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Technology Stocks : Rhythms NetConnections Inc. (RTHM)
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To: Bald Man from Mars who wrote (326)11/1/2000 10:19:34 AM
From: lightfoot  Read Replies (2) of 378
 
FWIW RTHM filed an S3 yesterday to sell another 3 million shares in order to pay the dividends on their preferred shares. At the rate of 3 million shares per quarter to pay this dividend (at $2.74 per share) the dilution that is ongoing may continue to provide downward pressure. Buyouts? They have a lot of cash, but they are leveraged at 123% of the cash on hand.

I am not short, I was following this stock looking for a good entry point after tax loss selling was over. After looking through all the Filings last night I am going to find greener pastures.

Here is the link to all the recent filings to sell shares (424B3) and the S3. It is on Free Edgar so you may have to register.

freeedgar.com

Excerpt:
OUR SUBSTANTIAL DEBT CREATES FINANCIAL AND OPERATING RISK

We are highly leveraged, and we intend to seek additional debt funding in the future. As of September 30, 2000, we had approximately $825.4 million of outstanding long-term debt and approximately $490.0 million of mandatorily redeemable preferred stock. Our long-term debt and preferred stock represent approximately 123% of our total capitalization. We are not generating sufficient operating revenues to fund our operations or to repay our debt.
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