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

To: SecularBull who wrote (6490)	6/13/2000 6:34:00 PM
From: Andriy Turhovach	Read Replies (1) \| Respond to of 15615

Seems like DT sure is trying to raise an awful lot of cash lately. (REUTERS) UPDATE 1-Deutsche Telekom to sell $8 bln global bonds UPDATE 1-Deutsche Telekom to sell $8 bln global bonds (New throughout, adds byline) By Jonathan Stempel NEW YORK, June 13 (Reuters) - Deutsche Telekom AG <DTEGn.DE>, Europe's largest telephone company and the world's third largest, plans this month to sell about $8 billion of global bonds, which would match the second-biggest corporate bond sale ever, sources familiar with the sale said. Only Ford Motor Credit Co., the financing arm of Dearborn, Mich.-based auto giant Ford Motor Co. <F.N>, has sold more corporate bonds in a single sale. It sold $8.6 billion last July. Four months earlier, Basking Ridge, N.J.-based phone giant AT&T Corp. <T.N> sold $8 billion. Bonn-based Deutsche Telekom's expected sale follows huge bond sales, each at least $3.75 billion or the equivalent, in the last three months from four other phone giants, France Telecom <FTE.PA>, Britain's Vodafone AirTouch Plc <VOD.L>, Clifton, Miss.-based WorldCom Inc. <WCOM.O>, and the Netherlands' KPN Telecom NV <KPN.AS>. "Deutsche Telekom is aggressively expanding its technological capabilities and licensing," said Laura Kovach, a high-grade research associate at Boston-based Evergreen Funds. "With everyone trying to come to market at once it could take a toll on the company's ability to get through at a reasonable price." Deutsche Banc Alex. Brown, Goldman Sachs & Co. and Morgan Stanley, Dean Witter & Co. will manage the global bond sale, Deutsche Telekom's first. Sources said the sale may include about $5 billion of five-, 10- and 30-year bonds, an equivalent $1.5 billion of euro-denominated five- or 10-year notes, an equivalent $750 million of sterling-denominated bonds with maturities of five years or more, and an equivalent $750 million of yen- denominated five-year notes. After sources familiar with the sale confirmed the sale's expected size and timing, a Deutsche Telekom spokesman speaking by phone from New York said he had, "no knowledge of immediate bond issues," but did not elaborate. Sources said Deutsche Telekom's bonds, like those from earlier sales from Vodafone and KPN, are expected to include credit-sensitive coupons that will change if Moody's Investors Service or Standard & Poor's were to cut Deutsche Telekom's ratings by prescribed amounts. Moody's rates the existing long-term debt of Deutsche Telekom and its Deutsche Telekom Finance B.V. unit Aa2, its third highest rating, with a negative outlook. S&P rates it AA-minus, roughly one notch lower, with a negative outlook. Deutsche Telekom, which services 49 million access lines and has about 9 million mobile telecom subscribers, plans to use the sale proceeds for general corporate purposes. It has room to increase the size of its sale, having filed on June 8 with the U.S. Securities and Exchange Commission to sell up to $15 billion of debt securities. The bond sale comes in a U.S. corporate bond market that has since mid-May seen yields fall and investor demand for new bonds rise, on signs the U.S. economy is slowing enough to keep the Federal Reserve from raising interest rates much more. Since the Fed raised short-term rates May 16, its sixth increase in a year, companies other than agencies such as Fannie Mae <FNM.N> and Freddie Mac <FRE.N> have sold more than $48 billion of U.S. investment-grade bonds. "There is a lot of other debt coming right now and that could impact DT as well," said Kovach. KPN sold an equivalent $5.44 billion of bonds May 31 in what has been the year's largest corporate bond sale. (( U.S. Financial Markets Desk, (212) 859-1662 )) REUTERS * end of story *