NEW YORK (Dow Jones)Winstar Communications Inc. (WCII) expects to sell some excess capacity "in
the next couple of months," said Chairman and Chief Executive William Rouhana.
Market conditions make capacity sales a better funding option for Winstar than equity or debt
offerings, Rouhana said at a conference hosted by Credit Suisse First Boston.
"At a time when our bonds are mispriced" and Winstar stock is undervalued, Rouhana said, "we're
not thinking about raising capital through equity or debt."
Winstar probably won't tap capital markets this year, he said, but instead it will sell assets and
enter vendor financing pacts. A deal with a vendor in the coming months "is almost a certainty,"
Rouhana said.
Winstar is also having ongoing discussions with cable operators, but a deal with a longhaul
carrier is more likely, Rouhana said.
Selling assets is a better cash source than cutting accounts receivable, although that is also a goal,
he said.
Winstar's stated goal of reducing average days of sales outstanding on accounts to 60 days this
year, from 90, is "aggressive but doable," Rouhana added.
By Christine Nuzum, Dow Jones Newswires; 2019385172
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