Jan 13, 2003 : Broadwing Explores Broadband Unit Sale

📅 January 13, 2003 - Communications carrier Broadwing Inc. (Broadwing.com), which has been recently undergoing restructuring efforts, is reportedly considering the sale of its high-speed communications unit, and will take a fourth-quarter impairment charge of $2 billion.

Broadwing also secured a financing commitment of $350 million, an increase from the $200 million the company announced in December. The company says it will use the increased funding, arranged by Goldman Sachs & Co., to pay down bank debt.
The company is discussing amendments to its credit facility, including changes to its 2004 maturity date, and hopes to complete the deal by the end of the first quarter. Broadwing requires bank syndicate approval of an amendment is necessary for the company to meet its 2003 liquidity requirements.
Broadwing is working with Lehman Brothers and Banc of America Securities to consider alternatives, including the sale of its Broadwing Communications high-speed communications unit. The company says it is considering inquiries it has received regarding the unit, which was its largest revenue-generator for the nine months ending Sept. 30 and supplied $834.4 million of the $1.65 billion total.
The $2 billion charge would reportedly be non-cash, said the company, which reaffirmed its 2003 operating forecast, predicting EBITDA of $640 million and revenue of $2.15 billion.