Go to Jeff Salisbury LWGate Home Page.From: "NANCY POLCARO" <ZILLAGIRL@msn.com>
Subject: Re: [CANSLIM] OT - Qwest bond swap
Date: Thu, 26 Dec 2002 14:32:13 -0800
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- ------=_NextPart_001_0004_01C2ACEB.952DE460 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable TOM-CAN YOU TELL ME WHERE YOU LOOK FOR INFO LIKE THIS ALL I CAN EVER FIN= D IS A PRESS RELEASE IT SEEMS. THANKS NANCY - ----- Original Message ----- From: Tom Worley Sent: Wednesday, December 25, 2002 5:13 AM To: CANSLIM Subject: [CANSLIM] OT - Qwest bond swap Here are some more details. As I suspected, the cost of servicing the new= debt will considerably exceed what the old bonds were paying because of = the drastically higher "junk bond" rates. So total debt goes down, but ex= penses goes up. Also noteworthy that only institutional holders were invo= lved, this bond swap could not be "offered" to the public because Qwest's= financials have not been audited, and in light of the ongoing investigat= ions. The FCC, while approving the entry into long distance service, also= expressed concerns over allegations that Qwest bribed competitors into s= upporting their application by giving them secret deals for access to the= ir network, and intends to monitor Qwest closely in the future. Several s= tates are also investigating them and these deals. Again from Yahoo: (formatting and marking is mine) " =20 Holders of about $4 billion of Qwest bonds went to court to challenge the= exchange offer, which Qwest announced on Nov. 20. =20 They said Qwest was forcing them to exchange their bonds at a fraction of= face value -- between 52.5 percent and 82.5 percent, depending on the bo= nd -- or else fall lower in the pecking order for repayment in case Qwest= went broke. =20 Last week, Judge Denny Chin for the U.S. District Court in Manhattan deni= ed a motion to block the exchange, saying the bondholders failed to prove= "irreparable harm." The bondholders later dropped their complaint. =20 Qwest said holders of $5.2 billion of Qwest Capital Funding Inc. debt mat= uring between 2004 and 2031 exchanged it for $3.3 billion of more senior = debt issued by Qwest Services Corp. maturing in 2007, 2010 or 2014. =20 Qwest had offered to exchange up to $12.9 billion of the old bonds,(so no= t what I would call a successful offering, well under half accepted) whic= h carried interest rates between 5.875 percent and 7.9 percent. The new d= ebt carries rates between 13 percent and 14 percent." Tom Worley stkguru@bellsouth.net AIM: TexWorley - ------=_NextPart_001_0004_01C2ACEB.952DE460 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <HTML><BODY STYLE=3D"font:10pt verdana; border:none;"><DIV>TOM-CAN YOU TE= LL ME WHERE YOU LOOK FOR INFO LIKE THIS ALL I CAN EVER FIND IS A PR= ESS RELEASE IT SEEMS. THANKS NANCY</DIV> <DIV> </DIV> <BLOCKQU= OTE style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BOR= DER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt= Arial">----- Original Message -----</DIV> <DIV style=3D"BACKGROUND: #e4e= 4e4; FONT: 10pt Arial; COLOR: black"><B>From:</B> Tom Worley</DIV> <DIV s= tyle=3D"FONT: 10pt Arial"><B>Sent:</B> Wednesday, December 25, 2002 5:13 = AM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> CANSLIM</DIV> <DIV st= yle=3D"FONT: 10pt Arial"><B>Subject:</B> [CANSLIM] OT - Qwest bond swap</= DIV> <DIV> </DIV> <META content=3D"MSHTML 6.00.2800.1126" name=3DGEN= ERATOR> <STYLE></STYLE> <DIV><FONT face=3DArial>Here are some more detai= ls. As I suspected, the cost of servicing the new debt will considerably = exceed what the old bonds were paying because of the drastically higher "= junk bond" rates. So total debt goes down, but expenses goes up. Also not= eworthy that only institutional holders were involved, this bond swap cou= ld not be "offered" to the public because Qwest's financials have not bee= n audited, and in light of the ongoing investigations. The FCC, while app= roving the entry into long distance service, also expressed concerns over= allegations that Qwest bribed competitors into supporting their applicat= ion by giving them secret deals for access to their network, and intends = to monitor Qwest closely in the future. Several states are also investiga= ting them and these deals.</FONT></DIV> <DIV><FONT face=3DArial></FONT>&n= bsp;</DIV> <DIV><FONT face=3DArial>Again from Yahoo: (formatting and mark= ing is mine)</FONT></DIV> <DIV><FONT face=3DArial>"</FONT> <P><FONT face= =3DArial>Holders of about $4 billion of Qwest bonds went to court to chal= lenge the exchange offer, which Qwest announced on Nov. 20. </FONT> <P><F= ONT face=3DArial>They said Qwest was forcing them to exchange their bonds= at a <EM>fraction of face value -- between 52.5 percent and 82.5 percent= </EM>, depending on the bond -- or else fall lower in the pecking order f= or repayment in case Qwest went broke. </FONT> <P><FONT face=3DArial>Last= week, Judge Denny Chin for the U.S. District Court in Manhattan denied a= motion to block the exchange, saying the bondholders failed to prove "ir= reparable harm." The bondholders later dropped their complaint. </FONT> <= P><FONT face=3DArial>Qwest said holders of <STRONG>$5.2 billion</STRONG> = of Qwest Capital Funding Inc. debt maturing between 2004 and 2031 exchang= ed it for <STRONG>$3.3 billion</STRONG> of more senior debt issued by Qwe= st Services Corp. maturing in 2007, 2010 or 2014. </FONT> <P><FONT face=3D= Arial><STRONG>Qwest had offered to exchange up to $12.9 billion of the ol= d bonds</STRONG>,(<FONT color=3D#ff0000>so not what I would call a succes= sful offering, well under half accepted)</FONT> which carried intere= st rates between <STRONG>5.875 percent and 7.9 percent</STRONG>. The new = debt carries rates between <STRONG>13 percent and 14 percent</STRONG>."</= FONT></P> <P><FONT face=3DArial></FONT> </P></DIV> <DIV><FONT face=3D= Arial>Tom Worley<BR></FONT><A href=3D"mailto:stkguru@bellsouth.net"><FONT= face=3DArial>stkguru@bellsouth.net</FONT></A><BR><FONT face=3DArial>AIM:= TexWorley</FONT></DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_001_0004_01C2ACEB.952DE460-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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