Level 3 Receives Approximately $17 Million For Former Genuity Asset
BROOMFIELD, Colo., December 31, 2003 – Level 3 Communications, Inc. (Nasdaq:LVLT) has completed the previously announced sale of the Midwest Fiber Optic Network (MFON) to CenturyTel (NYSE:CTL). MFON is a regional communications system that Level 3 acquired through its transaction with Genuity, Inc. earlier this year.
CenturyTel purchased the stand-alone system, which serves as a regional backbone for a number of carriers, including CenturyTel itself, in Arkansas, Missouri and Illinois. Level 3 expects to receive approximately $17 million from CenturyTel, including cash consideration of approximately $16 million for the business and $1 million in accounts receivable. The purchase price is subject to post-closing adjustments; however, those adjustments are not expected to be material.
“We are pleased to have finalized the sale of this non-core asset,” said Sunit Patel, Level 3’s chief financial officer. “The geography and architecture of MFON did not offer us a cost-effective way to integrate its operations into our own. As such, we believe it made business sense to generate cash through this transaction with CenturyTel.”
The MFON purchase is highly complementary to both CenturyTel’s existing ILEC operations and its fiber transport subsidiary, Lightcore. It provides transport cost efficiencies and increased fiber transport capacity in Missouri and Arkansas expanding the network by 1,400 route miles and more than 100 additional points of presence.
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.
