Corecomm extends recapitalization exchange

New York, March 8 - CoreComm Ltd. and its formerly wholly-owned subsidiary CoreComm Holdco, Inc. said they extended their exchange offer for their recapitalization to 5 p.m. ET on April 8 from midnight ET on March 8. The companies said they were extending the exchange because the Securities and Exchange Commission is still reviewing the registration statement.

As previously announced, the New York City and Bala Cynwyd, Pa.-based communications company is offering:

--For holders of CoreComm common stock, each share will be exchanged for 1/116.7 of a share of the common stock of the reorganized company, called CoreComm Holdco;

--For holders of CoreComm's 6% convertible subordinated notes due 2006, each $1,000 principal amount will be exchanged for 3.0349 shares of the new company and $30 in cash, the cash being set equal to the unpaid Oct. 1, 2001 interest payment;

CoreComm is tendering for all the outstanding common stock and convertibles.

Among other conditions, the exchange is subject to at least 90% of the common stock being tendered.

On completion of the exchange, holders of the old common stock will own 13% of the new company, taking into account exercise of warrants.

CoreComm in December exchanged $160 million of its convertibles - of which it originally issued $175 million - for about 5% of its stock and $5 million in cash.

It also exchanged its $10 million of 10.75% unsecured convertible PIK notes due 2011, $16.1 million 10.75% senior unsecured convertible PIK notes due 2010, $105.7 million senior unsecured notes due Sept. 29, 2003 and $300 million of preferred stock for the other 82% of its equity.

After the recapitalization, CoreComm Holdco's debt will be its $156.1 million credit facility, $15.8 million in senior convertible notes and $11.5 million in capital leases.

The company also said it expects to generate positive EBITDA in early 2002 and become free cash flow positive in late 2002.

Information agent for the exchange offer is D.F. King & Co., Inc., banks and brokers call collect 212 269-5550, others call 800 848-2998.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.