Level 3 forecasts margin improvement; shares rise

NEW YORK, Jan 8 (Reuters) - Telecommunications company Level 3 Communications Inc (LVLT.O) said on Thursday that it expects its margins to improve over the next two years and that it has enough cash to deal with upcoming debt maturities, helping its shares rise 25 percent.

Chief Financial Officer Sunit Patel told a Citi media and telecommunications conference that the company's EBITDA (earnings before interest, tax, depreciation and amortization) margin would likely rise in 2009 and 2010.

"EBITDA margin went from the high teens at tail-end of 2007 to now in the mid 20's, and we'll push to the high 20's over the course of this year and the 30's next year," he said.

Level 3 shares rose 24 cents to $1.20 in afternoon trade. The shares have been on the rise following the company's debt buyback in late December, a move that alleviated investors' concerns about its ability to refinance debt.

Patel said the company had enough cash to pay off all of its 2009 and 2010 debt maturities.

"We feel pretty good that we've solved all our '09 and '10 maturities issue," he said.

(Reporting by Ritsuko Ando; Editing by Phil Berlowitz)

((ritsuko.ando@thomsonreuters.com; +1 646 223 6084; Reuters Messaging: ritsuko.ando.reuters.com@reuters.net)) Keywords: LEVEL3/MARGINS

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