Level 3 Comm. Chairman Walter Scott To Retire, James Ellis Named Successor

(RTTNews) - Facilities-based communications service provider Level 3 Communications, Inc. (LVLT) said Monday that long-time chairman of the company's board of directors, Walter Scott, Jr., plans to retire from the board effective with the annual meeting of stockholders in May 2014. As part of a transition plan, the company will appoint James Ellis, Jr., as chairman of the board, succeeding Scott.

Separately, Level 3 Communications said it will redeem 6.5 percent convertible senior notes due 2016 on December 26, 2013.

Broomfield, Colorado-based Level 3 Communications noted that in connection with his retirement, Scott will not stand for reelection at the annual meeting in May 2014. Scott, aged 82, has served as chairman of the board since 1979 and has been a member of the board since 1964. Ellis' appointment as chairman will be effective immediately after the May 2014 annual meeting.

Ellis has been a member of the company's board since March 2005 and is the chairman of the board's Classified Business and Security Committee as well as a member of the Nominating and Governance Committee. He is also currently a member of the board of directors of Lockheed Martin Corp. (LMT), Dominion Resources, Inc.(D) and Inmarsat PLC (IMASY). Ellis retired with the rank of Admiral from the U.S. Navy after 35 years of service.

Jeff Storey, president and chief executive officer of Level 3 Communications said, "On behalf of the employees of Level 3 worldwide, I want to acknowledge Walter's leadership of the Board for the more than 15 years since the start of the Level 3 business. Our business and all of our stakeholders have been the beneficiaries of his steady leadership, guidance and insights, and I believe that in no small measure we are in the position that we are today as a result."

In a separate statement, Level 3 Communications said it has notified the holders of its 6.5 percent senior convertible notes due 2016 that it will redeem the notes on December 26, 2016 for a redemption price equal to their principal amount plus accrued but unpaid interest up to, but not including, the redemption date. The company noted that about $201.25 million principal amount of 6.5 percent notes remain outstanding.

The 6.5 percent notes will continue to be convertible into Level 3 common stock until December 24, 2013, the last trading day prior to the redemption date. A holder will receive 53.9811 shares of Level 3 common stock for each $1,000 principal amount of the 6.5 percent notes surrendered for conversion.

Level 3 Communications said that it will not pay accrued and unpaid interest upon conversion of the 6.5 percent notes. The last reported sale price of Level 3's common stock on November 22, 2013 was $29.50 per share.

LVLT closed Friday's regular trading at $29.50, up $0.41 on a volume of 1.33 million shares.