SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
Level 3 Communications, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
52729N100
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(CUSIP Number)
FEBRUARY 24, 2004
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(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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Cusip No. 52729N100 13G Page 2 of 16 Pages
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1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
V. PREM WATSA
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
CANADIAN
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5 SOLE VOTING POWER
NUMBER OF SHARES
-----------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY EACH 48,041,523
-----------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON WITH -----------------------------------------------------
8 SHARED DISPOSITIVE POWER
48,041,523
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,041,523
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.6%
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12 TYPE OF REPORTING PERSON
IN
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2
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Cusip No. 52729N100 13G Page 3 of 16 Pages
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1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
1109519 ONTARIO LIMITED
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
ONTARIO, CANADA
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5 SOLE VOTING POWER
NUMBER OF SHARES
-----------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY EACH 48,041,523
-----------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON WITH -----------------------------------------------------
8 SHARED DISPOSITIVE POWER
48,041,523
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,041,523
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.6%
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12 TYPE OF REPORTING PERSON
CO
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3
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Cusip No. 52729N100 13G Page 4 of 16 Pages
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1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
THE SIXTY TWO INVESTMENT COMPANY LIMITED
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
BRITISH COLUMBIA, CANADA
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5 SOLE VOTING POWER
NUMBER OF SHARES
-----------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY EACH 48,041,523
-----------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON WITH -----------------------------------------------------
8 SHARED DISPOSITIVE POWER
48,041,523
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,041,523
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.6%
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12 TYPE OF REPORTING PERSON
CO
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4
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Cusip No. 52729N100 13G Page 5 of 16 Pages
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1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
810679 ONTARIO LIMITED
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
ONTARIO, CANADA
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5 SOLE VOTING POWER
NUMBER OF SHARES
-----------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY EACH 48,041,523
-----------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON WITH -----------------------------------------------------
8 SHARED DISPOSITIVE POWER
48,041,523
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,041,523
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.6%
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12 TYPE OF REPORTING PERSON
CO
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5
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Cusip No. 52729N100 13G Page 6 of 16 Pages
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1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
FAIRFAX FINANCIAL HOLDINGS LIMITED
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
CANADA
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5 SOLE VOTING POWER
NUMBER OF SHARES
-----------------------------------------------------
BENEFICIALLY 6 SHARED VOTING POWER
OWNED BY EACH 48,041,523
-----------------------------------------------------
REPORTING 7 SOLE DISPOSITIVE POWER
PERSON WITH -----------------------------------------------------
8 SHARED DISPOSITIVE POWER
48,041,523
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
48,041,523
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
6.6%
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12 TYPE OF REPORTING PERSON
CO
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6
ITEM 1.(a) NAME OF ISSUER:
Level 3 Communications, Inc.
ITEM 1(b) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
1025 Eldorado Blvd., Broomfield, CO 80021
ITEM 2.(a) NAME OF PERSON FILING:
This statement is being jointly filed by the following persons
(collectively, the "Reporting Persons"):
1. V. Prem Watsa, an individual;
2. 1109519 Ontario Limited ("1109519"), a corporation
incorporated under the laws of Ontario;
3. The Sixty Two Investment Company Limited ("Sixty Two"),
a corporation incorporated under the laws of British
Columbia;
4. 810679 Ontario Limited ("810679"), a corporation
incorporated under the laws of Ontario; and
5. Fairfax Financial Holdings Limited ("Fairfax"), a
corporation incorporated under the laws of Canada.
ITEM 2(b) ADDRESS OF PRINCIPAL BUSINESS OFFICE:
The addresses of the Reporting Persons are as follows:
1. Mr. Watsa's business address is 95 Wellington Street
West, Suite 800, Toronto, Ontario M5J 2N7;
2. The principal business address and principal office
address of 1109519 is 95 Wellington Street West, Suite
800, Toronto, Ontario M5J 2N7;
3. The principal business address and principal office
address of Sixty Two is 1600 Cathedral Place, 925 West
Georgia St., Vancouver, British Columbia V6C 3L3;
4. The principal business address and principal office
address of 810679 is 95 Wellington Street West, Suite
800, Toronto, Ontario M5J 2N7; and
5. The principal business address and principal office
address of Fairfax is 95 Wellington Street West, Suite
800, Toronto, Ontario M5J 2N7.
7
ITEM 2(c) CITIZENSHIP:
V. Prem Watsa is a citizen of Canada.
ITEM 2(d) TITLE OF CLASS OF SECURITIES:
Common Stock
ITEM 2(e) CUSIP NUMBER:
52729N100
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULE 13d-1(b), OR
13d-2(b) OR (c), CHECK WHETHER THE PERSON FILING IS A:
(a) [ ] Broker or Dealer registered under Section 15 of the Act
(15 U.S.C. 78o);
(b) [ ] Bank as defined in section 3(a)(6) of the Act (15 U.S.C.
78c);
(c) [ ] Insurance Company as defined in section 3(a)(19) of the
Act (15 U.S.C. 78c);
(d) [ ] An Investment Company registered under section 8 of the
Investment Company Act of 1940 (15 U.S.C. 80a-8);
(e) [ ] An investment adviser in accordance with Section
240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance
with Section 240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person, in accordance
with Section 240.13d-1(b)(1)(ii)(G);
(h) [ ] A savings associations as defined in Section 3(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1813);
(i) [ ] A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3);
(j) [ ] Group, in accordance with Section 240.13d-1(b)(1)(ii)(J).
ITEM 4. OWNERSHIP.
Based on the most recent information available, the aggregate number and
percentage of the shares of common stock (the "Shares") of Level 3
Communications, Inc. that are beneficially owned by each of the Reporting
Persons is set forth in boxes 9 and 11 of the second part of the cover page to
this Schedule 13G, and such information is incorporated herein by reference.
8
The number of Shares as to which each of the Reporting Persons has sole voting
power, shared voting power, sole dispositive power and shared dispositive power
is set forth in boxes 5, 6, 7 and 8, respectively, on the second part of the
cover page to this Schedule 13G, and such information is incorporated herein by
reference.
Shares reported as beneficially owned include Shares issuable upon conversion of
certain convertible debt securities.
Neither the filing of this Schedule 13G nor the information contained herein
shall be deemed to constitute an affirmation by V. Prem Watsa, 1109519, Sixty
Two, 810679 or Fairfax that such person is the beneficial owner of the Shares
referred to herein for purposes of Section 13(d) or 13(g) of the Securities
Exchange Act of 1934, as amended, or for any other purpose, and such beneficial
ownership is expressly disclaimed.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER
PERSON.
Certain of the Shares (and/or the convertible debt securities that are
convertible into Shares) beneficially owned by the Reporting Persons are held by
subsidiaries of Fairfax, which subsidiaries have the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
such securities. No such interest of a subsidiary relates to more than 5% of the
class of Shares.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
COMPANY.
Not applicable
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
See attached Exhibit No. 1.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable
ITEM 10. CERTIFICATION.
By signing below I certify that, to the best of my knowledge and belief, the
securities referred to above were not acquired and are not held for the purpose
of or with the effect of changing or influencing the control of the issuer of
the securities and were not acquired and are not held in connection with or as a
participant in any transaction having that purpose or effect.
9
SIGNATURE
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
Dated: February 22, 2005 V. Prem Watsa
/s/ V. Prem Watsa
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10
SIGNATURE
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
Dated: February 22, 2005 1109519 Ontario Limited
By: /s/ V. Prem Watsa
------------------------------------
Name: V. Prem Watsa
Title: President
11
SIGNATURE
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
Dated: February 22, 2005 The Sixty Two Investment Company Limited
By: /s/ V. Prem Watsa
------------------------------------
Name: V. Prem Watsa
Title: President
12
SIGNATURE
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
Dated: February 22, 2005 810679 Ontario Limited
By: /s/ V. Prem Watsa
------------------------------------
Name: V. Prem Watsa
Title: President
13
SIGNATURE
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
Dated: February 22, 2005 Fairfax Financial Holdings Limited
By: /s/ Paul Rivett
------------------------------------
Name: Paul Rivett
Title: Vice President
14
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
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1 Members of filing group.
2 Joint Filing Agreement dated as of February 22, 2005
among V. Prem Watsa, 1109519 Ontario Limited, The Sixty
Two Investment Company Limited, 810679 Ontario Limited
and Fairfax Financial Holdings Limited.
15