Andy:
I posted a message regarding this issue over on Yahoo earlier this evening.
Here is the post:
PEGASO! Everyone read this! OK!
by: PCSTEL 01/28/02 09:08 pm
Msg: 15277 of 15279
"This sounds pretty scary to me. "
Depends if you are worried about LWIN getting called on their loan guarantee.
Let's make this CLEAR! LWIN's MAXIMUM guarantee for any Pegaso debt is 33 Million Dollars! PERIOD! End of subject.
From the 10-K
sec.gov t
"In May 1999, a Pegaso subsidiary also entered into aworking capital facility with several banks with credit support from Qualcomm. We guaranteed 33% of Pegaso's obligations under the initial commitment from the lenders of $100 million. At December 31, 2000, the maximum amount of the loan had been increased to approximately $300.0 million although the amount of our guarantee was not increased."
It was a credit facility that was issued by banks "with Credit Support from Qualcomm" In which LWIN's guarantee was limited to 33% or the original 100 million facility.
From the Qualcomm 2001 10-k
"We provided financing to Pegaso Telecomunicaciones, S.A. de C.V. (Pegaso) under an equipment loan and a bridge facility. Pegaso operates a wireless network in Mexico. At September 30, 2001, $674 million is outstanding under these facilities, net of deferred interest and unearned fees. On October 31, 2001, Pegaso failed to make a scheduled payment of approximately $3 million under the equipment loan and also failed to meet covenants related to the completion of a strategic sale or merger with a third party under both facilities. Pegaso is currently engaged in strategic discussions with a third party for a potential sale or merger, and we are actively working with Pegaso and the third party to complete a transaction or, alternatively, to assist Pegaso in raising additional funds."
From the Qualcomm 1999 10-K
"On October 29, 1999, the Company and Pegaso Telecomunicaciones ("Pegaso") executed a commitment letter, subject to Pegaso shareholder approval, in which the Company agreed to provide up to $500 million of debt financing to Pegaso and its wholly-owned subsidiary, Pegaso Comunicaciones y Sistemas, a CDMA wireless operating company in Mexico. >>>>The debt financing would consist of a $250 million senior secured facility and a $250 million unsecured facility. The Company currently has guaranteed a $100 million facility that would be refinanced by the $250 million senior secured facility."<<<
So to put this in perspective. Qualcomm is the guarantor of First Recourse for the original 100 million dollar Pegaso facility. LWIN has agreed to guarantee 33 million of that original 100 million facility to Qualcomm, not the banks. Later in the same year. Qualcomm agreed to finance another 400 million in debt financing. The original 100 million dollars facility was rolled into a 250 million dollar senior secured facility.
Qualcomm is the guarantor of FIRST RECOURSE on the 33 Million dollar LWIN guarantee!
PCSTEL |
