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Issue #34 - October 18-23, 2002 |
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Gilat Begins Restructuring DebtHughes Reports Third Quarter 2002 Results - DIRECTV U.S. Revenues Increase 19% While EBITDA Reaches $196 MillionLoral Completes Share ExchangeSirius Trades Debt for Equity - Adds Funds Through Sale of New Stock |
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Gilat Begins Restructuring DebtGilat Satellite Networks and its major lenders and bondholders have reached general agreement on the guidelines regarding its debt restructuring. The parties have agreed to cooperate in crafting a detailed restructuring plan within a 30-day timetable. Gilat filed Wednesday an application with the Israeli District Court in Tel Aviv to commence the approval for the restructuring plan and a stay of action by the bondholders. Gilat's bond debt involves $350 million, 4.25% convertible subordinated notes due in 2005. Gilat said the guidelines include converting part of the bonds into common stock and options, and placing the remainder into new long-term convertible bonds with a grace period for interest payments. "We expect the debt level will be significantly reduced by approximately $300 million by converting a substantial amount of debt to equity or options to acquire equity in the company," said Yoel Gat, Gilat chairman and CEO. "Post restructuring financing costs are expected to be relatively minimal (less than US $ 5mn cash per year) for the first few years," he added. Concerns about the company's financial stability cost Gilat a rural telecommunications contract in Colombia earlier this year, a contract award that Gilat is appealing. Hughes Reports Third Quarter 2002 Results - DIRECTV U.S. Revenues Increase 19% While EBITDA Reaches $196 MillionHughes Reports Third Quarter 2002 Results - DIRECTV U.S. Revenues Increase 19% While EBITDA Reaches $196 Million Loral Completes Share ExchangeLoral has completed its exchange of $1.92 in cash and 6.54 shares of Loral common stock for each share of its preferred stock. Under the offer, roughly 4.34 million shares of its 6-percent Series C preferred and approximately 2.82 million shares of its 6 percent Series D preferred stock were tendered and accepted for exchange. To complete the exchange, Loral is paying $13.7 million and issuing 46.8 million common shares, while retiring preferred shares representing $358 million of mandatory redemption obligations and $21.5 million in annual dividends. Sirius Trades Debt for Equity - Adds Funds Through Sale of New StockSirius Satellite Radio signed an agreement with debt holders to convert most of its $700 million in debt and all of its $525 million of preferred stock into common stock. In addition, the company will generate $200 million from the sale of newly-issued common stock to Oppenheimer Global Funds-$150 million, affiliates of Apollo Management, L.P.-$25 million, and The Blackstone Group L.P. -$25 million. |
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