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Technology Stocks : PCW - Pacific Century CyberWorks Limited
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To: ms.smartest.person who wrote (287)2/7/2001 10:59:32 PM
From: ms.smartest.person  Read Replies (1) of 2248
 
PCCW's CB issued to Telstra w/ exercise price at $6.886

2001-02-08 10:26

(Infocast News) PCCW (0008) announced that the strategic alliance with Telstra was completed on 7 February 2001. The US$750 million subordinated convertible bond PCCW issued to Telstra set an initial conversion price at $6.886 per share, representing a premium of 47.29% to the closing price of $4.675 yesterday.

PCCW & Telstra create an IP backbone company, which is to be named Reach. In addition to the 50% interest in REACH acquired by each of PCCW and Telstra, PCCW received approximately US$1.125 billion and Telstra received approximately US$375 million, respectively, in cash as the purchase price payable by REACH for their respective global connectivity businesses.

In addition, PCCW sold to Telstra a 60% interest in Regional Wireless Company for US$1.68 billion in cash.

Besides, PCCW and Telstra also form IDC Company, which is 50% interest owned by each of them.

The principal amount of approximately US$7.66 billion which was outstanding under the facilities agreement dated 29 February 2000 has been repaid in full. Pursuant to the IPBC Commitment Letter and the HKTC Commitment Letter, each of REACH and PCCW-HKT Telephone has entered into definitive loan documentation with separate syndicates of lenders and have drawn down US$1.5 billion and US$4.7 billion, respectively. REACH used the funds for the acquisition of the respective global connectivity businesses of PCCW and Telstra. PCCW-HKT Telephone used the funds partly to refinance the bridge loan and partly to provide additional working capital for PCCW and its subsidiaries.


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