Corning to reduce debt with $366.75 million stock offering

New York, July 23 - Corning Inc. said it will use proceeds from its sale of 45 million shares at $8.15 per share to reduce debt.

The $366.75 million of stock was sold under the company's shelf registration via Goldman, Sachs & Co.

The Corning, N.Y. technology company said it will use proceeds to reduce debt through open market repurchases, public tender offers or other methods, and for general corporate purposes.

"A major part of our strategy for protecting the company's financial health has been to reduce debt levels," said James B. Flaws, Corning's vice chairman and chief financial officer, in a news release.

"Since 2001, we have retired more than $2 billion in debt obligations. With the proceeds from this offering, and our cash balances, we believe that we have adequate liquidity to fund our debt reduction objectives."

World Airways starts exchange for convertibles

New York, July 23 - World Airways, Inc. announced an exchange offer to extend the maturity of its 8% convertible senior subordinated debentures due 2004.

The company is offering new 8% convertible senior subordinated debentures due 2009 for the existing securities on a one-for-one basis.

The new convertibles have a lower conversion price of $3.20 per share subject to a 120% hurdle compared to $8.90 for the existing securities. It stock closed at $2.61 Wednesday. The new convertibles will convert automatically if the stock trades at $6.00 or higher for 20 out of 30 trading days up to Aug. 26, 2005 and $4.00 after that.

The Peachtree City, Ga. air charter and wet lease company said the exchange is a condition to obtaining approval of a federal loan guarantee for the Air Transportation Stabilization Board.

The company received conditional approval on April 23 for a $27.0 million loan guarantee, covering 90% of a planned new $30 million term loan.

The company hopes to complete the transaction and obtain approval for the loan by the middle of September.

World Airways has $40.545 million of the convertibles outstanding. The exchange is subject to $38.5 million or 95% of the existing convertibles being tendered.

"The completion of the federal loan guarantee, combined with our other recent achievements and financial results, would put us on solid ground," said Hollis Harris, chairman and chief executive officer of World Airways, in a news release.

"Over the last six months, our work with the U.S. military has remained strong, we've increasingly diversified our business, and we've built our contract backlog and pipeline. Renegotiating with our bondholders and receiving the loan guarantee represent an important milestone, paving the way for our future growth plans."

The tender expires at 5.00 p.m. ET on Sept. 18.

Morgan Joseph & Co. Inc. (888 641-4214) is dealer manager for the offer. MacKenzie Partners, Inc. (800 322-2885) is the information agent.

Full details at:

http://www.sec.gov/Archives/edgar/data/949240/000095014403008803/g83921sv4.htm

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