Rodent Regatta

didn’t permit Warren Buffett’s usual method of structuring these kinds of deals. Everyone involved wanted to do a convertible preferred equity deal with similar terms. Instead, under Delaware law, the deal had to be structured as junior convertible subordinated debt.
Because of the friendship and longstanding business relationship between Mr. Buffett and Level 3’s chairman, Walter Scott, Mr. Buffett suggested that Mason Hawkins at Southeastern Asset Management be the lead investor.
All investors expressed an interest and willingness to consider further investment in the business. Expected uses of the proceeds will be for industry consolidation where the opportunity to buy a list of customers is available. They would transfer to the Level 3 network.
You can listen to the conference call about the deal here.

Buffett joins Level 3 investors. Warren Buffett’s Berkshire Hathaway and two other companies are investing $500 million in the network operator. Is a new round of consolidation in the cards for the networking industry? [CNET News.com]