SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
(Amendment No. 2)*
Under the Securities Exchange Act of 1934
Level 3 Communications, Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
52729N100
(CUSIP Number)
DECEMBER 31, 2006
(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).
Cusip No. 52729N100 13G Page 2 of 15 Pages
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1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
V. PREM WATSA
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
CANADIAN
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 29,804,901
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
29,804,901
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
29,804,901
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
2.2%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
IN
--------------------------------------------------------------------------------
2
Cusip No. 52729N100 13G Page 3 of 15 Pages
--------------------------------------------------------------------------------
1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
1109519 ONTARIO LIMITED
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
ONTARIO, CANADA
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 29,804,901
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
29,804,901
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
29,804,901
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
2.2%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
3
Cusip No. 52729N100 13G Page 4 of 15 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
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
BRITISH COLUMBIA, CANADA
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 29,804,901
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
29,804,901
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
29,804,901
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
2.2%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
4
Cusip No. 52729N100 13G Page 5 of 15 Pages
--------------------------------------------------------------------------------
1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
810679 ONTARIO LIMITED
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
ONTARIO, CANADA
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 29,804,901
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
29,804,901
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
29,804,901
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
2.2%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
5
Cusip No. 52729N100 13G Page 6 of 15 Pages
--------------------------------------------------------------------------------
1 Names of Reporting Person/I.R.S. Identification Nos. of Above Persons
(Entities Only)
FAIRFAX FINANCIAL HOLDINGS LIMITED
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 CITIZENSHIP OR PLACE OF ORGANIZATION
CANADA
--------------------------------------------------------------------------------
5 SOLE VOTING POWER
-----------------------------------------------------------------
NUMBER OF 6 SHARED VOTING POWER
SHARES
BENEFICIALLY 29,804,901
OWNED BY -----------------------------------------------------------------
EACH 7 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -----------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
29,804,901
--------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
29,804,901
--------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
[ ]
--------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
2.2%
--------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
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 represent 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.
If this statement is being filed to report the fact that as of the date hereof
the reporting person has ceased to be the beneficial owner of more than 5
percent of the class of securities, check the following [x].
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Certain of 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 14, 2007 V. Prem Watsa
/s/ V. Prem Watsa
----------------------------------------
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 14, 2007 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 14, 2007 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 14, 2007 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 14, 2007 Fairfax Financial Holdings Limited
By: /s/ Paul Rivett
------------------------------------
Name: Paul Rivett
Title: Vice President
14
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
----------- -----------
1 Members of filing group.
2 Joint Filing Agreement dated as of February 14, 2007 among V. Prem
Watsa, 1109519 Ontario Limited, The Sixty Two Investment Company
Limited, 810679 Ontario Limited and Fairfax Financial Holdings
Limited.
15