Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] OT - Qwest bond swap
Date: Thu, 26 Dec 2002 18:55:21 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_0031_01C2AD10.57235310 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Nancy, In this particular case, my interest was peaked by one of the many daily = emails I get from several different services with market comments (and = varied perspectives). As I was not real motivated to short it, my = research did not go further than a review of a number of other news = articles. The most authoritative research source for something like this would = seem to be the SEC site / Edgar, where you would be able to read the = actual filings and specific details directly from the company to the = SEC. - ----- Original Message -----=20 From: NANCY POLCARO=20 To: canslim=20 Sent: Thursday, December 26, 2002 5:32 PM Subject: Re: [CANSLIM] OT - Qwest bond swap TOM-CAN YOU TELL ME WHERE YOU LOOK FOR INFO LIKE THIS ALL I CAN EVER = FIND 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 expenses goes up. Also noteworthy that only institutional holders = were involved, this bond swap could not be "offered" to the public = because Qwest's financials have not been audited, and in light of the = ongoing investigations. The FCC, while approving the entry into long = distance service, also expressed concerns over allegations that Qwest = bribed competitors into supporting their application by giving them = secret deals for access to their network, and intends to monitor Qwest = closely in the future. Several states 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 = bond -- 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 = denied a motion to block the exchange, saying the bondholders failed to = prove "irreparable harm." The bondholders later dropped their complaint. = Qwest said holders of $5.2 billion of Qwest Capital Funding Inc. debt = maturing 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 = not what I would call a successful offering, well under half accepted) = which carried interest rates between 5.875 percent and 7.9 percent. The = new debt carries rates between 13 percent and 14 percent." Tom Worley stkguru@bellsouth.net AIM: TexWorley - ------=_NextPart_000_0031_01C2AD10.57235310 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2800.1126" name=3DGENERATOR></HEAD> <BODY=20 style=3D"BORDER-RIGHT: medium none; BORDER-TOP: medium none; FONT: 10pt = verdana; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"=20 bgColor=3D#ffffff> <DIV><FONT face=3DArial size=3D3>Hi Nancy,</FONT></DIV> <DIV><FONT face=3DArial size=3D3></FONT> </DIV> <DIV><FONT face=3DArial size=3D3>In this particular case, my interest = was peaked by=20 one of the many daily emails I get from several different services with = market=20 comments (and varied perspectives). As I was not real motivated to short = it, my=20 research did not go further than a review of a number of other news=20 articles.</FONT></DIV> <DIV><FONT face=3DArial size=3D3></FONT> </DIV> <DIV><FONT face=3DArial size=3D3>The most authoritative research source = for=20 something like this would seem to be the SEC site / Edgar, where you = would be=20 able to read the actual filings and specific details directly from the = company=20 to the SEC.</FONT></DIV> <DIV> </DIV> <DIV style=3D"FONT: 10pt arial">----- Original Message -----=20 <DIV style=3D"BACKGROUND: #e4e4e4; font-color: black"><B>From:</B> <A=20 title=3DZILLAGIRL@msn.com href=3D"mailto:ZILLAGIRL@msn.com">NANCY = POLCARO</A> </DIV> <DIV><B>To:</B> <A title=3Dcanslim@lists.xmission.com=20 href=3D"mailto:canslim@lists.xmission.com">canslim</A> </DIV> <DIV><B>Sent:</B> Thursday, December 26, 2002 5:32 PM</DIV> <DIV><B>Subject:</B> Re: [CANSLIM] OT - Qwest bond swap</DIV></DIV> <DIV><BR></DIV> <DIV>TOM-CAN YOU TELL ME WHERE YOU LOOK FOR INFO LIKE THIS ALL I = CAN EVER=20 FIND IS A PRESS RELEASE IT SEEMS. THANKS NANCY</DIV> <DIV> </DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt Arial">----- Original Message -----</DIV> <DIV style=3D"BACKGROUND: #e4e4e4; FONT: 10pt Arial; COLOR: = black"><B>From:</B>=20 Tom Worley</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Sent:</B> Wednesday, December 25, = 2002 5:13=20 AM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>To:</B> CANSLIM</DIV> <DIV style=3D"FONT: 10pt Arial"><B>Subject:</B> [CANSLIM] OT - Qwest = bond=20 swap</DIV> <DIV> </DIV> <META content=3D"MSHTML 6.00.2800.1126" name=3DGENERATOR> <STYLE></STYLE> <DIV><FONT face=3DArial>Here are some more details. As I suspected, = the cost of=20 servicing the new debt will considerably exceed what the old bonds = were paying=20 because of the drastically higher "junk bond" rates. So total debt = goes down,=20 but expenses goes up. Also noteworthy that only institutional holders = were=20 involved, this bond swap could not be "offered" to the public because = Qwest's=20 financials have not been audited, and in light of the ongoing = investigations.=20 The FCC, while approving the entry into long distance service, also = expressed=20 concerns over allegations that Qwest bribed competitors into = supporting their=20 application by giving them secret deals for access to their network, = and=20 intends to monitor Qwest closely in the future. Several states are = also=20 investigating them and these deals.</FONT></DIV> <DIV><FONT face=3DArial></FONT> </DIV> <DIV><FONT face=3DArial>Again from Yahoo: (formatting and marking is=20 mine)</FONT></DIV> <DIV><FONT face=3DArial>"</FONT>=20 <P><FONT face=3DArial>Holders of about $4 billion of Qwest bonds went = to court=20 to challenge the exchange offer, which Qwest announced on Nov. 20. = </FONT> <P><FONT face=3DArial>They said Qwest was forcing them to exchange = their bonds=20 at a <EM>fraction of face value -- between 52.5 percent and 82.5 = percent</EM>,=20 depending on the bond -- or else fall lower in the pecking order for = repayment=20 in case Qwest went broke. </FONT> <P><FONT face=3DArial>Last week, Judge Denny Chin for the U.S. = District Court in=20 Manhattan denied a motion to block the exchange, saying the = bondholders failed=20 to prove "irreparable harm." The bondholders later dropped their = complaint.=20 </FONT> <P><FONT face=3DArial>Qwest said holders of <STRONG>$5.2 = billion</STRONG> of=20 Qwest Capital Funding Inc. debt maturing between 2004 and 2031 = exchanged it=20 for <STRONG>$3.3 billion</STRONG> of more senior debt issued by Qwest = Services=20 Corp. maturing in 2007, 2010 or 2014. </FONT> <P><FONT face=3DArial><STRONG>Qwest had offered to exchange up to = $12.9 billion=20 of the old bonds</STRONG>,(<FONT color=3D#ff0000>so not what I would = call a=20 successful offering, well under half accepted)</FONT> which = carried=20 interest rates between <STRONG>5.875 percent and 7.9 percent</STRONG>. = The new=20 debt carries rates between <STRONG>13 percent and 14=20 percent</STRONG>."</FONT></P> <P><FONT face=3DArial></FONT> </P></DIV> <DIV><FONT face=3DArial>Tom Worley<BR></FONT><A=20 href=3D"mailto:stkguru@bellsouth.net"><FONT=20 face=3DArial>stkguru@bellsouth.net</FONT></A><BR><FONT = face=3DArial>AIM:=20 TexWorley</FONT></DIV></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0031_01C2AD10.57235310-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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Previous Article (by Author): [CANSLIM] Big Money AGAIN, oh dear! Hay look Andy! "John Calkins"
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