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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Chow who wrote (4710)	10/2/1999 11:56:00 PM
From: Curtis Gruber	Respond to of 5650

Been a while.... glad to see the thread is not dead. Thanks to Lupaka(Yahoo board) for the SEC link: freeedgar.com Few key excerpts: 1) "As of June 30, 1999, after giving pro forma effect to the issuance in July 1999 of $1.2 billion aggregate principal amount of 11% senior notes, PSINet's total indebtedness would have been $2.4 billion, representing 82% of total capitalization. " 2) "As a result of the completion of the 11% senior notes offering, PSINet's annual interest expense on its outstanding 11% senior notes, 10% senior notes and 11 1/2% senior notes will be $241.5 million, assuming an exchange rate of Euro 0.92 to U.S $1.00, which was the average exchange rate for the period from January 1 to June 30, 1999." 3)"PSINet historically has been unable to generate sufficient cash flow from operations to meet its operating needs and has relied on equity, debt and capital lease financings to fund its operations. However, based on PSINet's current level of operations, management believes that existing working capital, existing credit facilities, capital lease financings and proceeds of future equity or debt financings will be adequate to meet its presently anticipated future requirements for working capital, capital expenditures and scheduled payments of interest on its debt. 4) " At June 30, 1999, PSINet was obligated to make future payments that total $73.9 million for acquisitions of global fiber-based telecommunications bandwidth, including indefeasible rights of use or other rights." 5) Over the 22 months ended July 31, 1999, PSINet acquired 32 ISPs primarily in 14 of the 20 largest global telecommunications markets. 6) "As with each of PSINet's recent acquisitions, the purchase price of many of the businesses that might become attractive acquisition candidates for PSINet likely will significantly exceed the fair values of the tangible net assets of the acquired businesses. " 7) "Revenue from PSINet's non-U.S. operations continues to increase as a percentage of consolidated results, comprising 51% of revenue in the second quarter of 1999. 8) "PSINet's estimated total costs related to Y2K issues for 1999 is not expected to exceed $2.0 million. " 9) PSINet believes that there is a move toward horizontal integration through acquisitions of, joint ventures with, and the wholesale purchase of connectivity from ISPs to address the Internet connectivity requirements of the current business customers of long distance and local carriers. The WorldCom/MFS/UUNet consolidation, the WorldCom/MCI merger, the ICG/NETCOM merger, Cable & Wireless' purchase of the internetMCI assets, the Intermedia/DIGEX merger, GTE's acquisition of BBN, Global Crossing's recently announced plans to acquire Frontier Corp and Frontier's prior acquisition of Global Center, Qwest Communication's recently announced plans to acquire US West and AT&T's purchase of IBM's global communications network are indicative of this trend." 10) PSINet's subsidiaries have also received competitive local exchange carrier, or CLEC, certification in New York, Virginia, Colorado and Texas, and have applied for CLEC certification in Maryland and California. PSINet is considering the financial, regulatory and operational implications of becoming a competitive local exchange carrier in other states. " 11) "As of June 30, 1999, PSINet served approximately 73,400 business accounts, including 364 ISPs." just a few items that stood out to me. regards, cg