Broadband Briefs for 08/11/09
• Mediacom’s subsidiaries commence cash tender offer
By CED staff
Mediacom Communications announced that Mediacom LLC and Mediacom Capital Corp., subsidiaries of the MSO, have jointly begun cash tender offers for up to $500 million in aggregate principal amount of their outstanding “9½ percent senior notes” due 2013, as well as their outstanding “7? percent senior notes” due 2011. The tender offers are scheduled to expire at 11:59 p.m. EST on Sept. 8.
Meanwhile, the two wholly owned subsidiaries intend to offer $300 million in aggregate principal amount of new senior notes due 2019 in a private offering to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended.
Mediacom LLC and Mediacom Capital Corp. will use the net proceeds of the offering, together with borrowings under a proposed new incremental term loan facility to be entered into by Mediacom LLC’s operating subsidiaries pursuant to their existing credit agreement, to purchase up to $500 million principal amount of their outstanding 9½ percent notes and 7? percent notes pursuant to two tender offers. There is currently $500 million and $125 million principal amount outstanding of 9½ percent notes and 7? percent notes, respectively. The 9½ percent notes will be given priority.
• Sprint Nextel prices $1.3B public notes offering
By The Associated Press
OVERLAND PARK, Kan. (AP) – Sprint Nextel Corp. has priced a $1.3 billion public offering of senior notes due 2017. The nation's third-largest wireless carrier said late Monday that proceeds will be used for general corporate purposes.
The offering is targeted to close on Thursday. The 8.375 percent notes will be issued under an indenture between Sprint Nextel and The Bank of New York Trust Co.
Last month, Sprint posted a second-quarter loss  and said it continued to lose some of its most valuable customers. The company, which hasn't seen a quarterly net gain in subscribers since the second quarter of 2007, has struggled to attract and retain customers since purchasing Nextel Communications Inc. in 2005.
Sprint Nextel also announced in July that it is buying Virgin Mobile USA Inc. for $483 million . Sprint Nextel already owns 13.1 percent of Virgin Mobile, which uses Sprint's network to offer service and has 5.2 million subscribers who pay an average of $20 a month. Sprint Nextel has 48.8 million subscribers.
• AT&T and union district reach tentative deal
By The Associated Press
NEW YORK (AP) – AT&T Inc. has reached a tentative deal on a new three-year contract for 23,000 employees in California and Nevada, the telecommunications company said Monday. The previous contract with the Communications Workers of America expired four months ago, along with four contracts together covering nearly 80,500 workers in AT&T's wireline operations.
Another contract covering 23,000 workers in the former BellSouth area in the Southeast expired Saturday. Negotiations are under way. Dallas-based AT&T is the largest private employer of union labor in the U.S.
The contract covering California and Nevada is the second to be reached in this round of negotiations. In mid-July, the district 18,500 employees in the Midwest reached a tentative agreement, which was ratified by its members on Friday. The proposed contract for the Western district is similar, also providing for wage increases of 3 percent for each of the first two years and 2.75 percent for the last. Workers will also be shouldering more of their health care costs.
The CWA said the contract ratification vote will be completed Sept. 1.
• Windstream makes exec appointments
By CED staff
Windstream Corp. has named Brent Whittington as chief operating officer, and he will oversee operations, customer service, information technology, marketing and sales. Whittington has served as executive vice president and chief financial officer for Windstream since December 2005. He previously served as senior vice president of operations for Alltel.
Tony Thomas has been named chief financial officer and will manage the financial, tax, procurement, audit, treasury, risk management and corporate communications teams. Thomas has served as controller for Windstream since June 2006. He previously served as vice president of investor relations at Alltel.
And John Eichler has been named vice president and controller. He will be responsible for the company’s accounting and external reporting departments. Eichler has served as vice president of internal audit for Windstream since July 2006. He previously served as vice president of internal audit for Alltel’s wireline business.
Finally, Cindy Nash has been named chief information officer and will continue to manage the company’s information technology, business processes and training groups. Nash has served as senior vice president of information technology for Windstream since November 2007. She served as chief information officer for Valor Telecom prior to joining Windstream.
• Qualcomm: Court grants motion to dismiss lawsuit
By The Associated Press
SAN DIEGO (AP) – Qualcomm said Tuesday that a California court has granted its motion to dismiss a consumer class-action lawsuit that accused the chip maker of antitrust violations and unfair competition.
Judge William Q. Hayes of the U.S. District Court for the Southern District of California rejected plaintiff Christopher Lorenzo's arguments in his amended complaint, standing by his previous ruling that Lorenzo lacked standing on the antitrust allegations.
The court also maintained that Lorenzo's claims did not give him the right to be compensated by Qualcomm under California's unfair competition law.
|More Broadband Direct 08/11/09:|
|• Abrakadabra at Keystone |
|• OpenTV, Jinni team up to cut through search clutter |
|• Verizon cuts bundle prices for small businesses |
|• Rooney joins BigBand as SVP of worldwide sales |
|• Huawei snags WiMAX deal with Clearwire |
|• Broadcom's 175 Mbps MoCA-certified |
|• Incognito now supports Teknovus' EPON platform |
|• AboveNet gets MEF certification for 10GigE |
|• Tellabs up as company resumes buybacks |
|• Broadband Briefs for 08/11/09 |