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Summary:

Standard & Poor’s has slashed the debt rating of Level 3 Communications “deeper into junk territory and said it may cut it again, citing the company’s cash tender offers for debt due in 2008,” reports Reuters. Why? Because the company is refinaning its debt, and under […]

Standard & Poor’s has slashed the debt rating of Level 3 Communications “deeper into junk territory and said it may cut it again, citing the company’s cash tender offers for debt due in 2008,” reports
Reuters
. Why? Because the company is refinaning its debt, and under the “proposed tender offers, debt holders will receive less than full value for their bonds, and S&P said it thus views the tender as tantamount to a default. Moreover, the tender offers and proposed refinancing will not materially reduce the company’s onerous $5.1 billion debt balance, S&P
said.”

  1. lets see, your WARREN BUFFETT and you BUY Level3 bonds at .40 cents on the dollar and get an OFFER to cash in early for .85 cents on the dollar??????? and THUS, S&P sees this as DEFAULT????????

    I see a DOUBLE, they see Default-somewhere in the middle is reality!

    skibare

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  2. Just make Sure it’s not a XOXO Communications deal I saw last time…LOL…

    Heir Canada

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