Broadwing Inc. announces $200-million commitment from Goldman Sachs

Dec. 11, 2002
December 11, 2002--Broadwing Inc. has signed an agreement with investment funds managed by Goldman, Sachs & Co. to provide $200 million in financing to Broadwing in the form of Senior Subordinated Discount Notes due in 2009.

Broadwing Inc. has signed an agreement with investment funds managed by Goldman, Sachs & Co. to provide $200 million in financing to Broadwing in the form of Senior Subordinated Discount Notes due in 2009.

"This financing will be used to pay down bank debt as part of Broadwing's five-point plan to strengthen the company's financial position," explains Kevin Mooney, Broadwing's chief executive officer. "Raising new sources of capital and amending the maturities of our existing credit facility are key elements of the plan. Having achieved a positive free cash flow position for Broadwing Inc. in the third quarter, this financing represents another solid step in executing our plan."

The commitment of financing, which the company expects to close during the first quarter of 2003, is contingent upon Broadwing successfully renegotiating its current bank credit facility and the satisfaction of other customary closing conditions. To this end, Broadwing has engaged Banc of America Securities and Lehman Brothers to serve as financial co-advisors to the company. The firms will assist Broadwing with its analysis of new sources of capital, address certain amendments to Broadwing's credit facility, review strategies for building shareholder value, and analyze steps needed to de-leverage the company.

In October, Mooney and his management team began executing on a five-point plan designed to build long-term shareholder value. Beyond strengthening the company's financial position, the plan involves a focus on maintaining the strength and stability of its Cincinnati Bell businesses, restructuring its Broadwing Communications unit to reduce expenses and improve cash flow by approximately $200 million annually, continuing to review strategic alternatives to enhance shareholder value, and reducing the company's debt balances over time.

Broadwing remains on track to achieve its 2002 financial projections, which include revenue of $2.15 billion, EBITDA of $640 million, and capital expenditures of $190 million. The company also expects to remain in compliance with its existing financial covenants package throughout 2003.

Broadwing Inc. (Cincinnati, OH) is an integrated communications company comprised of Broadwing Communications and Cincinnati Bell. For more information, visit www.broadwing.com.

Sponsored Recommendations

How AI is driving new thinking in the optical industry

Sept. 30, 2024
Join us for an interactive roundtable webinar highlighting the results of an Endeavor Business Media survey to identify how optical technologies can support AI workflows by balancing...

On Topic: Optical Players Race to Stay Pace With the AI Revolution

Sept. 18, 2024
The optical industry is moving fast with new approaches to satisfying the ever-growing demand from hyperscalers, which are balancing growing bandwidth demands with power efficiency...

Advancing Data Center Interconnection

July 25, 2024
Data Center Interconnect (DCI) solutions provide physical or virtual network connections between remote data center locations. Connecting geographically dispersed data centers...

The Pluggable Transceiver Revolution

May 30, 2024
Discover the revolution of pluggable transceivers in our upcoming webinar, where we delve into the advancements propelling 400G and 800G coherent optics. Learn how these innovations...