FIN 470 Project Analysis Paper

FIN 470 Project Analysis Paper - TO: FROM: DATE: SUBJECT:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
TO: FROM: DATE: SUBJECT: Level (3) Communications risks Level (3) Communications is a company that operates one of the world’s first Internet protocol (IP)-based fiber-optic networks. Level 3 is a leading provider of wholesale service including dial-up service with broadband internet connectivity for high-speed internet users. Level (3) Communications has accumulated large debt over the years with $6.8 billion in long-term debt and $958 million in current liabilities (short-term debt). Level (3) Communications has a debt to equity ratio of 6.4 in comparison to an industrial average of 1.8. The company is highly leveraged and can not pay most of its debt. As the recession begins, the growth of bandwidth usage will fall and consumers will not purchase bandwidth consuming devices such as netflix downloads. The Company has also been focused on improving its liquidity and financial condition, including efforts to extend the maturity dates of certain debt and lowering the effective interest rate on its
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/06/2008 for the course FIN 470 taught by Professor Staff during the Spring '05 term at Kentucky.

Page1 / 3

FIN 470 Project Analysis Paper - TO: FROM: DATE: SUBJECT:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online