BETHESDA, Md.-Omnipoint Corp. said it has been in discussions with its primary vendors, Ericsson Inc. and Northern Telecom Inc., to provide the personal communications services company with additional financing.
Omnipoint expects the negotiations to make more than $200 million in additional financing available, bringing the company’s total liquidity to more than $1 billion. As of Sept. 30, Omnipoint’s available resources included about $350 million of cash, cash equivalents, escrows and unused commitments from lenders, plus the company has commitments of approximately $440 million from its vendors for advances for future expenditures.
“[Omnipoint] is also taking additional steps to assure its ability to pursue its business goals in the current financial market conditions,” said Douglas Smith, president and chief executive officer of Omnipoint. “The company is prudently deferring certain discretionary expansion opportunities and other expenditures. In addition, we have been in expanded discussions over the last several weeks with a number of newly interested strategic investors regarding transactions that reflect the inherent long-term value of the company,” said Smith.
