WinStar Communications Inc. signed an agreement with two investment banks to raise $175 million through an institutional private placement rule.
The company plans to use proceeds from the offering-expected to close Dec. 22-to fund acquisitions and for working capital and general corporate purposes. The Senior Cumulative Exchangeable Preferred Stock is not convertible and there is no common equity associated with this offering. It carries an annual dividend rate of 14.25 percent and must be redeemed by the company in 2007.
