NEW YORK-WinStar Communications Inc. announced an offering of $450 million of debt securities in a 144A institutional private placement. There is no equity associated with the offering.
The offer includes three tranches of notes including $100 million of senior notes due 2005, $150 million of senior subordinated notes due 2007 and $200 million of guaranteed senior secured notes of the company’s subsidiary, WinStar Equipment Corp.
The net proceeds of the senior notes and senior subordinated notes will be used for general corporate and working capital purposes.
The proceeds from the guaranteed secured notes will be used to purchase equipment, inventory and related items including switches and 38 GHz radio equipment.
The proceeds of the offering, along with existing company resources, are expected to fund New York-based WinStar’s business plan for the next 30 to 36 months, the company noted.
