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

To: Alejandro who wrote (4904)	4/2/1998 11:40:00 AM
From: silicon warrior	Respond to of 12468

obviously the company needs capital for its buildout over the next 2+ years. This lease deal may simply be a way of reducing its net cost of funds, depending on the terms. The recent debt deals, while favorable, were not cheap compared to what some other companies pay. Moreover, one never knows what the future brings. It is prudent to avail oneself of asset-based financing while it is available. On the other hand, I hope it's a war chest for artt, only because I own a decent position in it. I would think that the best acquisition at this time would use stock, despite its dilutive effect on us. BTW, this is wcii leasing from the bank, i assume. Probabbly formally a sale/leaseback. Since wcii has no earnings, it has no present value in the depreciation of the switches. The bank can use it to offset the taxability of other income. It should be a win/win deal