Cablevision Not to Proceed With Convertible Preferred Stock Offering.Business Editors BETHPAGE, NY--(BUSINESS WIRE)--Oct. 5, 2001 Cablevision Systems Corporation (NYSE NYSE See: New York Stock Exchange :CVC See CSC. ) announced today that due to general market conditions, it has cancelled plans to sell up to $1 billion of its convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". convertible into Cablevision NY Group Class A common stock pursuant to a registration statement initially filed with the Securities and Exchange Commission on May 30, 2001. Under a prior agreement with AT&T, AT&T has the right, and is expected to exercise such right, to sell up to $1 billion of Cablevision NY Group Class A common stock under that registration statement. In addition, Cablevision has agreed that AT&T may monetize up to an additional $1 billion of Cablevision NY Group Class A common stock in a transaction using a mandatorily exchangeable trust security. The company is presently evaluating the financing requirements of Cablevision NY Group for 2002 and the options available to it. Those options could include: the sale of assets, borrowing under its bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , reducing capital expenditures and other investment spending and/or the issuance of debt, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and/or equity securities. AT&T also has registration rights for the Rainbow Media Group tracking stock that it owns and Cablevision has agreed to file a registration statement following AT&T's sale of its Cablevision NY Group common stock for the sale of some or all of AT&T's Rainbow Media Group tracking stock. COMPANY DESCRIPTION Cablevision Systems Corporation is one of the nation's leading telecommunications and entertainment companies. The Company consists of the Cablevision NY Group (NYSE: CVC) and the Rainbow Media Group (NYSE: RMG RMG Roularta Media Group RMG RiskMetrics Group, Inc. RMG Revenu Minimum Garanti (French: Guaranteed Minimum Income) RMG Risk Management Group RMG Ready Made Garment RMG Raw Materials Group (mining industry) ). This release contains statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industry in which it operates and the factors described in the Company's registration statement on Form S-3, filed on August 8, 2001, as amended, including the section entitled "Risk Factors" contained therein. The Company disclaims any obligation to update the forward-looking statements contained herein. This release does not constitute an offer of any securities for sale. |
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