WinStar Communications Inc, New York-based wireless local telecom company says it will raise $500m in notes and preferred stock through a series of institutional private placements. The offerings will come in the form of $200m of senior subordinated notes, $150m of senior subordinated deferred interest notes and $150m of senior cumulative convertible preferred stock. The company plans to use the net proceeds from the offerings to expand its telecommunications operations and for general corporate purposes. WinStar plans to build a nationwide system of broadband local networks that will offer voice, data and internet service. The company’s business plan got a boost last November when the Federal Communications Commission lifted restrictions on accumulation of the 38GHz spectrum, which WinStar uses to provide its wireless fiber services in more than 20 cities (CI No 3,287). It has since accumulated more of the spectrum.
