Omnipoint in Expanded Financing Negotiations; Current Cash, Cash Equivalents and Vendor Financing Exceed $800 Million
PR Newswire - October 07, 1998 09:05
BETHESDA, Md., Oct. 7 /PRNewswire/ -- Omnipoint Corporation today announced that it has been in discussions with its primary vendors, Ericsson, Inc. and Nortel (Northern Telecom, Inc.), for these vendors to provide additional financing for the Company. The Company expects that these negotiations will result in making available to the Company more than $200,000,000 in additional financing, bringing the Company's total liquidity to more than $1 billion.
Douglas G. Smith, President and Chief Executive Officer of the Company, commented, "We understand the importance of assuring that the Company has adequate capital for its operating and capital expenditure requirements. The additional financing currently being negotiated with our vendors will add to the Company's available resources. As of September 30, 1998, these available resources included approximately $360,000,000 of cash, cash equivalents, escrows, and unused commitments from lenders that are immediately available for borrowing, based on past purchases, which can be used for any purpose. Additionally, the company has commitments from its vendors for advances for future expenditures of approximately $440,000,000. Thus, the anticipated new financing would result in the Company having more than $1 billion in available capital.
"The Company is also taking additional steps to assure its ability to pursue its business goals in the current financial market conditions," Mr. Smith continued. "The Company is prudently deferring certain discretionary expansion opportunities and other expenditures. In addition, we have been in expanded discussions over the last several weeks with a number of newly interested strategic investors regarding transactions that reflect the inherent long-term value of the Company."
Founded in 1987, Omnipoint Corporation is a leader in commercializing PCS. Omnipoint currently provides advanced wireless communications services in much of New York, New Jersey, Connecticut, eastern Pennsylvania, Delaware, Massachusetts, New Hampshire, Rhode Island and southern Florida; it intends to provide those services in additional areas. The Company also develops technology and equipment for PCS and wireless local loop. The Company's stock is traded on the Nasdaq National Market. Its trading symbol is OMPT.
Omnipoint is a member of the North American GSM Alliance, a group of North America's leading digital wireless Personal Communication Services companies. Using Global System for Mobile (GSM) communications, Alliance companies provide superior voice clarity, unparalleled security and leading-edge wireless voice, data and fax features for customers, whether at home, away or abroad. Other GSM Alliance members include: Aerial Communications, Inc.; Airadigm Communications, Inc.; BellSouth Mobility DCS; Conestoga Wireless Company; Cook Inlet PCS; DIGIPH PCS; Microcell Telecommunications Inc.; NPI Wireless; Pacific Bell Mobile Services; Powertel, Inc.; Western Wireless Corp.; and Wireless 2000 PCS.
Except for historical information contained herein, the matters discussed and the statements made in this release concerning Omnipoint's future prospects are "forward-looking statements" under the Federal securities laws that involve risks and uncertainties. There can be no assurance that future results will be achieved, and actual results could differ materially from the forecast and estimates. Important factors that could cause actual results to differ materially include, but are not limited to, Omnipoint's limited operating history, including a history of losses and the uncertainty of future operating results, dependence upon cash flow from its subsidiaries, high leverage, debt service requirements and restrictive covenants related to its outstanding Senior Notes, the emerging market for PCS service, the continued buildout of Omnipoint PCS markets, significant capital requirements, and its dependence upon key employees. Omnipoint's future results may be impacted by other risk factors listed in its Registration Statement filed on Form S-3 on June 30, 1998, and other factors listed from time to time in its SEC reports, including, but not limited to, the report on Form 10-K for the year ended December 31, 1997.
SOURCE Omnipoint Corporation
/CONTACT: Laura Knight, Investor Relations of Omnipoint Corporation,
301-951-2517, or lknight@omnipoint.com/
/Web site: omnipoint.com |
