Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: silicon warrior who wrote (11848)	3/8/2000 2:23:00 PM
From: DubM	Read Replies (1) \| Respond to of 12468

Bank of New York, Others Begin WinStar Loan Sale New York, March 7 (Bloomberg) -- Bank of New York Co., Citigroup Inc., CIBC World Markets and Credit Suisse First Boston have begun selling a $1 billion loan for WinStar Communications Inc., people familiar with the matter said. The four banks, which have equally underwritten the senior secured bank loan, are holding a lenders meeting for managing agents today at WinStar's headquarters in New York. Banks at this level will be paid a fee of 1 1/8 percent to buy $50 million of the loan, the people said. The loan, the wireless local phone operator's first syndicated credit, will be used for general purposes, according to Daniel Briggs, director of capital market relations at WinStar. The company also plans to issue about $2 billion of junk-rated notes as part of a refinancing plan unveiled last week. The New York-based company is to privately issue $1.75 billion of dollar-denominated senior notes and senior discount notes, both with a 10-year maturity. It's also expected to sell 250 million euros ($239 million) of a 10-year senior note. The bank loan will be borrowed at the operating company level and secured on WinStar's assets, which include antennas and other parts of its wireless network. It is split between a $300 million seven-year revolving credit, a $300 million seven-year term loan and a $400 million seven-and-a-half year term loan, the people familiar said. The seven-year credit lines are set to yield 300 basis points more than the London interbank offered rate, or Libor, while the seven-and-a-half year loan should yield 350 basis points more than Libor, the people said. Some $200 million of the revolving credit will be funded at close. There is a fee of 125 basis points for any funds that remain unused. The closing of the loan is subject to certain amendments to the company's existing $500 million credit facility with Lucent Technologies Inc. That transaction is likely to be increased to $1 billion, said people familiar with those discussions. Bank of New York is lead arranger on the loan as it previously arranged a private bank line for the company. Mar/07/2000 17:57 For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.