Former Genuity Asset Will be Purchased by CenturyTel
BROOMFIELD, Colo., Aug. 19 /PRNewswire-FirstCall/ --
Level 3 Communications, Inc. (Nasdaq: LVLT) announced today that it has signed
a definitive agreement to sell the Midwest Fiber Optic Network (MFON), a
regional communications system it acquired through its recent transaction with
Genuity, Inc.
CenturyTel (NYSE: CTL) will purchase the stand-alone system, which serves
as a regional backbone for a number of carriers, including CenturyTel itself,
in Arkansas, Missouri and Illinois. The purchase price is approximately
$17 million in cash, subject to adjustments including date of closure and
system revenue at time of close. Closing is subject to regulatory approvals
and customary conditions.
"This is a non-core asset for Level 3," said Sunit Patel, Level 3's chief
financial officer. "While MFON currently generates approximately $1.5 million
a month in revenue, the geography and architecture of the system do not offer
us a practical or cost-effective way to integrate its operations into the
Level 3 network. As such, we believe it makes sense to sell this business and
continue to focus on the integration of the core assets, customers and traffic
from the Genuity transaction."
Closing is expected to occur by the end of the fourth quarter of 2003.
Daniels & Associates, the Denver-based media and telecommunications
mergers and acquisitions specialist, served as financial advisor to Level 3 on
this transaction.
About Level 3 Communications
Level 3 (Nasdaq: LVLT) is an international communications and information
services company. The company operates one of the largest Internet backbones
in the world, is one of the largest providers of wholesale dial-up service to
ISPs in North America and is the primary provider of Internet connectivity for
millions of broadband subscribers, through its cable and DSL partners. The
company offers a wide range of communications services over its 22,500-mile
broadband fiber optic network including Internet Protocol (IP) services,
broadband transport, colocation services, and patented Softswitch-based
managed modem and voice services. Its Web address is www.Level3.com.
The company offers information services through its subsidiaries,
(i)Structure and Software Spectrum. For additional information, visit their
respective web sites at www.softwarespectrum.com, and www.i-structure.com.
About CenturyTel
CenturyTel, Inc.
provides communications services including local, long
distance, Internet access and data services to more than 3 million customers
in 22 states. The company, headquartered in Monroe, Louisiana, is publicly
traded on the New York Stock Exchange under the symbol CTL, and is included in
the S&P 500 Index. CenturyTel is the 8th largest local exchange telephone
company, based on access lines, in the United States. Visit CenturyTel at
www.centurytel.com.
Forward Looking Statement
Some of the statements made by Level 3 in this press release are forward-
looking in nature. Actual results may differ materially from those projected
in forward-looking statements. Level 3 believes that its primary risk factors
include, but are not limited to: changes in the overall economy relating to,
among other things, the September 11 attacks and subsequent events, the
challenges of integration, substantial capital requirements; development of
effective internal processes and systems; the ability to attract and retain
high quality employees; technology; the number and size of competitors in its
markets; law and regulatory policy; and the mix of products and services
offered in the company's target markets. 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 release should be
evaluated in light of these important factors.
SOURCE Level 3 Communications, Inc.; CenturyTel, Inc.
-0- 08/19/2003
/CONTACT: Media, Josh Howell, +1-720-888-2517, or Arthur Hodges,
+1-720-888-6184, or Investors, Robin Grey, +1-720-888-2518, all of Level 3; or
Media, Annmarie Sartor, +1-318-388-9671, or Investors, Tony Davis,
+1-318-388-9525, both of CenturyTel/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990721/LVLTLOGO
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840/
/Web site: http://www.level3.com
http://www.centurytel.com /
(LVLT CTL)
CO: Level 3 Communications, Inc.; CenturyTel, Inc.
; Genuity, Inc.
; Daniels &
Associates
ST: Colorado, Arkansas, Missouri, Illinois, Louisiana
IN: CPR TLS
SU: TNM
JH
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2586 08/19/2003 07:00 EDT http://www.prnewswire.com