NEW YORK-Citing poor market conditions, WinStar Communications Inc. announced July 30 it was halting an add-on stock offering of 4 million shares and a concurrent $200 million debt issue, both planned for sale last week.
“We had announced our financing plans when market conditions were better and our stock was trading between $25 and $30 per share,” said William J. Rouhana Jr., chairman and chief executive officer.
WinStar, which trades on Nasdaq under the symbol WCII, closed July 30 at $18.75 per share. As of July 25, WinStar stock had reached a 52-week high of $32.50 and a 52-week low of $8.25, according to Nordby International Inc., Boulder, Colo.
WinStar, headquartered in New York, is a competitive access provider that uses its 38 GHz licenses to offer wireless last-mile services to long-distance carriers, competitive access providers, mobile communications companies, local telephone companies and other customers with broadband local communications needs.
“Given our cash position of approximately $200 million, we are comfortable with our capital spending plans for the next 18 to 24 months, and we saw no reason to dilute our current stock and bondholders by issuing securities below what we consider a reasonable value,” Rouhana said. “If market conditions improve in the future, we will reconsider raising capital.”
