in the region.
Level 3's ownership interest in the road dates to 1992. At the time, Level 3 was operating as Kiewit Diversified Group, a subsidiary of Peter Kiewit Sons', Inc., the private construction company headquartered in Omaha, Neb. Kiewit was a principal investor in CPTC, along with partners Granite Construction Inc. and Cofiroute Corporation, a France-based builder and operator of highway systems
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.
