NEW YORK-Standard & Poor’s placed wireless operator Horizon PCS Inc. on CreditWatch with negative implications due to concerns about the outcome of Horizon’s negotiations with its bank creditors over covenant amendments.
“Horizon has until June 28, 2002, to resolve a waiver from its lending group for failing to comply with the EBITDA covenant for the first quarter of 2002,” said Michael Tsao, credit analyst at S&P. “Horizon said the covenant violation was due to the company incurring greater expenses due to higher-than-anticipated subscriber additions.”
Horizon is a Sprint PCS affiliate serving approximately 222,700 subscribers in 12 states.
