Bernie- I'm aware of the 1.2~1.4B need. But I thought that they
had already obtained most of it...about 800M. I also recall that
they felt that they needed only about 400M more to do 99. However,
they would not/could not give expected capital expenditures until
they had completed their planning. I also thought that they said
raising cash via a bond offering was currently unavailable due to
market conditions(it looks like this has changed).
So, with all that said, I had to wonder if they only needed 300M
(which would be a great thing). Recall, NXTL said that after they
had completed their planning, they would guide analysts to their
expected 99 expenses. Now, I'm thinking that NXTL would not give
this info out until AFTER they have secured all financing.
Therefore, if the above is true(only in need of 300M), we should
see some heavy buying since it could be said that NXTL has reduced
capital expense and is financed all through 99!
However, if they could only get 300M but wanted 400M, this would
spell disaster for NXTL. I don't know how bond offerings go, nor
if 12.75 is really high. So I ask, would/could NXTL wait until
the second half of 99 to get the rest of the 99 finances? Or
would it be suicide for NXTL to go into the Q4 CC and say they don't
have the money to finance the full 99(but are planning to get it).
Finally, does this line of thinking seem logical? It does to me
but I'm still learning the rules of finance with large startups! |
