CenturyTel pays Level 3 approximately $17M for Midwest Fiber Optic Network (MFON), which Level 3 acquired from Genuity earlier this year

December 31, 2003

1 Min Read

BROOMFIELD, Colo. -- Level 3 Communications, Inc. (Nasdaq: LVLT - News) has completed the previously announced sale of the Midwest Fiber Optic Network (MFON) to CenturyTel (NYSE: CTL - News). MFON is a regional communications system that Level 3 acquired through its transaction with Genuity, Inc. earlier this year.

CenturyTel purchased the stand-alone system, which serves as a regional backbone for a number of carriers, including CenturyTel itself, in Arkansas, Missouri and Illinois. Level 3 expects to receive approximately $17 million from CenturyTel, including cash consideration of approximately $16 million for the business and $1 million in accounts receivable. The purchase price is subject to post-closing adjustments; however, those adjustments are not expected to be material.

"We are pleased to have finalized the sale of this non-core asset," said Sunit Patel, Level 3's chief financial officer. "The geography and architecture of MFON did not offer us a cost-effective way to integrate its operations into our own. As such, we believe it made business sense to generate cash through this transaction with CenturyTel."

The MFON purchase is highly complementary to both CenturyTel's existing ILEC operations and its fiber transport subsidiary, Lightcore. It provides transport cost efficiencies, and increased fiber transport capacity in Missouri and Arkansas expanding the network by 1,400 route miles and more than 100 additional points of presence.

Level 3 Communications Inc.

CenturyTel Inc.

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