For this research, all of the SIC code 4800 was included:
4810 telephone
4820 telegraphy and other communications
4830 radio and TV broadcast
4840 cable and pay TV
4890 communications services
Telecommunications investments had been continually rising through the
1990s, from $6.3 billion in 69 issues in 1990 to $42.8 billion in 237
deals in 1997. The market stayed active for the first 7 months of
1998, according to CFO Magazine (Sept. 1998), with 170 companies
floating issues worth $46.2 billion.
After Aug. 1, 1998, markets for both bond and stock deals slowed
substantially. A localized Asian crisis early in the year started
this in motion. In July, 1998 the market faced a virtual default by
Russia and a severe decline in the NASDAQ market. "The whole market
dried up at the end of August," according to Thomas Middleton, head of
global communications for Merrill Lynch. Institutional Investor noted
that only $5.5 billion in bonds went to market after July -- for ALL
markets.
Nonetheless, at the beginning of 1999, forecasts by Yankee Group
analysts were for $100 billion in fixed telecommunications investment
for mobile phone licenses; new capacity; and upgrades. "Unlike most
manufacturing companies, telecom firms are embarking on significant
investment programmes and will continue to need a huge amount of
capital," the managing director of JP Morgan's London office told
"Euromoney" (Jan., 1999).
Here are the major financing arrangements, from both public and
private markets, on which there is published information:
COMPANY: Ellipso, Inc.
FINANCING: $225 million direct equity investment; possible $75 million
later; also vendor financing by Boeing for satellite construction and
launch services
SOURCE OF FUNDS: Boeing Co.
USE OF FUNDS: medium-earth-orbit satellite system
DATE: Aug. 12, 1998
COMPANY: Global Crossing
FINANCING: IPO
SOURCE OF FUNDS: Saloman Smith Barner, Merrill Lynch underwriters
USE OF FUNDS:
DATE: Aug. 14, 1998
COMPANY: Salix Technologies
FINANCING: $8 million
SOURCE OF FUNDS: New Enterprise Associates (Baltimore); Grotech
Capital Group (Timonium, MD)
USE OF FUNDS: development of carrier-class communications products for
telecommuncations
DATE: Aug. 24, 1998
COMPANY: LGC Wireless
FINANCING: $8 million
SOURCE OF FUNDS: GSM Capital $3.5 million; Crimson Asia Parters $2
million; Mayfield Fund $2 million; AVI capital $500,000; Hook Partners
III $332,000.
USE OF FUNDS: development of sales, marketing, engineering teams
DATE: Sept. 1, 1998
COMPANY: Tata Communications (India)
FINANCING: $123 million dollar and rupee funding
SOURCE OF FUNDS: BankAmerica, Toronto Dominion Bank (dollars);
Industrial Development Bank of India (rupees)
USE OF FUNDS: cellular telephone business
DATE: August, 1998
COMPANY:CTC Communications Corp.
FINANCING: $75 million
SOURCE OF FUNDS:
USE OF FUNDS: facilities deployment
DATE: Aug. 10, 1998
COMPANY: Network Plus
FINANCING: $40 million preferred stock
SOURCE OF FUNDS: Goldman Sachs, underwriters
USE OF FUNDS: long distance services
DATE: Sept. 1, 1998
COMPANY: Airstar Technologies
FINANCING: $40 million equity
SOURCE OF FUNDS: British/Canadian Investment Group
USE OF FUNDS: network development
DATE: Sept. 15, 1998
COMPANY: PICK Communications
FINANCING: $9.9 million short senior secured notes
SOURCE OF FUNDS: Private placement
USE OF FUNDS: Repay debt; fund capital expenditures; hire technical
staff
DATE: September, 1998
COMPANY: Turtle Mountain Communications
FINANCING: $3 million convertible subordinated debentures
SOURCE OF FUNDS: Private placement
USE OF FUNDS: Working capital; expansion of R&D and marketing for
secure communications systems
DATE: September, 1998
COMPANY: Telmax Communications Corp.
FINANCING:
SOURCE OF FUNDS: Sky Capital Partners; WK Technology Fund
USE OF FUNDS:
DATE: Sept. 14, 1998
COMPANY: Chancellor Media
FINANCING: $750 million bonds
SOURCE OF FUNDS:
USE OF FUNDS:
DATE: Sept. 25, 1998
COMPANY: e.spire Communications, Inc.
FINANCING: $300 million credit facility (over 8 years): $35 million
term loan; $40 million term loan; $225 million revolving credit line.
Option for another $100 million senior secured credit.
SOURCE OF FUNDS: Goldman Sachs Credit Partners
USE OF FUNDS: Acquisition, construction and improvement of
telecommunications assets.
DATE: Sept. 28, 1998
COMPANY: NightFire Software
FINANCING: $5.5 million (first round venture funding)
SOURCE OF FUNDS: US Venture Partners, Sequoia Capital
USE OF FUNDS: Telecommunications service software
DATE: Oct. 1, 1998
COMPANY: United Pan-Europe Communications (UPC)
FINANCING: Project-level financings for 150,000 multi-media
integration boxes
SOURCE OF FUNDS: Siemens
USE OF FUNDS: digital set-top terminals
DATE: Oct. 2, 1998
COMPANY: Bell Atlantic Corp.
FINANCING: $70 billion stock swap
SOURCE OF FUNDS:
USE OF FUNDS:acquisition of GTE Corp.
DATE: Oct., 1998
COMPANY: Swisscom (Switzerland)
FINANCING:
SOURCE OF FUNDS: IPO
USE OF FUNDS:
DATE: October, 1998
COMPANY: NTT DoCoMo
FINANCING: $15 billion
SOURCE OF FUNDS: IPO
USE OF FUNDS:
DATE: October, 1998
COMPANY: Winstar Communications
FINANCING: $2 billion private equipment financing
SOURCE OF FUNDS: Lucent Technologies
USE OF FUNDS: fixed wireless broadband equipment
DATE: Oct. 23, 1998
COMPANY: Southern Cross
FINANCING: $920 miillion
SOURCE OF FUNDS: Deutsche Bank AG, ABN AMRO, Barclays Capital
USE OF FUNDS: transpacific cable system to Australia
DATE: October, 1998
COMPANY: AfriTel (Congo and Ghana)
FINANCING: $2.5 million
SOURCE OF FUNDS: Electric & Gas Technology, Qualcomm
USE OF FUNDS: wireless service in Kinshasa, Congo
DATE: October, 1998
COMPANY: Telesystem International Wireless, Inc.
FINANCING: $355 million senior bank financing
SOURCE OF FUNDS: Banks.
USE OF FUNDS: enhanced specialized mobile radio (ESMR) services
DATE: November, 1998
COMPANY: Net2000 Communications
FINANCING: $170 million in vendor financing
SOURCE OF FUNDS: Northern Telecom
USE OF FUNDS: long-distance phone services
DATE: Nov. 12, 1998
COMPANY: Advanced Communications Inc.
FINANCING:
SOURCE OF FUNDS: RCC Financing Group Ltd.
USE OF FUNDS:
DATE: Nov. 23, 1998
COMPANY: Gabriel Communcations
FINANCING:$80 million private equity
SOURCE OF FUNDS: One Liberty, Telecom Partners, Goldman Sachs,
Centennial Funds, Pritzker Organization
USE OF FUNDS: expansion of start-up
DATE: December, 1998
COMPANY: Ionica Plc
FINANCING: $5 million
SOURCE OF FUNDS: British Telecom
USE OF FUNDS: takeover
DATE: Dec. 17, 1998
COMPANY: Avantel SA (Mexico)
FINANCING: $250 million debentures
SOURCE OF FUNDS: Telefonica SA (Spain)
USE OF FUNDS: local services, including fiber-optic lines
DATE: Dec. 22, 1998
COMPANY: Omnipoint corp.
FINANCING: $375 million -- $125 million unsecured; $200M vendor
financing; $50 million credit line
SOURCE OF FUNDS: Siemens (vendor financing); Nortel Networks (credit
line)
USE OF FUNDS: general corporate purposes
DATE: Dec. 23, 1998
COMPANY: Asia Cellular Satellite
FINANCING: $150 million equity
SOURCE OF FUNDS: Lockheed Martin
USE OF FUNDS: new wireless telephone system
DATE: Jan. 6, 1999
COMPANY: Focal Communications Corp.
FINANCING:
SOURCE OF FUNDS: NTFC Capital Corp.
USE OF FUNDS:
DATE: Jan. 11, 1999
COMPANY: WorldPort Communications Corp.
FINANCING:
SOURCE OF FUNDS: Heico Companies LLC
USE OF FUNDS:
DATE: Jan. 11, 1999
COMPANY: US LEC Corp.
FINANCING:
SOURCE OF FUNDS: GE Capital; First Union National Bank
USE OF FUNDS:
DATE: Jan. 11, 1999
COMPANY: RCN
FINANCING: $250 million preferred stock
SOURCE OF FUNDS: Hicks, Muse, Tate and Furst Inc
USE OF FUNDS: residential-focused competitive local exchange carrier
and cable television operations
DATE: March 22. 1999
COMPANY: Flag Telecom Holdings Group
FINANCING: $550 million
SOURCE OF FUNDS: Barclays Capital
USE OF FUNDS: trans-oceanic cable system
DATE: March, 1998
COMPANY: ITXC Corp.
FINANCING: $15 million VC funding
SOURCE OF FUNDS: Chase Capital Partners, Flatiron Partners, Intel
USE OF FUNDS: Internet telephony start-up
DATE: March 15, 1999
COMPANY: Charter Communications
FINANCING: $3.6 billion bonds
SOURCE OF FUNDS:
USE OF FUNDS:
DATE: March 12, 1999
COMPANY: Sprint Capital
FINANCING: $3.5 billion bonds
SOURCE OF FUNDS:
USE OF FUNDS:
DATE: April 29, 1999
COMPANY: Jazztel (Spain)
FINANCING: $210 million convertible bonds
SOURCE OF FUNDS:
USE OF FUNDS:
DATE: April, 1999
COMPANY: TollBridge Technology
FINANCING:
SOURCE OF FUNDS: Venture financing
USE OF FUNDS:
DATE: May 24, 1999
COMPANY: CompleTel (European CLEC)
FINANCING:
SOURCE OF FUNDS:
USE OF FUNDS:
DATE: May 24, 1999
COMPANY: Olivetti SpA
FINANCING: takeover of Telecom Italia Ltd.
SOURCE OF FUNDS: Chase Bank; Donaldson, Lufkin, Jenrette; Lehman
Brothers
USE OF FUNDS:
DATE: May, 1999
COMPANY: Diginet Americas, Inc.
FINANCING: $70 million in venture funding
SOURCE OF FUNDS:
USE OF FUNDS:
DATE: May 3, 1999
COMPANY: Cable and Wireless Plc
FINANCING: 3.8 billion English pounds
SOURCE OF FUNDS: One 2 One Financing
USE OF FUNDS:
DATE: May 24, 1999
COMPANY: Coaxicom
FINANCING:
SOURCE OF FUNDS:
USE OF FUNDS: Financing for expansion
DATE: May, 1999
COMPANY: Unity Communications
FINANCING: $20 million equity; $51 million subordinated debt
SOURCE OF FUNDS: Debt from Newcourt Capital; equity from Harbert
Management Corp. (Birmingham, Al); BB&T Capital Partners LLC; and
Newcourt Capital.
USE OF FUNDS: telecommunications services
DATE: June, 1999
COMPANY: Metawave Commmunications
FINANCING: $91 million private equity
SOURCE OF FUNDS: Oak Investment Partners; Sevin Rosen Funds; Venrock
Associates; Integral Capital Partners; Worldview Technology Partners;
Bowman Capital Management; Merrill Lynch; and General Motors
Management Corp.
USE OF FUNDS: CDMA products and networks
DATE: July 5, 1999
COMPANY: Choice One Communications
FINANCING:
SOURCE OF FUNDS:
USE OF FUNDS: Financing for expansion
DATE: July 5, 1999
COMPANY: Netia (Poland)
FINANCING: $100 million IPO
SOURCE OF FUNDS: stock
USE OF FUNDS: expansion of fixed line network
DATE: Jul. 9, 1999
COMPANY: Hutchison Whampoa
FINANCING: AUS $340 million project financing
SOURCE OF FUNDS: West LB; Hongkong Bank; IKB; Deutsche Industrie Bank
USE OF FUNDS: Australian mobile network
DATE: July, 1999
COMPANY: Espaol.com
FINANCING: $2.8 million convertible securities
SOURCE OF FUNDS: Private placement
USE OF FUNDS: Internet services in Spanish and Portuguese
DATE: July, 1999)
COMPANY: VodaFone Airtouch PLC
FINANCING: $5 million debt
SOURCE OF FUNDS: Private placement
USE OF FUNDS: Acquisitions, working capital
DATE: July, 1999
COMPANY: Globe Telecommunications
FINANCING: $220 million bonds
SOURCE OF FUNDS: Underwriter: Salomon Smith Barney
USE OF FUNDS: cellular network
DATE: July, 1999
COMPANY: Globalstar Telecommunications
FINANCING: $500 million bonds
SOURCE OF FUNDS: BankAmerica
USE OF FUNDS:
DATE: July, 1999
COMPANY: Thuraya Satellite Communications
FINANCING: $600 million
SOURCE OF FUNDS: Australia and New Zealand Banking Group (ANZ);
Societe Generale; Union National Bank; Abu Dhabi Islamic Bank; Kuwait
Finance House.
USE OF FUNDS: regional mobile satellite system in Asia
DATE: July 12, 1999
COMPANY: Japan Satellite Systems Inc. (JSAT)
FINANCING: 33% or higher equity
SOURCE OF FUNDS: Nippon Telegraph and Telephone (NTT)
USE OF FUNDS: international satellite communications
DATE: July 12, 1998
COMPANY: SkyCache
FINANCING: $20 million 2nd round financing
SOURCE OF FUNDS: Carlyle Venture Partners; Intel; Institutional
Venture Partners; New Enterprise Associates (NEAS).
USE OF FUNDS: broadcast capacity increases to 45 megabytes
DATE: July 12, 1998
This list was compiled not by using Internet searches, but a pair of
databases that report on business news -- Proquest and Business and
Company Resource Center. The two services are available at many
public libraries.
These two services include the New York Times, The Wall Street
Journal, Telecomunications Reports, CFO Magazine, Satellite News,
Private Placement Letter, Communications Today, Mobile Phone News,
Communications News Weekly, and Venture Capital Journal.
A number of these publications have Internet sites, but charge for
archived information like we were seeking here.
I've listed the amount of information that was publicly available
on-line. There may be more detail on some of these financings at
company sites or in old print versions of publications.
Search strategy:
telecommunications + financing (searched by date)
Best regards,
Omnivorous-GA |
