NEW YORK-ICG Communications Inc. was expected to place privately last week $100 million in senior unsecured discount notes and $100 million in exchangeable preferred stock.
ICG, based in Englewood, Colo., is a diversified telecommunications company whose businesses include satellite telecommunications, competitive local exchange carrier services and Very Small Aperture Terminal private data network operations.
ICG Holdings Inc., a subsidiary of ICG Communications, is offering the two securities issues privately through Morgan Stanley & Co. Inc., New York. The senior unsecured discount notes mature in 2007 and will pay no interest in cash for the first five years.
The preferred stock must be redeemed in 2008. At the option of ICG Holdings, the stock may be exchanged into unsecured subordinated exchange debentures. Dividends will be cumulative from the date of issue of the preferred stock. They will be paid in cash unless, during the first five years they are outstanding, ICG Holdings opts instead to pay the dividends in the form of additional shares of preferred stock.
Proceeds of the note and stock sales will be used for general purposes, including funding the expansion of ICG’s network by means that include acquisitions, and also to improve the near-term operating and financial flexibility of the firm.
