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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: mts362 who wrote (2775)	10/20/1999 5:58:00 PM
From: TechMkt	Read Replies (2) \| Respond to of 15615

Global Crossing Considers Junk Bond Sale to Pay Off Bridge Loan New York, Oct. 20 (Bloomberg) -- Global Crossing Ltd. might sell about $400 million of junk-rated notes to pay off a loan used to buy Racal Electronics Plc's U.K. phone network, said people familiar with its plans. Global Crossing, a two-year-old company that's expanding its worldwide fiber-optic cable network, said earlier this month it will buy the Racal network for about $1.65 billion in cash and assumed debt. The company said it would use $500 million of its own cash and borrow about $1.17 billion from credit agreements. The Hamilton, Bermuda-based company, with most of its operations in the U.S., may sell junk-rated notes to repay a $400 million bridge loan (240 million pounds) it set up through Goldman, Sachs & Co., people said. A $763 million (460 million pound) credit agreement is also being arranged by Goldman. Goldman Sachs, which advised Global Crossing in its Racal purchase, would be involved in arranging a note sale. Global Crossing officials, based in Los Angeles, declined to comment on the possibility of a high-yield bond. A note sale wouldn't be expected until after November when the Racal acquisition could be completed. In its most recent debt sale, Global Crossing sold $500 million of 10 1/2 percent senior exchangeable `paid-in-kind' preferred securities due in 10 years Nov. 24. Demand was strong enough at that sale, arranged by Salomon Smith Barney and Merrill Lynch & Co., that the company boosted the issue by 25 percent. The company's 9 5/8 percent notes due in 2008, also sold through Merrill Lynch and Salomon Smith Barney, are quoted at about 9.09 percent, or 290 basis points more than the 10-year Treasury benchmark, according to Bloomberg analytics. Global Crossing's senior unsecured long-term debt is rated ``Ba2' by Moody's Investors Service and ``BB' by Standard & Poor's.