Level 3 to Raise $325M

Adding to its already cushy cash reserve, Level 3 Communications will sell $325 million worth of convertible seven-year notes over the next week — money that could be used to snap up ailing telecommunications companies.

The offering is $75 million more than originally planned and should be completed by Tuesday. Under terms of the agreement, underwriters, led by Citigroup, may purchase an additional $48.75 million worth of notes to cover over-allotments.

Level 3 provides wholesale communications services such as Internet access to service providers including Verizon, as well as enterprises. Earlier this year, it completed its acquisition of bankrupt rival Genuity for $137 million in cash and said it would hunt for other takeover targets.

The Broomfield, Colo., company is reportedly among those interested in the assets of bankrupt Global Crossing, although that company is dealing exclusively with Singapore Technologies Telemedia.

Level 3 is among those with the cash to consider such major shopping sprees. Last year it socked away $500 million from famed investor Warren Buffet as well as the investment firms of Longleaf Partners and Legg Mason.