MEXICO CITY-Grupo Iusacell has announced plans to obtain about $60 million in equity
infusions from its two major shareholders, Bell Atlantic Corp. and the Peralta Group, during the next several
months.
“The capital will fund additional analog and [Code Division Multiple Access] network investments
and handset purchases needed to support higher than expected cellular net additions, growing demand for digital
(wireless) services and network expansion to support long-distance opportunities,” the company said.
The
shareholder equity infusion will be implemented by two draw-downs from a $150 million Bell Atlantic subordinated
debenture facility, of which Grupo Iusacell tapped another $71.5 million this fall.
Bell Atlantic subsidiaries own 47
percent of the Mexican carrier’s stock.
After each new draw-down, Bell Atlantic debentures will be converted into
Grupo Iusacell Series A stock at 70 cents per share.
Under an agreement reached in August, the Peralta Group must
buy half of these shares from Bell Atlantic at the conversion price of 70 cents each.
Bell Atlantic announced it
would invest in the Mexican telecommunications operator in October 1993.
