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Level 3 to buy back notes, affirms outlook

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BROOMFIELD, Colo. (AP) — Level 3 Communications Inc. said Tuesday it is looking to buy back about $550 million in debt and reaffirmed its adjusted profit forecast for 2009.

The company, which provides Internet networking services, said it has launched a tender offer for $550 million in 12.25 percent notes due in 2013. It will pay bond holders who accept by the Jan. 19 deadline $1,080 for every $1,000 in notes they hold.

The company plans to fund the buyback by selling $640 million in new notes that will mature in 2018.

Level 3 said it still expects its earnings before interest, taxes depreciation and amortization, or EBITDA, of $900 million to $950 million for 2009. The company is scheduled to report financial results for the year in February.