Shares of Level 3 Communications Inc. (LVLT) were off by 14 percent to $1.02 Tuesday morning. The Colorado-based Internet networking provider announced that it plans to raise as much as $175 million in Convertible Senior Notes due 2016.
Level 3 is giving the offering’s underwriters, which include BofA’s Merrill Lynch (BAC), Citigroup (C), JP Morgan (JPM) and Morgan Stanley (MS), the option to purchase an additional $26.25 million in notes.
From a technical analysis perspective: LVLT shares closed at $1.12 in the last trading session and opened today at $1.07. The stock printed a hod of $1.07 before starting to hover around the $1.00 level. LVLT has currently a trading volume of over 31 million shares, which is more than than three times the ticker’s daily average of 9,893,200.
Resistance Levels are at $1.15 and $1.20
Support Levels: $1.00. If LVLT breaks the current support level, look for the next leg down and for the stock to test its 52 wk lows of $0.95.
LVLT is trading below the 50 day moving average of $1.09 and lower than the 200 day moving average of $1.35. The stock’s 52 week high is $1.77.
Disclosure: No Position