Level 3 Communications, Inc. Note to Stockholders
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BROOMFIELD, Colo., July 6 /PRNewswire/ -- Level 3 Communications, Inc.,
(Nasdaq: LVLT) today released the following note to stockholders:
An article that ran today on Bloomberg.com suggests that Level 3 "may be
(among) the next telecommunications firms to file for bankruptcy -- at least
if their junk bonds are any guide."
The article, in the company's view, may be misleading in that it fails to
include certain material information.
First, the article fails to mention that Level 3 had approximately
$4.5 billion in cash and available liquidity as of the end of the first
quarter of 2001. Second, the article fails to mention that Level 3 projects
communications cash revenue of $2.1 billion for the year 2001, with
$657 million already collected in the first quarter. The company believes
that the combination of available cash and future revenues provides sufficient
funds to achieve free cash flow breakeven, projected to occur at the beginning
of 2004.
The current market volatility in the telecommunications industry may
continue to affect Level 3's stock and bond prices. However, the company
believes that, at current levels, they do not accurately reflect Level 3's
future prospects or the underlying value of its assets.
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: substantial capital
requirements; development of effective internal processes and systems; the
ability to attract and retain high quality employees; changes in the overall
economy; 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 Level3's filings with the Securities
and Exchange Commission. Statements in this release should be evaluated in
light of these important factors.
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SOURCE Level 3 Communications, Inc.
-0- 07/06/2001
/CONTACT: Media, Josh Howell, 720-888-2517, or Arthur Hodges,
720-888-6184, or Investors, Robin Miller, 720-888-2518, all of Level 3
Communications, Inc./
/Photo: NewsCom: newscom.com
PRN Photo Desk, 888-776-6555 or 212-782-2840/
/Web site: level3.com
(LVLT)
CO: Level 3 Communications, Inc.
ST: Colorado
IN: TLS FIN
SU: |
