[WINSTAR NEW MEDIA]
(hopefully) a precursor to selling or spinning off this business?
mark
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WINSTAR NEW MEDIA OBTAINS $15 MILLION LINE OF CREDIT FROM ING
BARINGS; WinStar Subsidiary Establishes Independent Capital
Base to Fund Growth
NEW YORK--(BUSINESS WIRE)--January 28, 1998--WINSTAR NEW MEDIA,
A SUBSIDIARY OF WINSTAR COMMUNICATIONS, INC. (NASDAQ-WCII),
announced today it has obtained a $15 million revolving credit line
from ING Barings. The new stand-alone credit facility is secured
only by WinStar New Media accounts receivable and other assets, and
will be used to fund continued growth in the unit's services to
businesses and schools.
Stuart B. Rekant, President of WinStar New Media, said today:
"This is the first in a series of steps we are taking to secure
independent funding for our long-term business plan. We see enormous
opportunities to develop information products that utilize the
broadband services provided by WinStar, and want to make sure we have
the capital resources necessary to realize our potential." Rekant
also indicated that the company is planning additional acquisitions
which would build on the recent purchase of WinStar Telebase to
further leverage the telecommunications sales force and customer
base.
Providing additional comment on today's announcement, William J.
Rouhana, Jr., Chairman and Chief Executive Officer of WinStar
Communications, said: "It is gratifying to see our New Media
subsidiary evolve to the point where it can establish its own
independent sources of capital. The information services provided by
this unit are being designed to meet the expressed needs of our
customers. As we build this part of our business, we differentiate
WinStar from other telecommunications companies and also strengthen
customer loyalty by adding services which take full advantage of the
broadband connectivity our company provides."
WinStar New Media provides information services and other content
as a complement to WinStar's telecommunications activities. WinStar
Communications, Inc. is a national local communications company,
serving business customers, long distance carriers, fiber-based
competitive access providers, mobile communications companies, local
telephone companies, and other customers with broadband local
communications needs. The company provides its Wireless Fiber(SM)
services using its licenses in the 38 GHz spectrum. The company also
provides long distance, Internet and information services.
Except for any historical information contained herein, the matters
discussed in this press release contain forward-looking statements
that involve risks and uncertainties which are described in the
company's SEC reports, including the 10-K for the period ended
December 31, 1996, and the 10-Q for the period ended September 30,
1997.
WinStar is a registered trademark, and Wireless Fiber is a service
mark of WinStar Communications, Inc.
CONTACT: Financial Community Press
Frank Jepson Laura Abbott
SVP, Investor Relations (212) 584-4076
(212) 584-4021 labbott@winstar.com |
