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Strategies & Market Trends : Making Money is Main Objective

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To: Softechie who started this subject	4/2/2001 1:41:41 PM
From: Softechie	Read Replies (1) of 2155

DJ Winstar Down -3: Analyst Sees Need For Budget Cuts ¸ 02 Apr 12:21 "In order to reduce the company's funding gap to free cash flow, Winstar has to reduce its capital expenditure budget in order to bring the funding shortfall to a manageable and attainable number," said Aryeh Bourkoff, a high-yield analyst at UBS Warburg. Winstar had $302.7 million in cash and cash equivalents at the end of September, and another $53.5 million in easily negotiable short-term investments. At the end of December, Winstar had $400 million in vendor financing available through Lucent and another $300 million available through Cisco Systems Inc. (CSCO) and Compaq Computer Corp. (CPQ). The company's most recent quarterly filing shows that the company burned through $368 million in the first nine months of 2000. Investors are worried about Winstar's debt. The company's recent filing shows about $3.4 billion in long-term debt. Winstar paid $95.6 million in quarterly interest on its debt in the third quarter of 2000. Concerns have been mounting about how able the company will be to repay its debt, especially in a market where it's unlikely to raise new cash. Winstar shares have fallen 89% since Feb. 27, when the company reported fourth-quarter results. Ratings agency Standard & Poor's put Winstar's B-minus unsecured debt rating on credit watch with negative implications earlier this month. The agency said in a release that it was worried about Winstar's increased reliance on vendor and bank debt over the past year. Winstar secured a new $1.15 billion senior credit facility from a group of commercial banks late last year. Amounts drawn under the credit facility, which is now fully tapped, are secured by Winstar's assets. -By Christine Nuzum, Dow Jones Newswires; 201-938-5172 -By Carol Remond, Dow Jones Newswires; 201-938-2074 (END) DOW JONES NEWS 04-02-01 12:21 PM

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