Broadwing Completes $2.1 Billion Financing Plan.Business Editors CINCINNATI--(BUSINESS WIRE)--Jan. 14, 2000 Broadwing Inc. (NYSE NYSE See: New York Stock Exchange :BRW BRW Business Review Weekly (business magazine; Melbourne, Victoria, Australia) BRW Business Report Writer BRW Barrow, AK, USA - Barrow (Airport Code) BRW Business Requirement Worksheet ), a data and Internet-centric communications growth company with a premier, next-generation network, announced today that it has completed syndication of and increased its existing credit facility to $2.1 billion. Kevin Mooney, Broadwing executive vice president and chief financial officer, said "This financing plan will enable Broadwing to execute its strategy for rapid growth and improving EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become margins by focusing on our exciting data and Internet opportunities and by continuing to provide customers with the very best in technology and customer service." A syndicate of 24 banks and other financial lenders led by Citibank and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , with co-agents PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank, Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. and Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. are providing funding that includes revolving, term and other short-term credit facilities for Broadwing. The average interest rate for all facilities is approximately 2 percentage points above the London Inter-Bank Offered Rate (LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ). The credit facilities will be used to develop Broadwing's local and national communications networks including new data centers, for other capital investments, to retire existing term debt, for working capital and for other corporate purposes. Broadwing increased the size of the facility from $1.8 billion to $2.1 billion because of favorable terms and the refunding of certain Broadwing securities. The company said that it has received requests for redemption from holders of approximately $404 million of its 9% bonds of which there were approximately $450 million outstanding. IXC Communications issued the 9% bonds prior to Cincinnati Bell's merger with IXC. These bonds included a provision that allowed holders to redeem them during a specified period following a change of control at IXC. The bonds not redeemed will remain outstanding under their existing terms and conditions. About Broadwing Broadwing Inc. (NYSE:BRW) is an integrated communications powerhouse delivering voice, data and Internet solutions to a variety of customers nationwide. Focused on customer service combined with a premier next-generation fiber network and award winning IP backbone, Broadwing's reliable high-bandwidth data and Internet capabilities give businesses a competitive advantage. Headquartered in Cincinnati, Ohio, with 5,500 employees in 38 cities, Broadwing can be found on the World Wide Web at broadwing.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion