Williams Communications to Issue $1.4 Billion of Notes Due 2004
Erica Berardi
03/15/01 - 03:56 PM EST
Williams Communications (WCG) plans to issue $1.4 billion of structured notes due 2004 and will use the proceeds for capital spending on telecom assets.
The company, a provider of voice, data and Internet services to communications companies, expects to complete the private placement sale by the end of the month. Williams Communications' parent
Williams Cos.(WMB) will issue stock to the buyers of the notes if Williams Communications defaults.
Earlier this month,
Citicorp USA and
Lehman Commercial Paper agreed to underwrite an additional $950 million of
loans for Williams Communications, bringing the communication services concern's total senior credit facilities to $2 billion.
In February, Williams Communications, which is based in Tulsa, Okla., said it would
issue 24.3 million additional shares to Williams. The parent now owns 420 million shares, or 86% of the unit's stock, up from 85% before the transaction.
In recent
New York Stock Exchange trading, shares of Williams Communications gained 5 cents, or 0.4%, to $11.30, while Williams Cos. rose $1.26, or 3%, to $43.06.
