Feb 15, 2002 : Qwest Taps $4 Billion Credit Line
📅 - Qwest Communications International Inc. onThursday tapped into a $4 billion line of credit, four times the amountexpected by Wall Street, to pay down its $3.2 billion in short-term debt.
Denver-based Qwest, a major phone company in 14 states, also reduced itscapital spending budget and said it would consider other long-termrefinancing options. Its outstanding net debt remains approximately $24.9billion, which the company does not expect to increase.
The company says it will use the remaining $800 million to give itflexibility in the capital markets, and still expects to turn free cash flowpositive in the second quarter of 2002.
Neither the draw down nor any refinancing options are expected to affectQwest's objective of strengthening its balance sheet by reducing debt by$1.5 to $2 billion, the company stated. On Feb. 5, Qwest filed with theSecurities and Exchange Commission a shelf registration statement coveringdebt and equity securities. The company is looking at other ways to reducedebt, including a combination of sales of securities or assets.
"These steps address the short-term commercial paper market liquidity needswhile allowing us to focus on executing on our strategy to grow ourbusiness, strengthen our balance sheet and generate free cash flow," saidJoseph P. Nacchio, Qwest chairman and CEO.
Qwest will host a conference call for investors, media and other interestedpersons today at 5:15 p.m. (EST) with Joseph P. Nacchio, Qwest chairman andCEO, Robin R. Szeliga, Qwest executive vice president of finance and CFO.The call may be heard on the Web at qwest.com/about/investor/meetings.
Denver-based Qwest, a major phone company in 14 states, also reduced itscapital spending budget and said it would consider other long-termrefinancing options. Its outstanding net debt remains approximately $24.9billion, which the company does not expect to increase.
The company says it will use the remaining $800 million to give itflexibility in the capital markets, and still expects to turn free cash flowpositive in the second quarter of 2002.
Neither the draw down nor any refinancing options are expected to affectQwest's objective of strengthening its balance sheet by reducing debt by$1.5 to $2 billion, the company stated. On Feb. 5, Qwest filed with theSecurities and Exchange Commission a shelf registration statement coveringdebt and equity securities. The company is looking at other ways to reducedebt, including a combination of sales of securities or assets.
"These steps address the short-term commercial paper market liquidity needswhile allowing us to focus on executing on our strategy to grow ourbusiness, strengthen our balance sheet and generate free cash flow," saidJoseph P. Nacchio, Qwest chairman and CEO.
Qwest will host a conference call for investors, media and other interestedpersons today at 5:15 p.m. (EST) with Joseph P. Nacchio, Qwest chairman andCEO, Robin R. Szeliga, Qwest executive vice president of finance and CFO.The call may be heard on the Web at qwest.com/about/investor/meetings.
Reads: 2161 | Category: General | Source: TheWHIR : Web Host Industry ReviewsURL source: http://www.thewhir.com/marketwatch/qwe021502.cfm
Company: qwest [qwest.com -> lumen.com]
Want to add a website news or press release ? Just do it, it's free! Use add web hosting news!