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Microcap & Penny Stocks : Rande Is. . .FISHING. . [under $1.50] -- Ignore unavailable to you. Want to Upgrade?

To: jmhollen who wrote (3467)	10/22/2001 12:57:04 PM
From: Trumptown	Respond to of 4766

RCNC may pop on debt news...so far not much happening... RCN Spends $161 Million Cash to Buy Back Own Debt PRINCETON, N.J. (Reuters) - Telecommunications and data services provider RCN Corp. (Nasdaq:RCNC - news) said on Monday it will spend $161 million of cash to buy back about $593 million of its own debt at a fraction of its face value. The Princeton, New Jersey-based company is one of a slew of telecommunications companies trying to pare its debt burden. Many telecoms have suffered this year because the shakeout in the technology sector, together with the slowing U.S. economy, crimped demand and forced many customers to disconnect services. RCN had been prepared to spend up to $250 million of cash to buy back up to $1.07 billion of debt. It said it will give its RCN Finance unit the cash needed to buy back the debt, at between 19 and 35 cents per $1 of face value. Bondholders had offered to sell back $784 million of the debt, it said. As of June 30, RCN said it had $271 million in cash and temporary cash investments, $789 million of short-term investments, and $2.32 billion of long-term debt, according to a filing with the Securities and Exchange Commission (news - web sites). Other telecoms trying this year to trim debt include Broomfield, Colorado-based Level 3 Communications Inc. (Nasdaq:LVLT - news), which has offered to buy back up to $2.86 billion; Nextel Communications Inc. (Nasdaq:NXTL - news); and XO Communications Inc. (Nasdaq:XOXO - news). RCN shares traded Monday on the Nasdaq at $3.02, down 8 cents. They have fallen 52 percent this year, from $6.31. DUTCH AUCTION Moody's Investors Service said last month it may cut its ''Caa2'' rating, its fourth-lowest grade, for RCN's senior unsecured debt. In RCN's ``modified Dutch auction,'' which ended Friday, successful tendering holders will all receive the highest price that RCN was willing to pay. RCN said it agreed to buy back: -- $43 million of 10 percent senior notes due in 2008, at $350 per $1,000 principal; -- $120 million of 10.125 percent senior notes due in 2010, at $360 per $1,000 principal; -- $140 million of 9.8 percent senior discount notes due in 2008, at $250 per $1,000 principal; -- $79 million of 11 percent senior discount notes due in 2008, at $190 per $1,000 principal; and -- $211 million of 11.125 percent senior discount notes due in 2007, at $250 per $1,000 principal. The principal amounts outstanding of the respective issues before the buybacks were $204 million, $352 million, $531 million, $224 million, and $568 million, RCN said. Morgan Stanley, J.P. Morgan, and Greenhill & Co. arranged the buyback, RCN said. dailynews.yahoo.com SR