Ok, Just looked at their 10k filed last month. Long term debt is $3.5 b. But they have another $650 in liabilities.
They have $120m in cash. They list $400m in "trade receivables" and $84 million in defered and prepaid expenses.
They had a operating loss of $275m for the first 6 month of the year. Add to that $114m in interest payments.
They took in $100m last month from the private placement of 36m shares of stock.
Unless you think that the "trade receivables" are really going to magically convert into cash, they are just about out of money about right now.
This from the 10K:
We announced on August 1, 2001, that investment funds controlled by Forstmann
Little & Co. ("Forstmann Little") agreed to invest $100 million in the Company
to provide additional funding. In exchange for the investment, the Company will
issue 36.4 million shares of the Company's Class A common stock. Forstmann
Little has also agreed to exchange the convertible preferred stock it acquired
in 1999 for convertible preferred stock that has no dividend. The conversion
price of the Forstmann Little preferred stock will be reduced from the current
conversion price of $12.17 per share to $6.10. The transaction is subject to
customary closing conditions and is expected to be completed by the end of the
third quarter. Once closed, Forstmann Little's investment in the Company will
increase to $1.1 billion, representing a fully diluted ownership interest in the
Company of approximately 20%.
As of August 3, 2001 based on our business plan, capital requirements and growth
projections as of that date, we estimate that we will require approximately $700
million from July, 2001 through 2002 to fund our planned capital expenditures.
Our estimated aggregate capital requirements include the projected costs of:
. expanding our fiber optic communications network, including national and
intra-city fiber optic networks
. adding voice and data switches
. constructing, acquiring, developing or improving telecommunications
assets in existing and new markets
16
We expect to meet these funding needs through various sources, including
existing cash balances, the existing McLeodUSA lines of credit, prospective
sales of selected assets and cash flow from future operations. |
