NEW YORK-WinStar Communications Inc. said $120 million of its long-term debt-14-percent convertible senior subordinated discount notes due 2005-have been converted into shares of the company’s common stock, strengthening the company’s balance sheet.
“Bondholders will benefit from the strengthening of our balance sheet and the increase in book equity,” said William J. Rouhana Jr., chairman and chief executive officer of WinStar. “Shareholders will benefit by the reduction of interest expense of approximately $100 million through 2005, and the conversion of this debt more than a year ahead of schedule, which eliminates potential dilution of 1.2 million additional common shares.”
