In An Attempt To Liquidate Assets, Level 3 Sells 4.26 Million Shares

📅 March 27, 2002 - Level 3 Communications Inc., a high-speed communications network operator, announced this week that it has raised $265 million through the sale of 4.26 million shares of Common Stock to Eldorado Equity Holdings, Inc., an indirect, wholly-owned subsidiary of Level 3 (level3.com).

Level 3 expects to receive the money from the investment and a tax refund in April. Additionally, the company has received $120 million from a Federal income tax refund of approximately $120 million as a result of the economic stimulus bill legislation enacted early this year. The bill enabled the company to carry its taxable net operating losses back five years.
Increasing Level 3's liquidity position, net proceeds for this sale--excluding the potential exercise of the underwriters' over-allotment option of 638,000 shares--amount to approximately $265 million.
Earlier this month Level 3 said it expected to sell non-core assets, such as its stake in Commonwealth Telephone and RCN Corp., over the next two years to raise cash and refine its focus on its main high-speed network operations.
Shares of Level 3 closed at $3.65 on Nasdaq on Tuesday.