Level 3 to cut $8bn debt mountain

ISP struggles to reduce debt...

ISP struggles to reduce debt...

Level 3 Communications plans a debt-to-equity swap in order to cut its $8bn debt load. According to analysts the buy-back - at $1.8bn - will remove a large proportion of the company's $8bn debt. The company will pay between 37 cents and 57 cents on the dollar to repurchase the debt, which includes both dollar and euro-denominated bonds and convertible securities. Analysts say the buy-back will induce a 3 to 5 point jump in the price of Level 3's bonds on the news.