Level 3 announced the completion of its takeover of Global Crossing, first announced in April for USD 3 billion. The companies will operate under the Level 3 name going forward, with a new branding incorporating elements of both previous images. The company will operate through three business units in EMEA (Europe, the Middle East and Africa), Latin America and North America, and each business unit will have one leader accountable for sales, operations and marketing for that region. Corporate functions will be centralized in North America and will support the company globally. The corporate headquarters of the company will remain in Broomfield, Colorado. Level 3 also announced plans to switch its stock listing from the Nasdaq market to the NYSE, from 20 October. At the same time it will consolidate its shares 15 for one, after issuing 1.3 billion new shares for the all-stock takeover. The combined companies had pro forma sales of USD 6.2 billion and adjusted EBITDA of USD 1.3 billion. Level 3 reiterated a target for synergies from the takeover to add USD 300 million to annual EBITDA, with two-thirds of that realised within 18 months of closing. The deal will add to free cash flow from 2013. It also improves Level 3's credit profile and reduces the company's leverage from net debt of 6.8 times adjusted EBITDA for 2010 to an estimated 4.4 times after realisation of the synergies. As part of the closing of the transaction, Level 3 is redeeming early USD 1.35 billion in Global Crossing debt due in 2014-15.
